Which of the Following Is a Weakness of the Percentage-

question 175

Multiple Choice

Which of the following is a weakness of the percentage- of- sales method of establishing the promotion budget?

• A) The percentage- of- sales method of establishing the promotion budget discourages promotional wars.
• B) The percentage- of- sales method of establishing the promotion budget assumes the competition knows what it is doing.
• C) The percentage- of- sales method of establishing the promotion budget ignores the role of promotion as an investment in the business.
• D) The percentage- of- sales method of establishing the promotion budget is a complicated, time- consuming process.
• E) The percentage- of- sales method of establishing the promotion budget leads to a budget that ignores market opportunities.

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Definitions:

Sole Proprietorship

A business structure where a single individual both owns and operates the business, and is responsible for all its debts and liabilities.

Concession Sales

The activity of selling food, beverages, or merchandise at sports, entertainment venues, or other events.

Vendor's Fees

Fees charged by a seller for the services or goods provided, often related to events, software, or marketplaces.

Partnership

An agreement by two or more persons to carry on, as co-owners, a business for profit.