Which Promotional Tool Is Most Cost Effective When a Product

question 122

Multiple Choice

Which promotional tool is most cost effective when a product is in the decline stage of its product life cycle?

• A) direct mail
• B) public relations
• C) sales promotion
• D) advertising
• E) personal selling

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Definitions:

Stockholders' Equity

The residual interest in the assets of a corporation that remains after deducting its liabilities, representing ownership interest.

Common Stock Option Warrants

Rights issued to investors to purchase common stock at a specified price within a predefined time frame, potentially diluting existing shareholders.

Treasury Stock

Shares that were issued and later reacquired by the corporation, reducing the amount of outstanding stock on the open market.

Voting Rights

The entitlement of shareholders to vote on company matters, typically exercised at annual meetings or special resolutions, often proportional to the number of shares held.