Often Businesses Assume That by Tying Budget to Sales, a Company

question 46

Multiple Choice

Often businesses assume that by tying budget to sales, a company may have the least amount to spend when it actually needs the greatest amount of promotion dollars. This is a major fallacy of which method?

• A)Objective and task.
• B)Percentage of sales.
• C)All-you-can-afford.
• D)Competitive parity.

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Definitions:

Natural Resource

Materials or substances such as minerals, forests, water, and fertile land that occur in nature and can be used for economic gain.

Consumer Income

The total earnings or financial inflow that an individual receives from various sources, including wages, investments, and benefits, which determines their purchasing power.

Serious Public Concern

A matter that is of significant interest or worry to the general public often requiring government attention or action.

Oil Depletion

The reduction of available oil resources due to extraction and consumption over time.