Which Method of Promotion Budgeting Would Most Likely Be Used

question 163

Multiple Choice

Which method of promotion budgeting would most likely be used by small businesses?

• A)objective and task budgeting
• B)percentage of sales budgeting
• C)all-you-can-afford
• D)competitive parity budgeting

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Definitions:

Purely Competitive

Purely competitive markets are those in which numerous small firms compete against each other, and the price of goods or services is determined by the market with no single participant having significant control over it.

Imperfectly Competitive

Describes markets where individual sellers have some control over the prices due to lack of perfect competition, includes monopolistic competition, oligopoly, and monopoly markets.

Perfectly Competitive Market

A theoretical market structure characterized by many buyers and sellers, free entry and exit, and a homogeneous product, leading to an efficient allocation of resources.

Resource Demand

The need for resources by businesses or the economy to produce goods and services.