Which of the Following Is NOT True About Advertising

question 66

Multiple Choice

Which of the following is NOT true about advertising?

• A) Advertising brings businesses and customers together.
• B) Advertising helps promote many useful goods and services.
• C) Advertising improves the incentive to make low-cost, high-quality items.
• D) Advertising lowers the social surplus by costing businesses a lot of money with no corresponding benefit.

---

Definitions:

Capital Projects

Long-term investment projects undertaken by a business or organization to build, add, or improve on their capital assets.

Mutually Exclusive

Refers to a situation where the selection of one option automatically excludes the possibility of choosing any other option.

Replacement Chain

A capital budgeting decision tool that compares different projects or investments with unequal lifespans by calculating their equivalent annual costs or benefits.

Profitability Index

A financial metric used to measure the relative profitability of an investment, calculated as the present value of future cash flows divided by the initial investment.