Consumers Benefit from Advertising

question 72

Multiple Choice

Consumers benefit from advertising:
I. by gaining product information.
II. by being persuaded to try a new product they might like.
III. when the ad provides a signal of the product's quality.
IV. if the ad leads to a lower price for the product.

• A) IV only
• B) II and III only
• C) I and II only
• D) I, II, III and IV

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Definitions:

Note Payable

A written promise to pay a specific amount of money, often bearing interest, at a future date or on demand.

Liquidated

The process of closing a business by selling off assets to pay creditors and distributing any remaining assets to the owners or shareholders.

Involuntary Bankruptcy

A legal process initiated by creditors seeking to collect debts from a company or individual that cannot pay its obligations.

Petition Filed

The act of formally submitting a document to a court or official body requesting a legal action or judgment.