An Important Criticism of Advertising Is That in Some Markets

question 148

Multiple Choice

An important criticism of advertising is that in some markets it may:

• A)expand brand loyalty
• B)attract products of lower quality in the market
• C)increase elasticity of demand
• D)drive market prices down

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Definitions:

Squeeze-Out

A strategy or action taken by majority shareholders to pressure minority shareholders into selling their shares.

Dividends

Payments made by a corporation to its shareholders from the company's profits or reserves.

Double Derivative Suit

A legal action brought by a shareholder on behalf of a parent company against a subsidiary for harm done to the parent company.

Derivative Action

A lawsuit brought by a corporation's shareholder on behalf of the corporation against a third party, often its executives or directors, for misconduct.