Company Management Is Having a Difficult Time Deciding Whether to Allot

question 68

Multiple Choice

Company management is having a difficult time deciding whether to allot more money to a marketing campaign involving ad buys and promotional events,or to a staff of sales representatives to sell the organizers. What factor should they consider in allotting the budget?

• A)A national marketing campaign can cost more than the yearly salaries of an entire sales department.
• B)A marketing campaign can reach prospects in several geographic areas at the same time.
• C)Salespeople can visit several retail outlets a day.
• D)Salespeople work on commission.
• E)Even with a marketing campaign,retail outlets will need to order through and be trained on product knowledge by salespeople.

---

Definitions:

Stockholders

Owners of the stock of the corporation.

Dividends

Payments made by a corporation to its shareholder members, usually distributed from the company's profits.

Liquidation

Occurs when a business is terminated, the assets are sold, and liabilities and partners are paid off.

Creditors

Entities or individuals to whom a company owes money or has financial liabilities, often in the context of short or long-term borrowing.