Which Public Relations Tool Involves a Company Spending Money to Support

question 34

Multiple Choice

Which public relations tool involves a company spending money to support an issue,cause,or event that is consistent with corporate objectives?

• A) Advocacy
• B) Lobbying
• C) Product placement
• D) Sponsorship
• E) Underwriting

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Definitions:

Diminishing Returns

An economic principle where the addition of a variable factor to a fixed factor leads to a decrease in the marginal output of the variable factor beyond a certain point.

Variable Factors

Components of production that can be adjusted in the short term to change the output level, such as labor and raw materials.

Economies of Scale

A situation where the cost of producing one unit of a good decreases as the volume of production increases.

Diseconomies of Scale

The phenomenon where, beyond a certain point, the cost per unit increases as a company continues to grow in size and output.