Despite the "Dot Com" Meltdown of 2000 and the Demise

question 34

Multiple Choice

Despite the "dot com" meltdown of 2000 and the demise of many websites, Phase II of the e-promotion revolution is:

• A) eliminating advertising entirely
• B) much more successful
• C) likely to decrease in the next decade.
• D) in limbo awaiting better ad measurement tools

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Definitions:

Sales

The transactions involved in selling goods or services in the normal course of business, generating revenue for the company.

DOL

Degree of Operating Leverage; a measure of a company's fixed costs as a percentage of its total costs, indicating how earnings before interest and taxes (EBIT) change in response to a change in sales volume.

Contribution Margin

The amount of revenue remaining after deducting variable costs, used to cover fixed costs and generate profit.

Variable Cost

Expenses that vary depending on the amount of products or services a company generates.