The Four Common Methods That Companies Use to Decide on a Promotion

question 123

Multiple Choice

The four common methods that companies use to decide on a promotion budget include the affordable method,the percentage-of-sales method,________,and the objective-and-task method.

• A) financial method
• B) incremental growth method
• C) zero-based budgeting method
• D) competitive-parity method
• E) last year's budget method

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Definitions:

Initial Margin

The minimum amount of capital required to be deposited in a margin account before trading on margin or selling short.

Underwriting Arrangement

The process by which an underwriter brings a new security issue to the public, often assuming the risk of selling the securities.

Investment-Banking Firm

A financial institution that assists individuals, corporations, and governments in raising financial capital by underwriting or acting as the client's agent in the issuance of securities.

Underwriting Syndicate

A group of investment banks that work together to issue new securities to the market, sharing the risk and responsibility of selling the offering.