When a Company Pays Money to Sponsor an Individual or a Group

question 98

Multiple Choice

When a company pays money to sponsor an individual or a group or team that participates in an activity, it is called:

• A)public relations.
• B)advertising expenditures.
• C)social media marketing.
• D)sponsorship marketing.

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Definitions:

Par Value

The stated value of a financial instrument like a bond or stock share, as declared by the issuer.

Retained Earnings

The portion of a company's profits that is kept or retained for reinvestment or to pay debt, rather than being paid out as dividends to shareholders.

Treasury Stock

Shares of a company's own stock that it has reacquired from shareholders, but not retired, and may resell in the future.