Refer to the Passage Below to Answer the Following Questions

question 20

Multiple Choice

Refer to the passage below to answer the following questions.
Polo Ralph Lauren manufactures and sells high-quality,expensive brands of clothing as well as accessories,cosmetics,and home products.The company maintains complete control over the brand image and all of the functions necessary to develop,execute,and deliver advertising.Polo appeals to consumers' lifestyle aspirations.Its products are of high quality and better than most competitors' offerings.The objective in the company's advertising is to convey this image and the fashion statement it makes.
-When Polo Ralph Lauren advertises in fashion magazines,it focuses on the company's brand identity and image by merely showcasing a beautiful,well-dressed person without giving any information at all except the brand name.What type of advertising is this?

• A)institutional advertising
• B)direct-response advertising
• C)brand advertising
• D)business-to-business advertising
• E)indirect advertising

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Definitions:

Required Return

The minimum return an investor expects to achieve by investing in a particular asset, reflecting the risk associated with the investment.

Net Cash Flows

The difference between a company's cash inflows and outflows in a given period, indicative of its financial health.

Capital Budgeting

The process of evaluating and selecting long-term investments consistent with the firm's goal of wealth maximization.

Net Cash Flows

The difference between cash inflows and outflows during a specific period, reflecting the company's financial health.