When the Charitable Contributions of a Firm Are Tied Directly

question 62

Multiple Choice

When the charitable contributions of a firm are tied directly to the customer revenues produced through the promotion of one of its products,this marketing practice is referred to as

• A)marketing philanthropy.
• B)marketing patronage.
• C)relationship marketing.
• D)transactional marketing.
• E)cause marketing.

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Definitions:

Net Operating Income

A measure of a company's profitability, calculated by subtracting operating expenses from gross profit.

Flexible Budget

A budget that adjusts or flexes with changes in volume or activity level.

Net Operating Income

The profit derived from a company's everyday operations, calculated by subtracting operating expenses from gross profit.

Planning Budget

A budget prepared for a specific level of activity; it can be adjusted to reflect various levels of operation.