Scenario 8-3 After Working as an Account Executive in an Advertising Agency

question 4

Multiple Choice

Scenario 8-3
After working as an account executive in an advertising agency for 20 years, you've decided you want to own your own business. You buy Springfield Hardware, a neighborhood hardware store, from a man who has owned and run the business for the past 52 years. He sells you the store and its entire inventory, but with one warning-he wasn't much on paperwork, so there won't be a lot of records to be found. You buy the store and begin to create your ad plan.
-(Scenario 8-3) You're currently deciding exactly where and when ads will be placed,and determining the strategy behind each placement.This takes a while-with the explosion of Internet sites,outdoor advertising,and innovative promotions,the options are almost unlimited.In this way,you are: 

• A) setting up account services. 
• B) creating a media plan. 
• C) devising a budgeting method. 
• D) doing advertising research.

---

Definitions:

Call Option

A financial contract giving the buyer the right, but not the obligation, to buy a stock, bond, commodity, or other asset or instrument at a specified price within a specific time period.

Stock Price

The cost per share at which a company's stock is bought and sold in the stock market.

Dividend

A portion of a company's earnings distributed to shareholders, usually in the form of cash payments or additional stock.

Selling Price

The price at which goods or services are offered to buyers.