Sam, the Owner of a Small Company, Learned That a Competitor

question 14

Multiple Choice

Sam, the owner of a small company, learned that a competitor was planning to spend $150,000 on promotion in the next financial year. As soon as he learned this, Sam called his finance manager and said, "I want to spend $150,000 on promotion next year." In this case, which method of promotional budgeting does Sam use?

• A) the objective-and-task method
• B) the competitive-parity method
• C) the percentage-of-sales method
• D) the affordable method
• E) the pull-push method

---

Definitions:

Monthly

Occurring or produced once a month.

Growth Rate

The rate at which a company's or country's economy grows or the rate at which a given variable, such as population or an investment, increases over a specified period.

Compounded

The process where the value of an investment increases because the earnings on an investment, both capital and interest, earn interest as time passes.

Monthly

Occurring, produced, or executed once every month.