A Useful Method for Determining the Size of the Business

question 39

Multiple Choice

A useful method for determining the size of the business or industrial advertising budget is:

• A)the objective-task method.
• B)the percentage of sales approach.
• C)the competitive parity approach.
• D)the affordable approach.
• E)the trend line approach.

---

Definitions:

Comparative Advantage

The ability of an individual, firm, or country to produce a certain good or service at a lower opportunity cost than competitors.

Absolute Advantage

The ability of an individual, firm, or country to produce more of a good or service than competitors using the same amount of resources.

Shoemaking

is the craft or industry involved in the design, production, and repair of shoes, including both traditional techniques and modern manufacturing.

Opportunity Cost

Opportunity cost represents the value of the best alternative that is foregone when making a choice, highlighting the trade-offs involved in any decision.