If a Local Business Wants to Advertise Extensively in a Local

question 36

Multiple Choice

If a local business wants to advertise extensively in a local market,wants to reach an upscale and well-educated audience,needs room for explanation,and is unconcerned with the quality of the image,what medium would best suit its advertising needs?

• A)out-of-home media
• B)radio
• C)magazines
• D)local or spot television
• E)newspapers

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Definitions:

Du Pont Identity

A formula that decomposes a company's return on equity into three components: profit margin, asset turnover, and financial leverage.

Receivables Turnover

A financial ratio that measures how efficiently a company collects its accounts receivable or the firm’s efficiency in managing credit.

Total Asset Turnover

This is a financial efficiency ratio that measures how well a company uses its assets to generate sales revenue.

Price-Earnings Ratio

A valuation metric indicating the ratio of a company's stock price to its earnings per share, used to evaluate the relative value of shares.