Which of the Following Statements Is True About the Use

question 23

Multiple Choice

Which of the following statements is true about the use of color in magazine advertising?

• A)The more the color used in an ad, the lower the advertising cost.
• B)Advertisers prefer using black and white ads because of the greater visual impact on portraits.
• C)Color ads are considered better suited for attracting and holding attention.
• D)Bleed pages are always less expensive than color pages with margins because less fine-tuning is required with bleed pages.
• E)Color ads are generally cheaper than black and white ads if they are placed on the front cover of a magazine.

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Definitions:

Preferred Stock

Preferred stock is a type of stock that gives its holders priority over common stockholders in terms of dividend payouts and claims on assets in the event of a liquidation.

Treasury Stock

Refers to shares that were once part of the outstanding shares but were bought back by the company. Now, these shares are held in the company's treasury.

Treasury Stock

Treasury stock refers to shares that were issued and later reacquired by the issuing corporation, not considered while calculating earnings per share or dividends.

Stated Value

The value assigned to no-par value stock by the company's board of directors, which becomes the legal capital per share that must be retained in the business.