An Ad for Lipton Tea States That According to Laboratory

question 96

Multiple Choice

An ad for Lipton tea states that according to laboratory research,"a serving of tea has more antioxidants than a serving of carrots or broccoli." Which type of ad execution is being used in this example?

• A)a dramatization
• B)testimonial
• C)scientific/technical evidence
• D)slice-of-life
• E)comparison

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Definitions:

Best Efforts Underwriting

A type of underwriting where the underwriter agrees to sell as much of the offering as possible, but does not guarantee the sale of the entire issue.

Flotation Costs

Costs associated with the issuance of new securities by a firm, including charges for underwriting, legal services, and registration.

Gross Spread

The difference between the underwriting price received by the issuer of securities and the price at which the securities are sold to the public.

Oversubscription Privilege

A right given to current shareholders to purchase more shares of a new issue before it is offered to the public, usually at a discount.