While Promotion Strategies Bring Positive Results in the Short-Term, the Long-Term

question 45

Multiple Choice

While promotion strategies bring positive results in the short-term, the long-term risks of repeated promotions include

• A) hurting the brand's image
• B) alienating distributers
• C) increasing costs
• D) bringing attention to competitor's products
• E) government interference

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Definitions:

Periodic Inventory System

A periodic inventory system is an accounting method where inventory levels and cost of goods sold are determined at specific periods, such as monthly or annually, through a physical count.

Cost of Goods Sold

Cost of Goods Sold (COGS) represents the direct costs attributable to the production of goods sold by a company, including material and labor costs.

Stockholders' Equity

The residual interest in the assets of a corporation that remains after deducting its liabilities, representing ownership equity.

Net Income

The amount of money a firm earns after deducting all its expenses, taxes, and costs from its total revenue, indicating its profitability during a specific period.