In Some Industries, Personal Selling Accounts for Most of the Promotional

question 106

Multiple Choice

In some industries, personal selling accounts for most of the promotional budget. This is true because:

• A)it has a wider reach than the mass media.
• B)it is not as expensive as other forms of communication.
• C)the average cost per sales call has decreased since 1980.
• D)the cost per sales call is lesser than the cost per message through other media.
• E)one sales call is not likely to be enough to close a deal.

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Definitions:

Residual Dividend Policy

A corporate approach to dividends where the amount distributed is based on profits remaining after all operational and expansion expenses are covered.

Common Stock

A type of equity security that represents ownership in a corporation, entitling the holder to vote at shareholder meetings and to receive dividends.

Dividend Payout Ratio

A financial ratio that shows the percentage of a company's earnings paid out as dividends to shareholders.

Dividend Reinvestment Plans

Programs offered by corporations allowing investors to automatically reinvest dividends paid out by the stock into additional shares, potentially increasing their holdings over time.