As a Result of Economies of Scale, Large Advertisers

question 113

Multiple Choice

As a result of economies of scale, large advertisers:

• A)are likely to enjoy more favorable advertising time and space than smaller advertisers.
• B)get lower advertising rates than smaller advertisers.
• C)accrue the disadvantages of advertising several products jointly.
• D)have higher average costs of production.
• E)must spend more money on advertising to realize a better return.

---

Definitions:

Consolidated Revenues

The total income generated by a corporation and all its subsidiaries, combined to present the overall revenue figures in the financial statements.

Common Stock

A type of security that represents ownership in a corporation, giving holders voting rights and a share in the company's profits through dividends.

Par Value

The nominal or face value of a share of stock or a bond as stated by the issuer, which is often minimal and has little relation to its market price.

Business Combination

The process of merging two or more companies into a single entity, often to expand business operations or to enter new markets.