Which of the Following Statements Is True About the Use

question 43

Multiple Choice

Which of the following statements is true about the use of corporate leaders as advertising spokespersons?

• A)Many companies believe the use of a company president or CEO is an ineffective way of expressing the company's commitment to quality and customer service.
• B)Only Fortune 500 companies use corporate leaders as spokespersons.
• C)If a firm's image is too closely tied to its leader, it will face problems if and when the leader leaves the company.
• D)Corporate spokespersons are ineffective for consumer products.
• E)Corporate spokespersons improve the message source image but have no effect on its trustworthiness.

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Definitions:

Lease Classification Error

A lease classification error occurs when a lease is incorrectly categorized, for example, as an operating lease instead of a capital lease, potentially affecting financial statements.

Nonmonetary Liability

Obligations that do not require a cash settlement, rather possibly settled through the transfer of other non-cash assets or services.

Product Warranty

A guarantee from the seller to the buyer that a product will perform to a certain standard or will be repaired or replaced during a specified period.

Market Rate

The prevailing interest rate available in the marketplace on deposits, debts, or loans.