In Advertising,the Performance System Entails

question 33

Multiple Choice

In advertising,the performance system entails

• A) billing for expenses and modest profit with extra compensation for successful campaigns.
• B) paying only for advertisements that work.
• C) a fee arrangement where agencies bill clients for expenses as they are incurred.
• D) billing clients a certain percentage above the media charge for time and space.
• E) payment with shares in the company.

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Definitions:

Forethought

The thoughtful consideration and planning of actions in advance, often to achieve a desired outcome or avoid negative consequences.

Original Equipment Manufacturer

An entity that produces parts and equipment that may be marketed by another manufacturer.

Producer

An individual, group, or organization that creates goods or provides services, typically for sale.

Business Customers

Organizations that purchase goods or services for use in the production of other services or products that are sold, rented, or supplied to others.