Liberty Mutual Insurance Paid for an Ad Supporting the Efforts

question 23

Multiple Choice

Liberty Mutual Insurance paid for an ad supporting the efforts of Students Against Drunk Driving (SADD) and safe teen driving.This ad was an example of:

• A)advocacy advertising.
• B)cause-related marketing.
• C)publicity.
• D)advertorial marketing.
• E)transactional marketing.

---

Definitions:

Operating Leverage

A measure of how revenue growth translates into growth in operating income, indicating the proportion of fixed to variable costs.

Fixed Costs

Costs that do not fluctuate with changes in production level or sales volume, such as rent, salaries, and insurance.

EBIT

Earnings Before Interest and Taxes, also known as EBIT, is a way to evaluate a company's profit without considering tax and interest expenses.

Financial Risk

The likelihood of experiencing a loss of money in a business operation or investment.