Why Is Promotion Often Criticized

question 102

Multiple Choice

Why is promotion often criticized?

• A) because it is used by nonprofits seeking financial support
• B) because it is used to help businesses grow and meet their key customer needs
• C) because it can more effectively use resources
• D) because it is used to encourage consumers to buy products they can't afford

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Definitions:

Dividends

Dividends are a portion of a company's earnings that are paid to shareholders, typically on a quarterly basis, as a reward for investing in the company's equity.

Agency Relationships

Refers to the connection between principals (such as shareholders) and agents (such as company executives), where agents are expected to act in the best interests of principals.

Owner/Managers

Individuals who both own and actively manage a company, blending ownership and operational responsibilities.

Shareholders

Individuals or entities that own shares in a corporation, giving them partial ownership and possibly rights to dividends and voting in company matters.