Which of the Following Statements Describes a Benefit of Sponsorship

question 29

Multiple Choice

Which of the following statements describes a benefit of sponsorship?

• A) There is little clutter associated with a sponsorship.
• B) Sponsorships are inexpensive.
• C) It is relatively easy to gauge the effectiveness of a sponsorship.
• D) Sponsorships enhance the image of the company sponsoring them.
• E) Sponsorships cannot be cost-efficient.

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Definitions:

Rate Of Return

The gain or loss of an investment over a specified period, expressed as a percentage of the investment’s cost.

Required Return

The lowest profit anticipated by an investor from a specific asset or project investment.

Profitability Index

A financial metric that calculates the relative profitability of an investment by dividing the present value of future cash flows by the initial investment cost.

Required Rate

The minimum return an investor expects to achieve by investing in a particular asset, often used in capital budgeting.