All of the Following Observations Concerning PLAs Are True EXCEPT

question 75

Multiple Choice

All of the following observations concerning PLAs are true EXCEPT:

• A) they can fulfill message objectives better than shorter commercials.
• B) they have seen a sudden growth in recent times.
• C) they were once relegated to independents and cable channels.
• D) they combine the power of advertising, direct response, and sales promotion.
• E) they are yet to be adopted by national marketers.

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Definitions:

Diluted Earnings

Net income available to common shareholders, adjusted for the potential impact of convertible securities, options, and warrants, showing earnings per share if all convertibles were exercised.

Investing Section

Part of the cash flow statement that reports the acquisition and disposal of long-term investments and property, plant, and equipment.

Operating Section

The part of the income statement that displays the revenues and expenses directly related to the core business operations.

Variable Interest Entities (VIEs)

Entities in which the investor holds a controlling interest that is not based on a majority of voting rights, requiring a special consolidation treatment under financial accounting standards.