How Does Advertising Affect the Value of a Product

question 48

Multiple Choice

How does advertising affect the value of a product?

• A) Advertising cannot add value to a product if the advertising is needed to educate consumers about a new product use.
• B) By monopolizing a product, advertising eliminates competition, which also serves consumer's self-interest.
• C) By simply making the product better known, advertising can make the product more desirable to the consumer.
• D) Advertising always gives added value to generic brands.
• E) Advertising has no effect on the value of a brand or product.

---

Definitions:

General Journal

An accounting book where all transactions are initially recorded, based on the double-entry bookkeeping system, before being transferred to specific accounts.

Accounts Receivable

Company receivables from goods or services provided to customers that remain unpaid.

Accounts Payable

Debts or financial obligations to vendors or lenders for products and services that have been acquired but remain unpaid.

Office Equipment

Office Equipment refers to the assets purchased for use in a business office, which may include computers, printers, furniture, and more, aiding in operational efficiencies.