The Primary Reason Some Advertisers Set Up a Wholly Owned

question 9

Multiple Choice

The primary reason some advertisers set up a wholly owned in-house ad agency is to:

• A) increase their overhead.
• B) tighten control over their advertising.
• C) stimulate external creative efforts on the part of the marketing staff.
• D) meet the challenge of ad agencies and mass media with respect to creative incentives.
• E) increase the percentage of the markup they earn.

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Definitions:

Revenues

The total amount of money received by a company for goods sold or services provided during a specific time period.

Assets Test

A means of determining eligibility for certain government assistance programs based on the value of an individual's or entity's assets.

Reportable Segments

Components of an enterprise about which separate financial information is available and is evaluated regularly by the chief decision-maker in deciding how to allocate resources.

Assets

Economic resources owned or controlled by a business, viewed as having value and expected to provide future benefits to the operations.