Explain the Concept of Advertiming

question 63

Essay

Explain the concept of advertiming.Describe the best time to advertise the following products:
(a) swimming pool
(b) beer
(c) nasal spray
(d) cereal
(e) school supply

---

Definitions:

Cash Discounts

An incentive offered by sellers to buyers for early payment of invoices, aimed at encouraging prompt payment and improving cash flow.

Short-term Financial Policy

Pertains to strategies and decisions related to managing a company’s current assets and liabilities to ensure liquidity.

Flexible Short-term Policy

A financial strategy that allows for maintaining a higher level of current assets, providing a buffer against unforeseen liabilities or expenses.

Restrictive Short-term Policy

A financial policy aimed at minimizing the amount of working capital to reduce short-term financing costs, often at the risk of running low on liquidity.