Sales Promotion

question 124

Multiple Choice

Sales promotion:

• A) should not be needed if a firm has a good mass selling program.
• B) is not likely to be used in the market maturity stage of the product life cycle.
• C) objectives should be developed after the other promotion decisions have been made-so the manager knows how much is left in the budget.
• D) activities are often handled by outside specialists.
• E) All of these alternatives are correct.

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Definitions:

Goodwill

An intangible asset that arises when a company acquires another for more than the fair value of its net tangible and identifiable intangible assets.

Partial Equity Method

An accounting approach where an investor recognizes its share of investee profits or losses until the carrying amount of the investment is reduced to zero, differing from the full equity method by not recognizing losses beyond the initial investment cost.

Equity Method

A financial accounting approach for recording investments in associated companies by reflecting the owner's share of the investee's profit or loss within the investor's financial statements.

Partial Equity Method

An accounting method used for investments where the investor has significant influence, recording income based on the proportion of earnings rather than dividends received.