Which of the Following Statements Explains Why an Organization Would

question 64

Multiple Choice

Which of the following statements explains why an organization would want to use an outside advertising agency?

• A) An outside advertising agency saves money for the client.
• B) An outside advertising agency helps the client gain more prestige and a better image.
• C) An outside advertising agency has more knowledge of the brand's identity and its previous promotional activities.
• D) An outside advertising agency provides the client with the services of highly skilled individuals who are experts in a number of areas including creative, media, and research.

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Definitions:

STRIPPED Cash Flows

Cash flows from an investment that have had certain elements removed, often related to interest or taxes, to reflect the underlying performance more accurately.

Arbitrage

The practice of profiting from price differences of the same asset in different markets by simultaneously buying and selling it.

Treasury Bond

A long-term government debt security with a fixed interest rate, considered low-risk.

Expectations Theory

A theory in finance that predicts the future interest rates from the yield curve of long-term and short-term government bonds.