Which of the Following Helps to Explain the Increase in Sales

question 26

Multiple Choice

Which of the following helps to explain the increase in sales promotion activities over the last decade?

• A) The increase of brand loyalty in many product categories
• B) The tremendous decrease in the number of new products
• C) The increased emphasis on long term strategy and performance by most companies
• D) The growing power of retailers and their demands for sales performance

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Definitions:

Stock Price

The cost of purchasing a share of a company; it fluctuates based on supply and demand in the stock market.

Share Repurchases

Occurs when a firm repurchases its own shares.

EPS

Earnings Per Share (EPS) is a financial ratio calculated by dividing the company's net profit by the number of its outstanding shares, indicating how much money a company makes for each share of its stock.

Myron Gordon

An economist best known for his work on dividend policy and stock valuation, including the Gordon Growth Model which relates a company's dividend policy to its stock valuation.