Which of the Following Is True Regarding the Functioning of Advertising

question 129

Multiple Choice

Which of the following is true regarding the functioning of advertising agencies?

• A) They are large organizations employing many creative people.
• B) They do not involve in planning and handling mass selling details for advertisers.
• C) They are dependent on the advertisers and reflect only their viewpoint.
• D) They are independent of the advertiser and have an outside viewpoint.
• E) They are under contract with one client at a time.

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Definitions:

Income Statement

A financial statement that shows a company’s revenues and expenses over a specific period, highlighting net profit or loss.

Merchandiser

A business entity engaged in selling goods directly to consumers or other businesses.

Cost Flow

The manner in which costs move through a firm, from initial acquisition of raw materials to final sale of finished goods.

Single-Step Income Statement

An income statement format that lists all revenues and then deducts all expenses to find the net income with only one subtraction.