Advertising Expenses Would Be Considered Which Element of the Value

question 20

Multiple Choice

Advertising expenses would be considered which element of the value chain?

• A)Customer service
• B)Marketing
• C)Production
• D)Research and development

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Definitions:

Required Rate of Return

The least percentage of yearly return needed to entice entities or individuals to invest in a particular project or security.

Average IRR

The mean internal rate of return, calculating the average profitability of investments or projects over time.

Pre-Tax Cost

The expense incurred by an organization or individual before taxes have been deducted.

After-Tax Cost of Capital

The net cost of capital to a company after accounting for the tax benefits associated with debt financing.