Which of the Following Statements About Advertising Agencies Is FALSE

question 23

Multiple Choice

Which of the following statements about advertising agencies is FALSE?

• A) The advertising agency gets a 15 percent commission on local rate but not on national rates.
• B) Many advertisers refuse to work with an agency that handles competing accounts.
• C) Some full-service agencies handle their clients' overall marketing strategy planning.
• D) A number of advertisers now grade the work done by their agencies and the agencies' pay depends on the grade.
• E) None of the above is false.

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Definitions:

Par Value

The nominal or face value of a bond, share of stock, or other financial instrument.

Common Stock

Refers to shares that represent ownership in a corporation, providing voting rights and dividends, but with no fixed dividend rate.

Shares Outstanding

The total number of a company's shares that are currently owned by shareholders, including restricted shares.

Reacquired

Refers to assets or shares that a company buys back from investors or shareholders.