Regarding Promotion Methods, Which of the Following Statements Is TRUE

question 254

Multiple Choice

Regarding promotion methods, which of the following statements is TRUE?

• A) Personal selling can provide immediate feedback.
• B) Publicity is "free," but usually is ineffective for really new products.
• C) Advertising is usually more tailored to the individual needs and attitudes of target customers than personal selling.
• D) Sales promotion activities produce results very slowly compared to advertising.
• E) All of the above are true.

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Definitions:

Target Capital Structure

Target capital structure is the proportional combination of debt, equity, and other financing sources a company aims to maintain.

Discounted Cash Flow

A valuation method used to estimate the value of an investment based on its expected future cash flows.

Cost of Equity

The return that investors expect for investing in a company's equity, reflecting the risk compared to the risk-free rate of return.

Beta

Beta is a measure of the volatility, or systematic risk, of a security or a portfolio compared to the market as a whole.