Which of the Following Statements About Sales Promotion Is False

question 174

Multiple Choice

Which of the following statements about sales promotion is False?

• A) Sales promotions may encourage brand switching more than they encourage brand loyalty.
• B) The design and management of sales promotions is often done by specialists from outside the firm.
• C) Sales promotions that are poorly run may reflect negatively on the firm sponsoring them, even if the firm uses an outside specialist to manage the promotion.
• D) Once a firm begins running regular sales promotions, it cannot change its strategy.
• E) Sales promotion should not be left to "amateurs."

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Definitions:

Face Value

The nominal or dollar value printed on a bond or a stock certificate, representing the amount due to the holder at maturity.

Straight-Line Amortization

A method of evenly spreading the cost of an intangible asset over its useful life.

Bond Premium Amortization

The gradual expense recognition over time of the premium paid above the par value for a bond.

Interest Expense

The cost incurred by an entity for borrowed funds, reflected as a charge against earnings.