Marketers Who Are Aware That Consistent Investment Spending Is a Key

question 15

Multiple Choice

Marketers who are aware that consistent investment spending is a key factor in advertising are:

• A)more likely to cut advertising budgets to fund price promotions.
• B)less likely to invest in advertising than discounting.
• C)less likely to raid their advertising budgets to increase earnings.
• D)more likely to view advertising as a discretionary cost.

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Definitions:

Net Income

The total earnings of a company after all expenses and taxes have been deducted from total revenue, often referred to as the bottom line.

Accounts Receivable

Money owed to a company by its customers for products or services that have been delivered but not yet paid for.

Indirect Method

A method of reporting cash flows from operating activities where net income is adjusted for changes in balance sheet accounts to arrive at cash provided by or used in operating activities.

Net Income

The total profit of a company after all expenses and taxes have been deducted from total revenue, indicating the actual profit earned.