In Selecting an Advertising Agency,all but One of the Following

question 59

Multiple Choice

In selecting an advertising agency,all but one of the following issues should be taken into consideration:

• A) company organization.
• B) national responsiveness.
• C) area coverage.
• D) buyer perception.
• E) franchise or company owned status.

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Definitions:

Positive Profit

A financial gain that occurs when the revenues received from business activities exceed the expenses, costs, and taxes needed to sustain the activity.

Scale of Operation

The size at which a company or factory operates, often impacting its production efficiency and costs.

Long Run

pertains to a time period in economics during which all factors of production and costs are variable, allowing for full adjustment to any change.

Diminishing Returns

A principle stating that as one input variable is increased, there will be a point at which the additions of output will begin to decrease, holding all other inputs constant.