Which of the following statements accurately brings out the difference between advertising and publicity?
A. Advertising utilizes paid media, whereas publicity relies on unpaid media.
B. While advertising is primarily aimed at business customers, publicity is typically aimed at final consumers.
C. While the Federal Trade Commission (FTC) can regulate a firm's publicity efforts, it cannot regulate its advertising campaigns.
D. For most promotion objectives, advertising offers a lower cost and a more effective approach than publicity.
E. Advertising depends on owned media, whereas publicity depends on earned media.
Answer: A
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In which one of the following instances is supplier bargaining power and leverage not weakened?
A. when the item being supplied is a commodity B. when the buying firms purchase in large quantities and thus are important customers of the suppliers C. when the items purchased from suppliers are in short supply D. when the cost of switching from one supplier to another is low E. when industry members pose a credible threat of backward integration into the business of suppliers
Adam moved into an apartment complex. The rules of the complex prohibit unmarried men and women from living together in the same apartment. When Adam's friend, Diane, moved into the apartment he was served with eviction papers. Adam claims the apartment complex is violating his constitutional rights since it allows married couples to live together. Is Adam right?
a. Yes. His equal protection rights have been violated. b. No. His fundamental right of cohabitation has not been violated. c. Yes. He and Diane are being treated differently than married couples. d. No. Constitutional protections do not extend to privately-owned apartment complexes.
If a firm's managers want to maximize stock price, it is in their best interests to operate efficient, low-cost plants, develop new and safe products that consumers want, and maintain good relationships with customers, suppliers, creditors, and the communities in which they operate.
Answer the following statement true (T) or false (F)
[The following information applies to the questions displayed below.] Gilligan Corporation was established on February 15, Year 1. Gilligan is authorized to issue 500,000 shares of $6.00 par value common stock. As of December 31, Year 3, Gilligan's stockholders' equity accounts report the following balances: Common stock, $6 par, 500,000 shares authorized, 55,000 shares issued and outstanding?? $330,000 Paid-in capital in excess of par - Common?? 440,000 $770,000 Retained earnings 1,400,000 Total Stockholders' Equity $2,170,000 At the end of Year 3, Gilligan decides to issue a 5% stock dividend. At the time of issue, the market price of the stock was $22 per share.What is the number of shares outstanding after the stock dividend
is issued? A. 55,000 B. 525,000 C. 57,750 D. 52,250