Which of the following statements is TRUE of the factors that affect an advertising budget?
A) High-market-share brands usually require proportionately high advertising expenditure as a percentage of sales to maintain share.
B) Brands in less-differentiated or commodity-like product classes require less advertising to establish a unique image.
C) New products typically merit large advertising budgets to build awareness and to gain consumer trial.
D) In a market with few competitors and moderate advertising spending, a brand must advertise more heavily to be heard.
E) Established brands usually are supported with high advertising budgets, measured as a ratio to sales.
C
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Twin Cities Corp had sales during the year of $15,000,000 and an average accounts receivable of $5,000,000 . Its accounts receivable turnover ratio is 0.33 times
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