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Business Studies

Selling Concept

Statement : S...

Question

Statement : Should so much money be spent on advertisement ?
Arguments :
I. Yes. It is an essential concomitant in a capitalist economy.
II. No. It leads to wastage of resources.

A

Only argument I is strong

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B

Only argument II is strong

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C

Either I or II is strong

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D

Neither I nor II is strong

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E

Both I and II are strong

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Solution

The correct option is B Only argument I is strong
Should so much money be spent on advertisement ?
Advertisement is a means used by company to tell customers about product related specifications so that they can buy it.
It is an important form of marketing.
So, Argument I is true in this context.
It does not lead to wastage in fact it leads to gain of profit.
Hence, Option A is correct.

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