Why is advertising considered an investment not an expenditure?

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Though advertisement is shown in the profit and loss a/c and not on the balance sheet, it is an investment from the business point of view because it impacts the business for a long time. We must not forget about the consumer's brand loyalty -- once a consumer becomes brand loyal, he can remain loyal for a long time. But on the other hand, expenditures cannot attract consumers.

A characteristic of investments is that they add something to the value of the product. But most expenditures are unwanted, and every firm wants to reduce them. Overall, since advertisement can help a business to increase product demand, it can be an investment, not merely an expenditure.
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Is cash flow from investment the same as net capital expenditure?

It depends on the line items that are recorded to arrive at the cash flow from investment figure. Certain line items might not necessarily qualify for the computation of net capex, for example if a company records say a loan to one of its associate companies in the cash flow from investment segment. (MORE)

Are advertisements considered an offer?

Generally, advertisements are not considered offers. In contract doctrine, an offeror must direct his or her offer at an identifiable offeree. The offeree doesn't have to be just one person; it can be a group of people. The advertisement must also determine specific terms that will be binding if acc (MORE)

Best 2008 investment bentonville media advertising urtv network?

Bentonville Media & Advertising When BMA launched in 2005, its prospects did not look bright. As a startup Cable-advertising network, it would have to compete with BET, TV One, Qvc and how feasible is that? But BMA will defie the odds. While Others is just four months into testing new version of its (MORE)

What should you consider when advertising?

You should consider the demographic of the market as well as the demand for the product you are advertising. This is of course just the beginning basics, but it boils down to message acceptance and absorption for your market, so whatever steps are needed to find out what appeals to that market will (MORE)

Is an advertisement considered an offer?

No, in the US, it is considered an invitation to bargain, which is an action by one party which may appear to be a contractual offer but which is actually inviting others to make an offer of their own.

What are expenditures?

Expenditures are the processes of spending money by an individual or business entity . The expenditures may be revenue or capital in nature. The revenue expenditure is recurring in nature while the capital expenditure is non recurring in nature. The former maintains an asset while the latter creates (MORE)

Are advertising expenses is considered an asset or liability?

it is an asset Alternate answer Advertising expenses enhance the brand name of a company. The market value of a company might very well increase as a result of advertising. Accounting principles (US GAAP and IFRS) nevertheless do not recognize marketing expenditures as an asset, because the fut (MORE)

What is considered a risk investment?

Investment risk is determined by the investor. You need to ask the investor what risk they are prepared to take. If they wish to take no risk and want to guarantee their investment then there investment risk has been determined. Therefore it is likely their money will be invested in a building socie (MORE)

Why are bonds considered to be a safe investment?

Because unless the company defaults on the bond, a bond features three knowns: how much it pays, when it pays and how many times it pays. \n. \nLet's use the simplest kind of bond to calculate: a five-year $1000 zero-coupon bond sold at a 25 percent discount. This bond will sell at $750--25 percent (MORE)

Is Advertising is wasteful expenditure for any business?

i think advertisement is not the wasteful expenditure because if u advertise ur product then ur product will be sold heavily in the market. if ur the new comer into the business and u dont know how to sell ur product then if u advertise ur product then it will reach to the coustmers very easily and (MORE)

What does it mean to say that money is invested in advertising?

Investing means purchasing an item with the hope that in the future it will lead to greater monetary rewards. With regards to advertising, this means that companies buy an advertising campaign with the hope that this will inspire consumers to purchase it and thus lead to future profit. Advertising c (MORE)

Is all advertising an investment?

Yes,since money is spent.whether it is done for awareness,image building or reinforcement it creates results that is if well adminstered.

In advertising- what would be considered a compelling message?

In Your own words and in what you are trying to sell . "You may not want this product - or even need this product - BUT can you afford not to have it" . Be honest .. stick to your word .. and don't BS . I know it's worked for many - Keep it simple - To the point - Honest - AND especially what doe (MORE)

What are four guidelines to consider before investing in real estate?

Why 4? . Have a plan, make a plan, stick to the plan. Rental, rehab, flip, lease, sell? . Get a good deal at 50% of the value of the property. . Know what you are doing through research, mentorship, paid classes, or work under someone for a while. . Don't use your own money.

If an Attorney advertises is it considered solicitation?

Attorney regulations are individual to each state. So the answer may differ depending upon which state you are referencing. I doubt anyone knows all 50 states w/o researching it. Generally speaking, the practice of absolutely refusing to allow attorneys to advertize is fading away. But there are st (MORE)

Advertisement is an investment or expenditure?

As per my knowledge, Basically, In investment we expect more output than input as timepasses. for example, if you invest in land today, you expect moremoney from that land after some years. and generally it is for longterm. In expenditure you expect same output as per your input. forexample When y (MORE)

How is real estate considered an investment?

Real estate is a commodity that people "invest" money in. Investment by definition is the "laying out money or capital in an enterprise with the expectation of profit". With respect to real estate investors pay for the ownership rights in real property with the expectation of achieving a profit. Pro (MORE)

What factors should advertisers consider in deciding which newspaper to advertise in?

The types of people buying the paper (age, income, political views, where they live), the total distribution of the paper, price of the advertisement vs profits from the advertisement. You wouldn't want to place an add for lawn care services in a paper whose primary readership is senior citizens in (MORE)

Is buying jewelry in India considered an investment?

It depends on what jeweller you go to as there are some that will sell fakes. One has to visit a high class jeweller there to be sure of puchasing real gems, real gold. They have some lovely jewellers in Andhra Pradesh Guntur DT. The jewellery would then be an investment if this was then sent to be (MORE)

Why is a certificate of deposit considered a safe investment?

Yes a Certificate of Deposit is a safe investment because: a. The bank will return your money anytime you want b. The value of your investment will never go down c. The money will earn you a decent interest rate safely d. The returns are guaranteed.

Why is investment consider to be riskier than saving?

Investment becomes costlier, when funds are invested in a companywith hollow promises and returns are thus meagre, in comparison toinvestments in a company of repute. Whereas savings in bank FD orLIC policies are far less riskier and the return or outcome is wellknow at the time of investment itself (MORE)

Is gold considered a precious metal for investment?

Yes it is but, as with any investment you need to be careful. Over the last few years gold has increased remarkably in value. Now so many people are trying to make money on the trend that it is probably in for a sharp decline in the near future. Talk to a professional investor that deals in all kind (MORE)

Is website advertising a good investment?

Depending on what your goal is for the advertising, it may be a good investment. Website advertising may generate traffic to your site, but may not necessarily result in sales. Another factor to consider is that people are becoming blind to banners and online advertising. If you have the budget for (MORE)

Should one consider investing in natural gas futures?

Natural gas is a risky investment. Although it is depended up on greatly, it is also very plentiful. We have more than enough natural gas to last the next 100 years. Currently, natural gas is not benefiting from inflation.

What is considered socially responsible investing?

"The purpose of socially responsible investing is to maximize financial return while providing social good. Sometimes socially responsible groups aim for investing that benefits the environment, consumers, human rights, and minorities. They also tend to avoid investments related to items such as alc (MORE)

Why you consider training as a investment?

Think of it as upgrading yourself. The more you know, the more you can sell yourself for. Your knowledge is your best asset. its because you invest in your self to grow muscles or to become better at whatever you are training for

Why advertisers need to quantify their PPC ROI and what are the steps in calculating your PPC return-of-investment?

They need to, in order for them to know if they are indeed increasing their leads and sales, through effective conversions. Calculating the ROI of every PPC ad will give marketers the assurance that ads are working and generating profit for the business. The goal is always to maximize profit and red (MORE)

Why is an investment grade bond is considered a safe investment?

Investment grade bonds are considered a safe investment becausethere is generally only a small risk of loss of principle when theyare issued by highly rated corporations, U.S. government agenciesor by the United States government, especially compared to higherrisk investments like stocks. There is a (MORE)

Why should someone consider currency investing over other types of investing?

With daily news bulletins reporting on the gloomy global credit crunch it can be difficult to know where exactly to put your money. While domestic markets might show an ever-descending decline in the retail and property sector, overseas currency markets remain buoyant. With appropriate independent f (MORE)

What time frame is considered a short term investment?

A short term investment is an investment which matures in, or is held for, one year or less. Short term investments usually involve less uncertainty than long term investments, and examples include commodities, options and securities.

When would a private investment be considered?

A private investment would be considered when a person or company has assets they would like to invest privately. Generally a private investment would be made in a non-public company.

Is Advertising is wasteful expenditure?

Advertising on the whole is not wasteful, it brings in business. However, not all advertising campaigns are equally successful, so in some cases advertising is wasteful.

When choosing where to invest your savings you should consider?

Before investing your savings it is important to consider the level of risk you are willing to take and your investment time horizon. A saver who does not want to take any risk with his money and wants the money immediately available for an emergency or a future planned expenditure should keep the (MORE)

Which is an essential requirement for someone considering investing in Bahrain?

Bahrain's position at the heart of the Gulf makes access to everymarket in the Middle East quick and efficient - by road, air andsea. By car, Saudi Arabia, the Gulf's largest economy, is less thanan hour's drive away and Riyadh, its business hub, is a four hourdrive. By plane, the United Arab Emirat (MORE)

What are some of the key factors to consider when investing in stocks?

You might be one of the many looking to make some money byinvesting your savings in the stock market. It is important for youto know people do burn their fingers in the stock market. There areno rules which can guarantee you to generate great returns from thestock markets, however, there are some s (MORE)