1. According to the Adapting to Change box, social celebrity-driven mobile games are not making as much money as app developers expected.

True or False

2. An investment banking firm assists corporations in selling the new security issue.

True or False

3. Technology has changed the emphasis of promotion from promoting to customers to working with customers.

True or False

4. A full-length television program made to look like a television show but devoted exclusively to promoting goods and services is called an infomercial.

True or False

5. Financial accounting involves activities such as preparing budgets and measuring production costs.

True or False

6. The total annual expenditures on advertising in the United States

Multiple Choice

• peaked last year at approximately $700 billion.

• has declined significantly as firms utilize different online promotional opportunities.

• is about $420 billion.

• has been capped at $300 billion by a government stimulus package.

7. Economic growth and the creation of jobs depend on the availability of money.

True or False

8. Capital items are industrial goods that are expensive and last a long time.

True or False

9. The prospectus is summarization of the results of detailed financial documents that a firm files with the SEC prior to being given approval to issue securities.

True or False