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28 February, 11:41

Is its revenue stream from advertising and equipment sales growing or declining

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  1. 28 February, 12:07
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    Answer: Revenue stream is growing

    Explanation: Advertising has become a promotional tool to aid in revenue increase, since it is the objective of every business to maximize profit through strategic advertising, it will imply that, high sales can only be achieved through an intense advertisement. The level of competition among firms and companies is also increasing the cost of advertisement making the the advertising industry to increase its revenue.

    The sales of equipment is also growing revenue because of the influence of technology on production. Technology has made production faster and cheaper. This has made it relatively cheaper for most firms to adopt than the Labour intensive system. Because of the demand to produce higher goods at cheaper cost, the demand for equipment has also gone up hence, increasing the revenue base for its dealers.
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