Match List-I with List-II: List-I | List-II | (A) Paid form | (I) The… | Business Studies CUET question

Match List-I with List-II:

List-I | List-II |

(A) Paid form | (I) The overall cost gets spread over numerous communication links, so the per-unit cost of reach comes low. |

(B) Economy | (II) Maintaining good public relations is much cheaper than advertising and direct mail. |

(D) Lowers promotion costs | (IV) The money spent on advertising is passed on to the buyers in the form of high prices. |

Choose the correct answer from the options given below:

Answer & explanation

Correct answer: option 3

The correct answer is Option (3) → (A)-(III), (B)-(I), (C)-(IV), (D)-(II)

List-I	List-II	Reason
(A) Paid form	(III) The sponsor has to bear the cost of communicating with the prospects.	Advertising is a paid form of communication, so its cost falls on the sponsor.
(B) Economy	(I) The overall cost gets spread over numerous communication links, so the per-unit cost of reach comes low.	Advertising reaches very many people, so the cost per person reached is low.
(C) Adds to cost	(IV) The money spent on advertising is passed on to the buyers in the form of high prices.	Critics say advertising raises the product’s cost, and buyers pay it in the price.
(D) Lowers promotion costs	(II) Maintaining good public relations is much cheaper than advertising and direct mail.	This is a marketing objective of public relations, which costs much less than advertising.

NCERT (2026-27 Edition): “(i) Paid Form: Advertising is a paid form of communication. That is, the sponsor has to bear the cost of communicating with the prospects.”

“(iv) Economy: Advertising is a very economical mode of communication if large number of people are to be reached. Because of its wide reach, the overall cost of advertising gets spread over numerous communication links established. As a result the per-unit cost of reach comes low.”

“1. Adds to Cost: The opponents of advertising argue that advertising unnecessarily adds to the cost of product, which is ultimately passed on to the buyers in the form of high prices. …”

“(d) Lowers promotion costs: Maintaining good public relations costs much less than advertising and direct mail. However, it requires a lot of communication and interpersonal skills to convince the media to give space or time for the organisation and its product.”