A Los Angeles ad agency goes public, and before long it is being pressured to show more profit.What are the two quickest routes to the short-term profits demanded by shareholders of publicly traded ad agencies?

Question

Quizplus · Accepted Answer

The quickest routes to short-term profits are usually through cost-cutting measures such as firing staff and generating revenue through fees and media buys. Cutting production expenses may affect the quality of work and may not be sustainable in the long run. Soliciting funds from investors may be a viable option, but it may not generate immediate returns. Increasing creativity and charging higher rates may lead to long-term profits, but it may not be the most effective way to address short-term pressures. Therefore, option B seems to be the best choice.

A Los Angeles Ad Agency Goes Public, and Before Long