Which of the following is a disadvantage of being a sponsor?

• A. Sponsorship can be very expensive
• B. Improves image
• C. Tax benefits
• D. Corporate boxes for organizers

Answer: (A)

The main idea here is that sponsorship involves a large financial commitment. Paying for rights, plus ongoing activation and related expenses, can add up to a substantial cost. If the event doesn’t attract the right audience or the sponsor’s activation isn’t effective, the return on that investment may be limited, making the expense the main downside.

The other points describe common benefits of sponsorship: it can improve a brand’s image, there may be tax advantages in some places, and sponsorship packages often include hospitality options like corporate boxes for entertaining clients or staff. These are typically viewed as positives rather than disadvantages.