Which sales promotion offers prizes based on chance drawing?

The answer is correct because a sweepstakes is a type of sales promotion that awards prizes based on a random drawing from among participants. The key characteristic of a sweepstakes is that entry is typically free, and winners are selected purely by chance, making it appealing for promotional efforts because it encourages broad participation without requiring a purchase.

In contrast, a contest usually involves a competition where participants are required to demonstrate skill or knowledge to win. A raffle, while similar to a sweepstakes in that it involves chance, often requires a purchase of tickets to enter, making it somewhat different from a traditional sweepstakes. A lottery typically involves a regulated system of ticket sales and draws, which also distinguishes it from a standard sweepstakes where entry is usually free and designed primarily for promotional purposes.