If an Advertising Statement Is Technically True but May Tend

question 59

True/False

If an advertising statement is technically true but may tend to mislead,the FTC can still require a company to stop using it.

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Definitions:

Dividend Payment

Distribution of a portion of a company's earnings to its shareholders, typically in the form of cash or additional stock.

Employee Stock Options

A type of compensation given to employees, offering the right to purchase company stock at a specific price within a set period.

Call Options

Financial contracts giving the buyer the right, but not the obligation, to buy a stock, bond, commodity, or other asset at a specified price within a specific time period.

Preferred Stock

A class of ownership in a corporation with a fixed dividend that is paid before any dividends are paid to common stockholders, typically without voting rights.