Relating to the Economics in Practice on Page 360: Which

question 134

Multiple Choice

Relating to the Economics in Practice on page 360: Which of the following is an example of an advertisement in which the fact that something is not mentioned indicates that the product is unlikely to be desirable?

• A) an advertisement for hot dogs that mentions that it meets certain religious dietary requirements but fails to explain those requirements in a way that would be understood by most people
• B) an advertisement for a sneaker that mentions the endorsement of one sports star but fails to mention the sports stars that have endorsed competing products
• C) an advertisement for a 30-year old lawn tractor that mentions the color of its paint and the number of cup holders it has but makes no mention of the condition of its engine
• D) an advertisement for ice cream that describes the variety of flavors available and the way it tastes but makes no mention of the ice cream's nutritional content

Recognize the implications of cumulative and noncumulative dividends for stockholders and the corporation.

Understand the legislative and procedural aspects of issuing stock, including the rights to dividends and the process for calculating dividends.

Define and identify organization costs and their treatment in financial statements.

Acknowledge the rights of stockholders and the legal responsibilities of corporations regarding dividends.

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Definitions:

Checking Account

A bank account that allows the depositor to withdraw funds using checks or electronic debit, traditionally used for daily transactions.

Stale Check

A check that has not been cashed or deposited within a specified time, usually six months, making it void or invalid.

Bank

A financial institution that accepts deposits, offers various accounts, provides loans, and offers other financial services to individuals and businesses.

Restrictive Endorsement

A limitation placed on a check specifying the conditions under which it can be paid or transferred, often used for security purposes.