A Food Producer Inadvertently Labelled a Batch of a Food

question 20

Multiple Choice

A food producer inadvertently labelled a batch of a food product incorrectly,indicating it was sulphate-free when sulphate was a standard ingredient.A number of incidents involving severe allergic reactions resulted in the product's removal from shelves and fines levied.What business function did this legal risk rise from?

• A) labelling
• B) production
• C) marketing
• D) advertising

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Definitions:

Loanable Funds

Loanable funds denote the money available for borrowing in the financial markets, influenced by savings and demand for loans.

Demand Shifts

Changes in consumer desire or preference that cause the demand curve to move either to the right (increase) or left (decrease).

Real Exchange Rate

A measure that compares the relative price of a basket of goods in two different currencies, adjusted for inflation.

Surplus

The amount by which the quantity of a product or service available exceeds the quantity demanded at the current price.