Which of the Following Is NOT True of the Signing

question 85

Multiple Choice

Which of the following is NOT true of the signing of a FTC consent decree?

• A)A hearing will be held by an administrative judge.
• B)By signing it, a firm agrees to end the deceptive advertising practice.
• C)After signing it, if the advertiser continues running the deceptive advertising, it can be fined $10,000 per day.
• D)Most complaints are settled in this way.
• E)If the advertiser refuses to sign, the FTC will issue a cease and desist order.

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Definitions:

Decision Making

Selecting a course of action from competing alternatives.

Avoidable Cost

Costs that can be eliminated if a particular decision is made, such as discontinuing a product or service.

Sunk Cost

A cost that has already been incurred and that cannot be changed by any decision made now or in the future.

Consistency

Refers to the accounting principle that mandates the same accounting methods and procedures to be followed from one financial period to another to ensure comparability of financial statements over time.