Wild Things,Inc

question 38

Multiple Choice

Wild Things,Inc. (WTI) ,in its ads,makes claims about its products that are obvious exaggerations and claims that are false but appear to be true. WTI may be subject to sanctions for

• A)neither the false claims nor the obvious exaggerations.
• B)only the false claims.
• C)only the obvious exaggerations.
• D)the false claims and the obvious exaggerations.

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Definitions:

S Corporations

Corporations that elect a special tax status to pass income, losses, deductions, and credit through to their shareholders for federal tax purposes.

Separate Legal Entity

A legal structure that is distinct and independent from its owners, allowing it to own assets, incur liabilities, and enter into contracts.

Shareholders

Individuals or entities that own shares in a corporation, giving them ownership stakes and sometimes rights to dividends and to vote on corporate matters.

Uniform Partnership Act

A set of laws adopted by states that governs the formation, operation, and dissolution of partnerships.