Which of the Following Statements Is True About the Claims

question 97

Multiple Choice

Which of the following statements is true about the claims made by a seller about his or her products?

• A) The burden of accuracy of the claims made by the seller is on the management.
• B) Salespeople are required by law to exercise reasonable care in formulating claims.
• C) Misrepresentation of product benefits cannot lead to product liability if the seller makes a false claim thinking it is true.
• D) A seller cannot be legally held for unintentionally making false claims or not delivering on his or her claims.
• E) A seller is not allowed to use his or her discretion in making claims.

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Definitions:

Combined

In financial terms, refers to the aggregation of financial data from several departments or business entities within a corporation to provide a complete financial profile.

Financial Statement Presentation

The method by which a company's financial data is arranged and reported to external parties, typically including balance sheets, income statements, and cash flow statements.

Disclosure

The act of making information known, especially information that is of interest to shareholders and potential investors regarding a company's performance and operations.

Segment Information

Details about the different operational or geographical segments of a company, required in financial reports to give insight into performance and risks.