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Brandon Is a College Junior Who Has Been Working Out

question 29

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Brandon is a college junior who has been working out and has become interested in supplementing his diet to enhance his strength and gain more muscle mass. His friends tell him about several weight gain supplements. One of the supplements is called " Muscle Mass Magic. " It has also been heavily advertised on Internet sites and in some popular fitness magazines. The product has also been endorsed by a professional wrestler and football player who said, " It worked for me; it will work for you . " Brandon is interested in trying the product and makes a trip to his local dietary supplement store. After talking with a store employee, who calls himself a nutritionist, Brandon decides " Muscle Mass Magic " is the perfect product to help him reach his fitness goals. After returning home and examining the product ' s label further, Brandon realizes that there are several ingredients in the supplement of which he is uncertain.
Why should consumers be suspicious of the product?

Definitions:

Investment Activity

Transactions involving the purchase and sale of long-term assets and other investments not generally considered cash equivalents or traded in active markets.

Cash Flow

The gross amount of cash moving in and out of a commercial venture, significantly altering its liquidity status.

Net Cash Flow

Net cash flow is the measure of financial performance calculated as the difference between cash inflows and cash outflows over a period of time.

Debt/Equity Ratio

A financial tool that determines the equity-debt mix used in the procurement of company assets.