Brandon Is a College Junior Who Has Been Working Out

question 15

Multiple Choice

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.
Advertisements that use the professional football player and wrestler to endorse the product are _____.

• A) breaking the law by misleading consumers
• B) using testimonials to promote the product
• C) a guarantee to consumers that the product will work
• D) showing that the product is safe to use
• E) proof that the sports stars are using the product themselves

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Definitions:

Accounts Payable

This is the amount of money that a company owes to its suppliers or creditors as a result of purchasing goods or services on credit.

Retention Ratio

The segment of net earnings kept by a corporation instead of being paid out to its shareholders in the form of dividends.

Net Income

It represents the total earnings of a company after subtracting all expenses, taxes, and losses from the total revenue.

Cash Dividends

Payments made by a company out of its earnings to its shareholders, typically in the form of cash, representing a portion of the company's profits.