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Scenario 6-5 Joe Rowan Walked into Pederson Toyota One Day and Began

question 52

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Scenario 6-5
Joe Rowan walked into Pederson Toyota one day and began looking at price stickers on Toyota Camrys. He was interested in that model because he had seen a number of television and magazine ads describing the car's features and reputation for reliability. After closely examining the stickers, Joe noticed a line that said "Dealer Promotion Allowance - $125.00." Joe asked a salesperson what that meant. The reply was that it was a charge that helped the dealership pay for local advertising to encourage consumers to shop at that particular dealer. After further discussion, Joe learned that almost 5% of the cost of the vehicle comes from expense for national and local advertising.
-(Scenario 6-5) Joe Rowan saw a television ad that stated the Toyota Camry was "The world's best car for reliability." Some critics of advertising argue that the use of such absolute superlatives in advertising is ____.

Definitions:

Partnership

A legitimate business arrangement where two or more partners share both management responsibilities and profits.

Stockholders

Individuals or entities that own shares of stock in a corporation, granting them certain rights and privileges.

Internal Controls

Procedures and policies implemented by a company to safeguard its assets, enhance the reliability of its accounting records, ensure compliance with laws, and achieve effective and efficient operations.

Fraud Triangle

A model explaining the factors that cause someone to commit occupational fraud, consisting of opportunity, pressure, and rationalization.