Recently the FTC Investigated Bloggers Who Were Being Sponsored to Pitch

question 131

Multiple Choice

Recently the FTC investigated bloggers who were being sponsored to pitch products. The FTC ruled that the blogger must disclose any type of compensation that it received. This is an example of a:

• A)cease and desist order.
• B)consent order.
• C)corrective advertising order.
• D)trade regulation ruling.

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Definitions:

Cost Method

An accounting approach used for recording investments, where the investment is recorded at its acquisition cost without any subsequent change in its value unless there is an impairment or disposal.

Equity Method

An accounting method used to record investments in which the investor has significant influence but not full control.

Total Dividends

The total sum of money paid to shareholders out of a company's earnings.

Equity Method

An accounting technique used to record an investment in another company, where the investment is initially recorded at cost and subsequently adjusted to reflect the investor's share of the investee's profit or loss.