Which of the Following Is Part of the FTC Policy

question 377

Multiple Choice

Which of the following is part of the FTC policy statement for determining if a practice is deceptive?

• A) there is a representation or omission of information in a communication to consumers
• B) the deception is likely to mislead a reasonable consumer
• C) the deception is material⎯likely to mislead the consumer to his or her detriment
• D) there is a representation or omission of information in a communication to consumers and the deception is likely to mislead a reasonable consumer
• E) there is a representation or omission of information in a communication to consumers and the deception is likely to mislead a reasonable consumer and the deception is material⎯likely to mislead the consumer to his or her detriment

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Definitions:

Merchandise Inventory

The goods available for sale to customers in retail or wholesale businesses, valued at lower of cost or market value on the balance sheet.

Credit Sales

Transactions where goods or services are provided to a customer with an agreement to pay at a later date.

Operating Expenses

Expenses related to the normal operations of a business, excluding the cost of goods sold.

Direct Labour Budget

A budget that forecasts the expense of direct labor needed to achieve manufacturing targets.