In Deciding Whether an Ad Is Deceptive,today the FTC Basically

question 54

Multiple Choice

In deciding whether an ad is deceptive,today the FTC basically follows

• A)the reasonable consumer standard.
• B)the ignorant/gullible consumer standard.
• C)a "modified" ignorant-consumer standard.
• D)none of these choices.

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Definitions:

Financial Leverage

The use of borrowing to increase the potential return of an investment.

Beta Coefficient

This is a measurement of the volatility of a stock or portfolio in comparison to the market as a whole.

Market Risk

The possibility of experiencing financial losses in investments because of events that impact the whole market or the overall economy.

Corporate Tax Rate

The percentage of a corporation's profit that is paid to the government as tax.