One Ad for a Drug Used to Overcome Male Erectile

question 82

Multiple Choice

One ad for a drug used to overcome male erectile dysfunction depicted an old man in a nursing home acting like a young man chasing after several women at once.The ad was not allowed to air on the major television networks of NBC,CBS,and ABC.The ad did not contain any deceptive or unsubstantiated claims,so there was nothing untruthful in the ad.Furthermore,the ad followed the guidelines given by the FDA regarding broadcast advertising by indicating the major side effects and referring to a magazine ad for more information.Which of the following best explains why the ad was not allowed to air?

• A)Stereotypes of "dirty old men" are not allowed in any advertising.
• B)The National Advertising Division determined the ad was distasteful and disallowed it from being aired on television.
• C)Not all advertising is given the same protection under the First Amendment of the Constitution.
• D)The media can reject ads that violate their standards of good taste.
• E)The behavior portrayed by the old man did not reflect the real behavior of the individual involved.

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Definitions:

Required Rate of Return

The minimum return an investor expects to achieve by investing in a particular asset or project, considering the risk involved.

Net Present Value

A method in capital budgeting that calculates the present value of cash flows generated over a project's life, subtracting the initial investment.

Payback Technique

A method of investment appraisal that calculates the time required to recoup the cost of an investment.

Internal Rate of Return

A financial metric used to evaluate the profitability of an investment, representing the interest rate at which the net present value of costs and benefits of the investment are equal.