Which of the Following Statements Is True of the Wheeler-Lea

question 33

Multiple Choice

Which of the following statements is true of the Wheeler-Lea Act of 1938?

• A) It makes it mandatory for businesses to inform consumers of possible negative consequences of using their products.
• B) It provides organizations with guidelines on the type of gifts that are considered acceptable.
• C) It bans the sale of impure, improperly labeled, falsely guaranteed, and unhealthful foods, drugs, and cosmetics.
• D) It ensures that creditors let consumers know how much they are paying in finance charges and interest.
• E) It sets a deadline for insiders to report any trading in their companies' securities to within two business days after the execution date of the transaction.

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Definitions:

Present Value Factor

A multiplier used to calculate the present value of a future amount of money or stream of payments.

Straight-Line Depreciation

A method of allocating the cost of a tangible asset over its useful life in a linear fashion.

Desired Rate

Typically refers to a target interest rate set by an individual or entity, often relating to the return on investment or loan interest rates they wish to achieve.

Average Rate of Return

A measure of the annual return on an investment, calculated by dividing the average annual profit by the initial investment cost.