A Promotion Such as a Contest or Sweepstakes Can Avoid

question 54

Multiple Choice

A promotion such as a contest or sweepstakes can avoid being considered a lottery by:

• A)conducting the contest or sweepstake only at the regional level and not national level.
• B)providing full disclosure.
• C)not requiring consideration to be present.
• D)publishing the odds of winning.
• E)ensuring puffery is avoided in advertisements.

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Definitions:

Costs

Costs refer to the expenditures incurred by a business in the process of generating revenues.

Unit Contribution Margin

The difference between the selling price per unit and the variable cost per unit.

Fixed Costs

Expenses that remain constant regardless of the amount of production or sales, including rent, wages, and insurance premiums.

Mixed Cost

A cost that contains both fixed and variable components and changes with the level of output but not directly in proportion.