Which of the Following Expresses a Valid Conclusion About the Truthfulness

question 41

Multiple Choice

Which of the following expresses a valid conclusion about the truthfulness of advertising?

• A)It is difficult to determine what constitutes untruthful or misleading advertising since deception can occur in subtle ways.
• B)One of the major complaints about advertising is that many ads are misleading.
• C)Most advertisers do not intentionally mislead or deceive consumers,but some will test the limits of various rules and regulations to gain a competitive advantage.
• D)National advertisers are not likely to risk consumer trust and confidence by intentionally deceiving them.
• E)All of the above statements express a valid conclusion about the truthfulness of advertising.

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Definitions:

Corporation

A legal entity that is separate from its owners, with its own rights and responsibilities, allowing it to own property, sue or be sued, and enter contracts.

Board of Directors

A group of individuals elected to represent shareholders and oversee the management and major decisions of a corporation.

Sarbanes-Oxley Act

U.S. legislation enacted in 2002 to protect investors from the possibility of fraudulent accounting activities by corporations.

Securities Commission

A government agency or body responsible for regulating the securities industry and protecting investors.