Which of the Following Statements Describes the NAD/NARB Review Process

question 45

Multiple Choice

Which of the following statements describes the NAD/NARB review process?

• A)If a case is not resolved to its satisfaction,the NARB has the power to order an advertiser to stop running its ads.
• B)If the NAD and an advertiser fail to resolve an advertising controversy,either party can appeal the case to the NARB.
• C)Advertisers who participate in the full process of an NAD investigation,and NARB appeal often do not abide by the panel's decision.
• D)Most advertising cases investigated by the NAD are resolved without being sent to the NARB.
• E)Advertisers who do not comply with the NAD/NARB review process will find themselves encumbered with a class action lawsuit.

---

Definitions:

Operating Cycle

The time it takes for a company to purchase inventory, sell products, and collect cash from customers.

Classified Balance Sheet

A balance sheet that organizes assets and liabilities into subcategories like current and long-term.

Unclassified Balance Sheet

A balance sheet that presents assets and liabilities without categorizing them into long-term or short-term classifications.

Current Ratio

A company's short-term financial health, specifically its ability to settle obligations due within a year, is gauged by this ratio, which is the quotient of current assets and current liabilities.