Which of the Following Statements About State Regulation of Advertising

question 53

Multiple Choice

Which of the following statements about state regulation of advertising is true?

• A)Many states have adopted laws similar to those of the Federal Trade Commission as a basis for dealing with false and misleading advertising.
• B)As the federal government became less involved in the regulation of advertising during the 1980s,many states became more active in enforcing their laws regarding false or misleading advertising.
• C)Many states have prosecuted national advertisers for misleading or deceptive advertising in recent years.
• D)Many states have modeled their laws on Printers Ink statutes written in 1911.
• E)All of the above statements about state regulation of advertising are true.

---

Definitions:

Assets Test

A financial measure used to determine eligibility for certain government benefits based on the value of one's assets.

Profit Test

A determination to assess the viability and profitability of a project or investment by comparing costs against potential benefits.

Reportable Segments

Parts of a business that have separate financial information available, which can be evaluated regularly by the company's chief operating decision-maker in deciding how to allocate resources and in assessing performance.

Profits

The financial gain remaining after subtracting all expenses, taxes, and costs from total revenue.