Section 5 of the FTC Act Normally Is NOT Violated

question 24

Multiple Choice

Section 5 of the FTC Act normally is NOT violated when sellers make:

• A)deceptive omissions from their advertisements.
• B)exaggerated sales talk in their advertisements.
• C)false or misleading claims of an implied nature.
• D)unfair claims,even if they are substantial.

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Definitions:

Dividend Increase

An action by a company to raise the amount of dividends paid to its shareholders.

Dividend Growth Rate

The annualized percentage rate of growth that a company's dividend undergoes over a period of time.

Required Rate of Return

The minimum return an investor expects to receive on an investment, considering its risk level.

Current Stock Price

The price at which a specific stock is trading on the stock market at any given time.