When the Federal Trade Commission Determines That an Ad Is

question 29

Multiple Choice

When the Federal Trade Commission determines that an ad is deceptive or unfair, it can:

• A) require the advertiser to run cooperative advertising.
• B) convince the advertiser to sign a consent decree.
• C) require the advertiser to reimburse consumers who bought the product.
• D) force the firm that ran the deceptive ad to get "advance clearance" on all future ad campaigns.
• E) place a federal representative in the deceptive firm's advertising department to oversee future ad campaigns.

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Definitions:

Credit Policies

Credit policies refer to the guidelines and standards set by a business regarding the extension of credit to customers, including terms, conditions, and criteria for creditworthiness.

Monthly Rate of Return

The percentage gain or loss on an investment over a one-month period.

Variable Cost

Expenses that change in proportion to the activity of a business.

Net Present Value

The calculation of the present value of an investment's expected earnings, minus the initial capital outlay.