ABC Company Knew That Its Customers Were Interested in Environmentally

question 26

Multiple Choice

ABC Company knew that its customers were interested in environmentally friendly business practices,so it began marketing all of its products as environmentally friendly because they were made with all-natural ingredients,even though ABC's plant was one of the worst polluters in town.The new term for this practice is

• A) deceptive advertising.
• B) greenwashing.
• C) environmental exploitation.
• D) virtual greening.
• E) enviromarketing.

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Definitions:

Gross Profit

The difference between revenue and the cost of goods sold before deducting operating expenses, indicating the efficiency of core operations.

Merchandising Profit

The profit a company makes from buying goods at wholesale and selling them at retail.

Company

An entity engaged in commercial, industrial, or professional activities, either for profit or as a nonprofit organization.

Single-Step Income Statement

An income statement that shows only one step in determining net income.