Caveat Emptor Refers to

question 93

Multiple Choice

Caveat emptor refers to

• A) The legal concept of "let the buyer beware," which was pervasive in the American business culture prior to the 1960s.
• B) The marketing concept of "be first or be last," implying that the first company to the marketplace wins.
• C) The Latin term meaning that "all is fair in love and war," an attitude that was held by most marketers prior to the 1990s.
• D) The legal concept of "such is life," which created many illegal as well as legal but unethical business practices during the 1980s.
• E) The Latin phrase meaning "empty promises," which was a charge placed upon many firms during the period after WWII when products failed to meet their marketing claims.

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Definitions:

Volatility

In financial contexts, volatility refers to the degree of variation of a trading price series over time, which is usually measured by the standard deviation of log returns.

Call Increases

Typically refers to an increase in the price of call options, which are contracts that give the holder the right to buy the underlying asset at a specified price.

Wasting Asset

An asset that inexorably declines in value over time due to physical deterioration or the expiration of intangible rights.

Put Option

An option that gives the owner the right, but not the obligation, to sell an asset.