The Internal Controls of a Business Are Designed to Reduce

question 91

True/False

The internal controls of a business are designed to reduce the probability of occurrence of fraud.

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Definitions:

Wheeler-Lea Act

The federal law of 1938 that amended the Federal Trade Commission Act by prohibiting unfair and deceptive acts or practices of commerce (such as false and misleading advertising and the misrepresentation of products).

Misleading Advertising

Promotional activities that intentionally or unintentionally deceive or misguide consumers regarding the nature, qualities, or benefits of a product or service.

Clayton Act

A U.S. legislation enacted in 1914 designed to enhance antitrust laws by prohibiting certain actions that could lead to anti-competitive practices.

Price Discrimination

The strategy of selling the same product or service at different prices to different groups of consumers, based on their willingness to pay or other factors.