The FTC Can Issue a Cease-And-Desist Order, Which Is an Injunction

question 2

Multiple Choice

The FTC can issue a cease-and-desist order, which is an injunction to

• A) report to the FTC immediately.
• B) stop doing whatever caused the complaint.
• C) appear before the courts.
• D) pay for damages caused by negligence of the firm.
• E) close down the firm until further notice.

---

Definitions:

Net Present Value

A method used to evaluate the profitability of an investment, calculating the difference between the present value of cash inflows and outflows.

Operating Cash Flows

The cash generated from the normal operations of a business, such as revenue from sales after operating expenses are deducted.

Fixed Assets

Long-term tangible assets that are used in the operations of a business and are not expected to be consumed or sold within a year.

Salvage Value

The projected remaining worth of an asset upon reaching the end of its serviceable life.