Regarding What a "New Product" Is, Your Text Says

question 108

Multiple Choice

Regarding what a "new product" is, your text says:

• A) a product should be considered "new" if it is new in any way for the company concerned.
• B) that the FTC would not call an existing product new, even if it were changed in a functionally significant way.
• C) there is no legal limit on how long a product can be called "new."
• D) a new product must be totally different before it can be called a "new product."
• E) All of the above.

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Definitions:

Watered Stock

Shares issued by a company at a value much greater than its asset worth, inflating its apparent value without actual backing.

Fair Market Value

An estimate of the market value of a property, based on what a knowledgeable, willing, and unpressured buyer would likely pay to a knowledgeable, willing, and unpressured seller in the market.

Business Judgment Rule

A legal principle protecting corporate directors and officers from liability for decisions made in good faith and in the best interest of the company.

Derivative Action

A lawsuit brought by a corporation’s shareholder on behalf of the corporation against a third party, often an insider of the corporation.