Regarding the Laws That Place Limits on Marketing Activity

question 23

Multiple Choice

Regarding the laws that place limits on marketing activity:

• A) Managers who ignore consumer attitudes may cause new laws to be enacted or existing laws to be modified.
• B) Some existing laws may need to be modified or enforced more carefully instead of adding new laws.
• C) Strict enforcement of existing laws and heavy penalties could have far-reaching effects on the macro-marketing system.
• D) Laws set the minimum standards for ethical behavior as defined in a society.
• E) All of these alternatives are correct.

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Definitions:

Beta

A measure of a stock's volatility in relation to the overall market, indicating its risk compared to the market as a whole.

Portfolio

A collection of financial investments like stocks, bonds, commodities, cash, and cash equivalents, including closed-end funds and exchange-traded funds.

Securities

Financial instruments representing ownership (stocks), a debt agreement (bonds), or the rights to ownership (derivatives) that can be bought and sold.

Portfolio Beta

A measure of the volatility, or systematic risk, of a portfolio in comparison to the overall market.