Which of the Following Statements About "New Products" Is FALSE

question 81

Multiple Choice

Which of the following statements about "new products" is FALSE?

• A) In order for it to be advertised as new, there should be a functionally significant change in the product-according to the FTC.
• B) A product should be considered "new" by a particular firm if it is new in any way for that company.
• C) The FTC considers six months as the maximum time that a product should be called "new."
• D) According to the FTC, a product may be called "new" (for example, in advertising) as long as the firm has made at least some minor change in the package or product.
• E) A marketing manager should consider a product new if it is aimed at new markets.

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Definitions:

Intragroup Transactions

Transactions that occur between entities within the same group of companies, often leading to the need for elimination adjustments in consolidated financial statements.

Pre-acquisition Entries

Journal entries made to adjust the values of the acquiring company's assets and liabilities upon acquisition.

Business Combination

A transaction or event in which an acquirer gains control over one or more businesses.

Intragroup Transactions

Transactions that occur between entities within the same group or corporate structure, often used for internal financing, sales, or services.