Which of the Following Statements About Comparative Advertising Is True

question 105

Multiple Choice

Which of the following statements about comparative advertising is true?

• A) Comparative advertising for a new brand has a negative impact on purchase intentions if a brand with high credibility is the comparison product.
• B) The FCC is the only federal agency that has any regulatory power over comparative advertising.
• C) Direct comparative advertisements will not decrease purchase intentions for established brands even though consumer awareness of new ones is increased.
• D) Comparative advertising is highly regulated and is illegal in certain countries.
• E) None of these statements about comparative advertising is true.

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Definitions:

Denominator Level

The base or reference level used in various accounting or financial ratios, indicating the scale or volume for allocation or comparison.

Budget Variance

Budget variance is the difference between the budgeted or planned financial activity and the actual financial performance.

Fixed Manufacturing Overhead

Costs associated with production that do not change with the level of output, such as rent, salaries, and equipment depreciation.

Budget Variance

Budget variance is the difference between the budgeted or planned amount of expense or revenue and the actual amount incurred or earned.