What are the three categories of deceptive marketing practices? Briefly describe each
What will be an ideal response?
Deceptive practices fall into three groups: pricing, promotion, and packaging. Deceptive pricing includes practices such as falsely advertising "factory" or "wholesale" prices or advertising a large price reduction from a phony high retail list price. Deceptive promotion includes practices such as misrepresenting the product's features or performance or luring customers to the store for a bargain that is out of stock. Deceptive packaging includes exaggerating package contents through subtle design, using misleading labeling, or describing size in misleading terms.
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________ is a lasting, general evaluation of people, objects, advertisements, or issues
A) An object B) A power C) An attitude D) An image
Pierce Ice Cream Company operates several ice cream shops across the United States. The company has plans to expand the number of shops during the coming year. This planned expansion will require a large bank loan. During the past 5 years, some periods
were more profitable than others, and the President of Pierce has suggested to the company accountant that the depreciation and inventory valuation methods should be changed frequently. This change would allow the company to create the appearance that earnings were very consistent over the years. Discuss the merits of the President's suggestion regarding the financial statements.
Under accrual accounting, revenue is recognized when
a. the firm has performed all, or most of, the services it expects to provide. b. the firm has received cash, or some other asset such as a receivable, whose cash-equivalent value it can measure with reasonable precision. c. the firm has significant uncertainty about the amount and timing of the cash inflows and outflows from the sales transaction. d. both a and b must be present. e. none of the above.
The economic environment affects the performance of an organization, as was noted during the recent recession. Which of the following factors is cited as one of the causes of the recent recession triggered in the home mortgage markets in the U.S.?
A. high interest rates on mortgages B. massive global liquidity C. lack of leverageability for business borrowers D. difficulty in securing housing credit