If the National Advertising Division (NAD) finds an advertisement has not been properly substantiated, the NAD normally will:

A) issue a consent order
B) issue a cease and desist order
C) refer the case to the FTC for regulatory action
D) ask the advertiser to modify the ad or discontinue using the ad


D

Business

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Which transaction is not processed in the Fixed Asset System?

a. purchase of building b. improvement of equipment c. purchase of raw materials d. sale of company van

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Kagemusha, Inc., is a Japanese multi-national with operations in 23 countries around the world. It is Kagemusha’s policy to staff all the key positions in the company’s foreign operations with Japanese managers. What is Kagemusha’s staffing policy?

A. ethnocentric B. global C. polycentric D. geocentric E. transnational

Business

You won the lottery and can receive either 1. $60,000 today, or 2. $10,000 one year from today

plus $25,000 two years from today plus $35,000 three years from today. You plan to use the money to pay for your child's college education in 15 years. You should A) take option two because you get $70,000 rather than $60,000 regardless of current interest rates. B) take the $60,000 today because of the time value of money regardless of current interest rates. C) take the $60,000 today if you can earn 6.81% per year or more on your investments. D) take the $60,000 today only if the current interest rate is at least 16.67%.

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A regression analysis between sales (in $1000) and advertising (in $100) resulted in the following least squares line: y = 75 +6x. This implies that if advertising is $800, then the predicted amount of sales (in dollars) is:

a. $4875. b. $123,000. c. $487,500. d. $12,300.

Business