A franchisor discloses a cautionary statement that reads, "Caution: These figures are only estimates of what we think you may earn. There is no assurance you'll do as well. If you rely upon our figures, you must accept the risk of not doing so well&q
This is an instance of ________.
A) disclosure of earning projections based on actual data
B) disclosure of earning projections based on hypothetical data
C) nondisclosure of sales or earnings projections
D) fraudulent disclosure by the franchisor
B
You might also like to view...
A partner who withdraws from a partnership may not withdraw the balance in his or her Capital account
Indicate whether the statement is true or false
The following information is for Barrel and its competitor Crate. ?BarrelCrate?Year 1Year 2Year 1Year 2Net sales ?$347,850$365,418$579,750$664,395Cost of sales ?121,747146,167318,862312,265Required:1. Calculate the dollar amount of gross margin and the gross margin ratio to the nearest percent, for each company for both years.2. Which company had the more favorable ratio for each year?3. Which company had the more favorable change in the gross margin ratio over this 2-year period?
What will be an ideal response?
Tanner is the accountant for Cheatam and Sons Co For many years he has kept two sets of books, one with real figures and another with figures he uses when the IRS audits. When Tanner, while working on Cheatam's books, is arrested for fraud, what will happen to the books?
A) They are privileged communications and therefore inadmissible as evidence against Tanner. B) They are protected by the Fifth Amendment and therefore are inadmissible. C) They may be admitted as evidence since the Fifth Amendment does not protect business records. D) They may be admitted as evidence only if Tanner consented to a search of his offices.
Alma sells her car to Ervin. Since she still has four months left on her automobile insurance policy, she tells Ervin he will be covered for this four-month period under the policy. This purported assignment of her policy is effective as long as she notifies her insurance company about the change of insureds
Indicate whether the statement is true or false