The Federal Trade Commission (FTC) requires advertising for any product that is sweetened with saccharin to contain a warning that it may be hazardous to one's health. This requirement falls under the FTC's ________ requirement.
A. elimination of puffery
B. misleading omission
C. cease-and-desist
D. materiality
E. advertising substantiation
Answer: E
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Absorption costing is commonly used for internal reporting
Indicate whether the statement is true or false
In a production cost report, the number of total units to account for consists of ________. The weighted-average method is used
A) units in process at the beginning of the period and units started or added during the period B) units in process at the end of the period and units started or added during the period C) units in process at the beginning of the period and units remaining at the end of the period D) units of completed and transferred out products and total units produced
CASE tool-generated information should be fed into repositories
Indicate whether the statement is true or false
Daisy Corporation is the sole shareholder of Ostrich Corporation, which it hopes to sell within the next three years. The Ostrich stock (basis of $25 million) is currently worth $30 million, but Daisy believes that it would be easier to find a buyer if it was worth less. To lower the value of its stock, Ostrich distributes $4 million cash to Daisy (sufficient E & P exists to cover the
distribution). At a later date, Daisy sells Ostrich for $26 million. a. What are the tax consequences to Daisy on the sale? b. What would be the tax consequences if Ostrich had not first distributed the $4 million in cash and Daisy sold the Ostrich stock for $30 million?