The FTC defines ________ as any ad that contains a misrepresentation, omission, or other practice that can mislead a significant number of reasonable consumers to their detriment.
A. deceptive advertising
B. faux marketing
C. subliminal advertising
D. unfair advertising
E. pro bono advertising
Answer: A
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Return on investment (ROI) is calculated by:
A) multiplying the margin by the turnover. B) dividing the margin by the turnover. C) dividing the turnover by the margin. D) adding the margin and the turnover.
In the partnership, profit and loss distribution is determined by the partnership agreement.
Answer the following statement true (T) or false (F)
When Mohammed was hired by Pomico, Inc, he signed the following agreement, "Upon termination of my employment with Pomico, I agree not to work for a competing company within 30 miles of Pomico's headquarters for one year." This agreement, important to protecting secret information developed in the employer's business, is:
a. an unenforceable exculpatory agreement. b. an unenforceable usurious agreement. c. an enforceable bailment agreement. d. an enforceable agreement not to compete.
You are going to add one of the following three projects to your already well-diversified portfolio
PROJECT 1 PROJECT 2 Probability Return Standard Deviation Beta Probability Return Standard Deviation Beta 50% Chance 22% 12% 1.1 30% Chance 36% 19.5% 0.8 50% Chance -4% 40% Chance 10.5% 30% Chance -20% PROJECT 3 Probability Return Standard Deviation Beta 10% Chance 28% 12% 2.0 70% Chance 18% 20% Chance -8% Assume the risk-free rate of return is 2% and the market risk premium is 8%. If you are a risk averse investor, which project should you choose? A) Project 1 B) Project 2 C) Project 3 D) Either Project 2 or Project 3 because the higher expected return on project 3 offsets its higher risk