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meriva
3 years ago
12

ECNAL Corp. manufactures bicycle parts. One of its new products, the Slipstream tire, is advertised to be 20 percent stronger th

an that of its competitors due to a new rubber compound used that makes the tires skid resistant. After receiving complaints of fraud, the Federal Trade Commission (FTC) determines that the tire is made from rubber similar to that found in most bicycle tires and is not skid resistant. The FTC orders ECNAL to run an ad admitting that its advertisements were misleading and remove the untrue information from its advertisements. In this scenario, which of the following remedies is used by the FTC?
A. corrective advertising
B. cease and desist advertising
C. comparative advertising
D. parody advertising
E. social advertising
Business
1 answer:
Drupady [299]3 years ago
5 0

Answer:

The correct answer is the option A: Corrective advertising.

Explanation:

To begin with, the concept known as <em>"Corrective Advertising"</em> refers to a severe penalty that is used by many agencies, including the Federal Trade Commision, in ordert to impose to the companies the fact that they had worked unethically regarding certain advertisements that they have been controled by the agency. Therefore that the corrective advertising is a way to penalize those companies, that had advertised products with false information or that might cause harm to the consumers.

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"Clothing maker The Gap states that its purpose as an organization is to "create emotional connections with customers around the
alexdok [17]

Answer:

mission statement

Explanation:

Mission statement -

It is the statement about the organization , as why is the organization in existence , determining the goal of the operation , the type of product ans service that the organisation provides , find the overall goal and the primary market and customer , is known as the Mission statement .

Hence , from the question , The Gap , the clothing maker have certain motto , i.e. , create emotional connections with the customer ,

Therefore , it is the company's Mission statement .

8 0
3 years ago
An analysis and aging of the accounts receivable of Hugh Company at December 31 revealed the following data: Accounts Receivable
Hitman42 [59]

Answer:

$844,000

Explanation:

Given that,

Accounts Receivable = $900,000

Credit balance of Allowance for Doubtful Accounts per books before adjustment = $50,000

Expected amount of uncollectible = $56,000

Bad debt expense at the end of the period is determined by subtracting the credit balance of allowance for doubtful accounts from the expected amount of uncollectible.

Bad debt expense:

= Expected amount of uncollectible - Credit balance

= $56,000 - $50,000

= $6,000

At the end of the period, the allowance for doubtful accounts has a balance of $56,000 that are to be uncollectible.

The cash realizable value of the accounts receivable at December 31, after adjustment, is determined by simply subtracting the Allowance for doubtful accounts  from the accounts receivable. It is calculated as follows:

= Accounts Receivable - Allowance for doubtful accounts

= $900,000 - $56,000

= $844,000

4 0
3 years ago
What is the amount of interest earned after two years on a $100 deposit paying 4 percent simple interest annually?
klasskru [66]

Answer:

$8

Explanation:

The yearly amount of interest earned on a $100 deposit at 4 percent rate is:

Ai=$100*0.04\\Ai=\$4

Since simple interest investments yield a constant interest each year, the amount earned after two years is:

I=2*\$4\\I=\$8

The total amount earned is $8.

7 0
3 years ago
You recently purchased a stock that is expected to earn 20 percent in a booming economy, 15 percent in a normal economy, and los
ICE Princess25 [194]

Answer:

Expected rate of return on stock is 14.86%

Explanation:

The expected rate of return of a stock is the mean return that is expected to be earned by the stock considering the different scenarios that can occur, the return in these scenarios and the probability of the occurrence of these scenarios. The formula for expected rate of return of stock is,

rE = pA * rA  +  pB * rB  +  ...  + pN * rN

Where,

  • pA, pB, ... represents the probability that scenario A, B and so on will occur or the probability of each scenario
  • rA, rB, ... represents the return in scenario A, B and so on

rE = 0.21 * 0.2  +  0.72 * 0.15  +  0.07 * -0.02

rE = 0.1486 or 14.86%

8 0
3 years ago
Goyo Industries (a sole proprietorship) sold three § 1231 assets during 2019. Data on these property dispositions are as follows
loris [4]

Answer:

Machine #1 - $7,000, gain

Machine #2 - $3,000, loss

Machine #3 - $2,000, gain

Explanation:

Given;

<u>Machine #1</u>

Asset Cost = $85,000

Acquired Depreciation = $32,000

Sales price = $60,000

From the above information, the book value of machine #1

= $85,000 - $32,000

= $53,000

Gain/(loss) on disposal = $60,000 - $53,000

                                      = $7,000

A gain of $7,000 on disposal.

<u>Machine #2</u>

Asset Cost = $30,000

Acquired Depreciation = $12,000

Sales price = $15,000

From the above information, the book value of machine #2

= $30,000 - $12,000

= $18,000

Gain/(loss) on disposal = $15,000 - $18,000

                                      = ($3,000)

A loss of $3,000 on disposal

<u>Machine #3</u>

Asset Cost = $77,000

Acquired Depreciation = $28,000

Sales price = $51,000

From the above information, the book value of machine #1

= $77,000 - $28,000

= $49,000

Gain/(loss) on disposal = $51,000 - $49,000

                                      = $2,000

A gain of $2,000 on disposal.

4 0
3 years ago
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