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ohaa [14]
3 years ago
6

Which rules and regulations govern advertising to protect the consumer from deceptive or misleading claims?

Business
1 answer:
Fed [463]3 years ago
7 0

Advertising regulations provide a set of rules and regulations that protects the consumer from deceptive or misleading claims.

Answer: Option (d)

<u>Explanation:</u>

Advertising regulations is a consumer protection act that safeguards the peoples from being misled in false information about sales and trade.

These regulations evaluates the bad products in a company and makes it fail easily.

It explains the detailed information about the severity of false product in a company and prevents the people from consuming that product.

FTC is one of the advertising policies commonly referred to as the Federal Trade Commission safeguards the consumers from unwanted practices and it also protects the basic rights of the consumer in a state.

FTC uses three major bureaus to evaluate the fraud practices involved in a business and implements a proper advertising activities.

Bureaus of Competition, Economy and Consumer protections implies the best practices of advertising policies.

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For each of the following independent transactions, calculate the recognized gain or loss to the seller and the adjusted basis t
Illusion [34]

Answer:

(a) Gain or loss to the seller:

= Adjusted basis - Fair market value

= $17,000 - $12,000

= $5,000 (Loss)

No loss will be recognized since the B and P are brothers. As per section 267, such loss is disallowed.

Hence, Loss of $5,000 will not be recognized.

Fair market value is considered as adjusted basis to buyer. Hence, the adjusted basis for the buyer is $12,000.

(b)

Gain or loss to the seller:

= Adjusted basis - Fair market value

= $85,000 - $70,000

= $15,000 (Loss)

Transaction a and b are not related party as per section 267.

Fair market value is considered as adjusted basis to buyer. Hence, the adjusted basis for the buyer is $70,000.

(c)

Gain or loss to the seller:

= Adjusted basis - Fair market value

= $20,000 - $19,000

= $1,000 (Loss)

Recognized loss to seller = $0, since s owns whole stock of corporation.

Fair market value is considered as adjusted basis to buyer. Hence, the adjusted basis for the buyer is $19,000.

(d)

Gain or loss to the seller:

= Adjusted basis - Fair market value

= $20,000 - $18,500

= $1,500 (Loss)

Recognized loss to seller = $1,500, since R and A are not related party as per section 267.

Fair market value is considered as adjusted basis to buyer. Hence, the adjusted basis for the buyer is $18,500.

(e) Gain or loss to the seller:

= Adjusted basis - Fair market value

= $175,000 - $220,000

= $45,000 (Gain)

Recognized loss to seller:

= $175,000 ÷ 2

= $87,500, since M and K both are related parties as per section 267.

Purchase price of interest is considered as adjusted basis to buyer. Hence, the adjusted basis to buyer is $220,000.

5 0
3 years ago
Owner Sam has a $75,000 mortgage on his home. Sam sells his home to Bill for $100,000. Bill pays $7,000 down and borrows $93,000
storchak [24]

Answer:

wrap-around loan

Explanation:

Based on the scenario being described within the question it can be said that the type of loan being described is known as a wrap-around loan. This is a type of loan in which involves the seller's mortgage on the home as well as an additional incremental value that the sums up to become the total purchasing price that the buyer will have to pay the seller over an period of time. Such as is described by the loan that Bill has taken.

7 0
4 years ago
An undergraduate business student has purchased a laptop computer for use during exams. This laptop is perfectly reliable except
g100num [7]

Answer:

probability of a reliable performance = 19/20

Explanation:

If a new battery has just been installed, then the chances of failure are only contributed by the faulty microchip, which has a failure rate of 1 in 20 hours.

Therefore in 1 hour, the probability that the laptop will perform reliably is calculated as follows:

Chances of failure = 1 in 20

20 hours = 1 chance of failure

∴ 1 hour = 1/20 chance of failure

1/20 = 0.05 chance of failure

Now, let us express 0.05 as fraction:

0.05 = 5/100

Therefore in 1 hour, there is a 5 in 100 chances of failure.

But we are asked to find the probability that the laptop will perform reliably. This is simply done by finding the difference between the total chances of occurrence (100)  and the chances of failure (5)

∴ Probability of reliable performance in one hour = (100 - 5) / 100

= 95/100

95/100 = 19/20

8 0
3 years ago
Which of the following are key economic statistics that are used to describe the state of the macroeconomy? I) Gross domestic pr
valentina_108 [34]

Answer:

II) The unemployment, III) Inflation

Explanation:

  • The man concerns for the macro-environmental analysis is the growth and unemployment and the inflation rates the price indexes along with the GDP.
  • The macroeconomics is the branch of macroeconomics that deals with the performance and stricture and the behavior and the decision making of the entire economy and includes the regional, national and local levels
3 0
3 years ago
Read 2 more answers
You are planning to start a new day care center for children under the age of 5. As part of the business plan, you need a spread
AveGali [126]
D) Salaries

Revenue is the income for your business so you make a profit from fund raisers, donations and fees charged per child. You are losing revenue when you have to pay your workers salaries
5 0
3 years ago
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