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wariber [46]
3 years ago
7

. What do you understand by term “advertising”. What would happen if ethical advertisement is not followed by businesses? Explai

n in detail
Business
1 answer:
Blababa [14]3 years ago
7 0

Answer:

Ethics means a set of moral principles which govern a person’s behavior or how the activity is conducted. And advertising means a mode of communication between a seller and a buyer.

Thus ethics in advertising means a set of well defined principles which govern the ways of communication taking place between the seller and the buyer. Ethics is the most important feature of the advertising industry. Though there are many benefits of advertising but then there are some points which don’t match the ethical norms of advertising.

An ethical ad is the one which doesn’t lie, doesn’t make fake or false claims and is in the limit of decency.

Nowadays, ads are more exaggerated and a lot of puffing is used. It seems like the advertisers lack knowledge of ethical norms and principles. They just don’t understand and are unable to decide what is correct and what is wrong.

The main area of interest for advertisers is to increase their sales, gain more and more customers, and increase the demand for the product by presenting a well decorated, puffed and colorful ad. They claim that their product is the best, having unique qualities than the competitors, more cost effective, and more beneficial. But most of these ads are found to be false, misleading customers and unethical. The best example of these types of ads is the one which shows evening snacks for the kids, they use coloring and gluing to make the product look glossy and attractive to the consumers who are watching the ads on television and convince them to buy the product without giving a second thought.

<em>Ethics in Advertising is directly related to the purpose of advertising and the nature of advertising. Sometimes exaggerating the ad becomes necessary to prove the benefit of the product. For e.g. a sanitary napkin ad which shows that when the napkin was dropped in a river by some girls, the napkin soaked whole water of the river. Thus, the purpose of advertising was only to inform women about the product quality. Obviously, every woman knows that this cannot practically happen but the ad was accepted. This doesn’t show that the ad was unethical. </em>

Ethics also depends on what we believe. If the advertisers make the ads on the belief that the customers will understand, persuade them to think, and then act on their ads, then this will lead to positive results and the ad may not be called unethical. But at the same time, if advertisers believe that they can fool their customers by showing any impractical things like just clicking fingers will make your home or office fully furnished or just buying a lottery ticket will make you a millionaire, then this is not going to work out for them and will be called as unethical.

Recently, the Vetican issued an article which says ads should follow three moral principles - Truthfulness, Social Responsibility and Upholding Human Dignity.

Generally, big companies never lie as they have to prove their points to various ad regulating bodies. Truth is always said but not completely. Sometimes its better not to reveal the whole truth in the ad but at times truth has to be shown for betterment.

Pharmaceutical Advertising - they help creating awareness, but one catchy point here is that the advertisers show what the medicine can cure but never talk about the side effects of that same thing or the risks involved in intake of it.

Children - children are the major sellers of the ads and the product. They have the power to convince the buyers. But when advertisers are using children in their ad, they should remember not to show them alone doing there work on their own like brushing teeth, playing with toys, or infants holding their own milk bottles as everyone knows that no one will leave their kids unattended while doing all these activities. So showing parents also involved in all activities or things being advertised will be more logical.

Alcohol - till today, there hasn’t come any liquor ad which shows anyone drinking the original liquor. They use mineral water and sodas in their advertisements with their brand name. These types of ads are called surrogate ads. These type of ads are totally unethical when liquor ads are totally banned. Even if there are no advertisements for alcohol, people will continue drinking.

Cigarettes and Tobacco - these products should be never advertised as consumption of these things is directly and badly responsible for cancer and other severe health issues. These as are already banned in countries like India, Norway, Thailand, Finland and Singapore.

Ads for social causes - these types of ads are ethical and are accepted by the people. But ads like condoms and contraceptive pills should be limited, as these are sometimes unethical, and are more likely to loose morality and decency at places where there is no educational knowledge about all these products.

(that is same question on my papers)

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Which of the following is true of a sole proprietorship? a. A separate tax return must be filed. b. It is not a business entity.
timama [110]

Answer:

b. It is not a business entity

Explanation:

From the answers provided it can be said that the statement that is true about a sole proprietorship is that it is not a business entity. This is because a sole proprietorship is a business that has only a single owner and is not registered as a corporation, partnership or limited liability company. Meaning that there is no separate existence from the owner and the business, causing the business to NOT be a legal entity.

5 0
3 years ago
Derrick Company issues 4,790 shares of restricted stock to its CFO, Dane Yaping, on January 1, 2012. The stock has a fair value
Aleksandr-060686 [28]

Answer and Explanation:

The journal entries are as follows

a.

On Jan 1, 2012

Unearned compensation  $121,000

          To common stock $14,370  (4,790 shares × $3)

          To Paid in capital in excess of par value $106,630

(Being the issuance of the restricted stock is recorded)

For recording this we debited the unearned compensation as it decreased the liability and credited the common stock and paid in capital as it increased the stockholder equity

On Dec 31, 2013

Compensation expenses  $30,250   ($121,000 ÷ 4 years)

          To unearned compensation $30,250

(Being the compensation expense is recorded)

For recording this we debited the compensation expenses as it increased the expenses and credited the unearned compensation as it also increased the laibilities

b.

On Mar 4, 2014

Common stock $14,370  (4,790 shares × $3)

Paid in capital in excess of par value $106,630

              To compnesation expenses $60,500 ($30,250 × 2 years)

              To Unearned compensation $60,500 ($30,250 × 2 years)

(Being the forefieture of restricted stock is recorded)

For recording this we debited  the common stock and paid in capital as it decreased the stockholder equity and credited the compensation expense & unearned compensation as it decreased the expenses and increased the liabilities

6 0
4 years ago
Steele Corporation uses a predetermined overhead rate based on machine-hours to apply manufacturing overhead to jobs. Steele Cor
GREYUIT [131]

Answer:

B)$4.25

Explanation:

Predetermined Overhead rate = Estimated Manufacturing overhead / Estimated Machine hours

Predetermined Overhead rate = $68,000 / 16,000 =$4.25 per unit

Machine-hours                            16,000

Manufacturing Overhead:

Salary of production supervisor $40,000

Indirect material                          $8,000

Rent on factory equipment       <u> $20,000</u>

Total Manufacturing overhead  <u>$68,000</u>

4 0
3 years ago
In 1895, the first Putting Green Championship was held. The winner’s prize money was $220. In 2016, the winner’s check was $1,46
ad-work [718]

Answer:

(i) 7.54%(Approx).

(ii) $8,995,138.42(Approx).

Explanation:

Given that,

Winner’s prize money = $220

In 2016,

Winner’s check = $1,460,000

We use the formula:

A=P(1+\frac{r}{100} )^{n}

Where ,

A=future value

P=present value

r=rate of interest

n=time period.

n = 2016 - 1895

  = 121

(a)

1,460,000=220(1+\frac{r}{100} )^{n}

(\frac{1,460,000}{220})^{\frac{1}{121} }=(1+\frac{r}{100})

(1+r/100) = 1.075440035

r = (1.075440035 - 1) × 100

 = 7.54%(Approx).

(b)

n = 2041 - 2016

  = 25

A=P(1+\frac{r}{100} )^{n}

A=1,460,000(1+0.075440035)^{25}

         = 1,460,000 × 6.161053698

         = $8,995,138.42(Approx).

4 0
3 years ago
Levi has always wanted to be a lawyer, but the top career cluster for him, according to his personal assessment, is the Arts, A/
son4ous [18]

Answer:

A) Giving up on being a lawyer

Explanation:

Just because some test told Levi he was good at the Arts, A/V Technology and communications cluster. Doesn't mean it he has to give up on his goal.

4 0
4 years ago
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