Which of the following is not considered deceptive by the FTC in regards to advertising?
A) Statements that have the potential to mislead reasonable customers
B) A money back guarantee
C) Implying claims without actually making them
D) Omitting important information that might shape the purchase decision
E) An untrue statement
Answer: B
Explanation: B) The FTC considers messages to be deceptive if they (a) include statements that are likely to mislead reasonable customers and the statements are an important part of the purchasing decision, (b) fail to include important information, or (c) imply deceptive claims without actually making them. According to the FTC, offering a money-back guarantee or providing letters from satisfied customers is not enough; you must still be able to support your claims with objective evidence such as a survey or scientific study, however, this is not considered deceptive advertising.
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Which of the following is an example of enhancing the growth potential of each customer through cross-selling?
A) In addition to bicycles, 2Wheels stocks biking gear such as helmets, bottles, jackets and other accessories. B) 2Wheels has a club for its regular customers, organizing cycling events and parties for them. C) Though 2Wheels previously offered free delivery, it now charges for deliveries made outside the city. D) 2Wheels allows existing customers to upgrade to a newer model at less than the sticker price by trading in their older model. E) 2Wheels encourages customers to send in their suggestions for product improvement.
Earnings per share for XYZ, Inc. grew constantly from $7.99 in 1974 to $12.68 in 1980. What was the compound annual growth rate in earnings-per-share over the period?
What will be an ideal response?