According to the video and the readings, ethical behavior in advertising:
A. Is by definition unattainable because there is no consensus about what truth is and how far advertise may distort it.
B. Requires at the very least that advertisers not engage in deliberate deception about the qualities of the product advertised.
C. Is the exception rather than the rule.
D. Because of the right to free speech, is determined only by whether a particular piece of advertising violates a specific law.
Ans: B. Requires at the very least that advertisers not engage in deliberate deception about the qualities of the product advertised.
You might also like to view...
An HR professional can be an effective talent manager or organizational designer only when he has the knowledge of how the organization is structured and how that structure might be adjusted to help it meet its goals for developing and using employees' talents.
a. true b. false
As part of the sensitivity analysis of the effect of the new project on the company’s cost of capital, Sandell is estimating the cost of equity of the China project considering that the China project requires a country equity premium to capture the risk of the project. The cost of equity for the project in this case is closest to:
Jurgen Knudsen has been hired to provide industry expertise to Henrik Sandell, CFA, an analyst for a pension plan managing a global large-cap fund internally. Sandell is concerned about one of the fund’s larger holdings, auto parts manufacturer Kruspa AB. Kruspa currently operates in 80 countries, with the previous year’s global revenues at h5.6 billion. Recently, Kruspa’s CFO announced plans for expansion into China. Sandell worries that this expansion will change the company’s risk profile and wonders if he should recommend a sale of the position. Sandell provides Knudsen with the basic information. Kruspa’s global annual free cash flow to the firm is h500 million and earnings are h400 million. Sandell estimates that cash flow will level off at a 2 percent rate of growth. Sandell also estimates that Kruspa’s after-tax free cash flow to the firm on the China project for next three years is, respectively, h48 million, h52 million, and h54.4 million. Kruspa recently announced a dividend of h4.00 per share of stock. For the initial analysis, Sandell requests that Knudsen ignore possible currency fluctuations. He expects the Chinese plant to sell only to customers within China for the first three years. Knudsen is asked to evaluate Kruspa’s planned financing of the required h100 million with a h80 public offering of 10-year debt in Sweden and the remainder with an equity offering. Additional information: Equity risk premium, Sweden 4.82% Risk-free rate of interest, Sweden 4.25% Industry debt-to-equity ratio 0.3 Market value of Kruspa’s debt h900 million Market value of Kruspa’s equity h2.4 billion 34 Learning Outcomes, Summary Overview, and Problems part-i-03 13 January 2012; 10:18:46 Kruspa’s equity beta 1.3 Kruspa’s before-tax cost of debt 9.25% China credit A2 country risk premium 1.88% Corporate tax rate 37.5% Interest payments each year Leve A. 10.52%. B. 19.91%. C. 28.95%.