100. Which of the following statements about self-regulatory programs is false?
Self-regulatory programs are usually less expensive than governmental regulatory programs.
Self-regulatory programs’ guidelines generally are more realistic and operational.
Many nongovernmental self-regulatory programs have neither the tools nor the authority to enforce guidelines.
Self-regulatory guidelines generally are stricter than governmental regulatory programs.
When a trade association sets up industry guidelines, some firms that are in the industry but not in the trade
association do not follow the guidelines.
MARK.PRID.16.03.05 – LO: 03–05
United States – BUSPROG: Analytic
United States – AK – DISC: Strategy
A-Head: Legal And Regulatory Forces
101. Which of the following is an advantage that self-regulatory agencies such as the BBB and the NARB have over
governmental laws and regulatory agencies?
Firms must strictly abide by the rulings of self-regulatory agencies.
Establishment and implementation are usually less expensive.
They have better tools to enforce their rulings.
Guidelines are often stricter and create greater compliance from firms.
Money is very rarely an issue in enforcing decisions of self-regulatory agencies.
MARK.PRID.16.03.05 – LO: 03–05
United States – BUSPROG: Analytic
United States – AK – DISC: Strategy
A-Head: Legal And Regulatory Forces
102. When a firm continues to violate what the Better Business Bureau believes to be good business practices, what is one
of the main actions the bureau will take?
Lead a consumer boycott of the business.
Sue the chief executive of the business.
Impose fines on the owners/managers of the business.
Support legal ordinances against the business.
MARK.PRID.16.03.05 – LO: 03–05
United States – BUSPROG: Analytic
United States – AK – DISC: Product
A-Head: Legal And Regulatory Forces
Bloom’s: Application