Question

To advertise or promote sales, a contractor may not give a prospective customer a tangible item costing more than __________.

a) $10
b) $25
c) $50
d) $100

Answer 1

A contractor must adhere to legal limits on promotional gifts, typically not exceeding $25 to avoid perceptions of bribery or undue influence.

Step-by-step explanation:

To comply with promotional regulations in business, a contractor may not give a prospective customer a tangible item costing more than $25. This is often a legal requirement to prevent the perception of bribery or undue influence in the decision-making process of the prospect. The actual value limit can vary based on local laws and industry regulations. If a contractor surpasses this amount, they may be subject to fines or other penalties. Therefore, it's crucial for contractors to be aware of and adhere to these legal constraints.