Mr. Edwards plans a marketing event with about 40 attendees and hires a magician for entertainment. Under CMS guidance, can this be done?

• A. No, any entertainment violates the guidelines.
• B. Yes, if the estimated attendance is based on venue size and response rate and the gift value does not exceed $15.
• C. Yes, regardless of gift value.
• D. Only if the entertainer is a medical professional.

Answer: (B)

Under CMS guidelines, marketing events with entertainment can be acceptable as long as two conditions are met: the attendee estimate is grounded in the venue size and expected response rate, and any gifts or promotional items given to attendees are nominal, not exceeding a small value (often referenced as $15). In this scenario, planning for about 40 attendees fits if that number is a reasonable projection based on the actual venue and how many people are likely to show up. The magician as entertainment is allowed as long as the per-person value of any gifts stays at or below $15. This isn’t dependent on the entertainer’s profession, and it isn’t a blanket ban on entertainment; what matters is staying within the estimated attendance method and the nominal gift threshold.