Final answer:
The use of colons before direct quotations is not standard practice; colons follow independent clauses leading into closely related quotes. In business salutations, colons are correctly used after the salutation.
Step-by-step explanation:
The statement regarding the use of colons preceding direct quotations and being used in business salutations and titles is false. While colons do introduce lists, summaries, and can separate titles from subtitles, they are not typically used to precede direct quotations. Instead, a colon may be used after an independent clause when it is followed by a quote that is closely related to that clause, as seen in Example 2 - "The crier said those dreaded words: ‘The King is dead! Long live the king!’" However, when introducing a quote, a comma is more commonly used unless the quote is a complete sentence itself and follows an independent clause. As for business salutations, a colon is used after the salutation in formal letters (e.g., Dear Mr. Smith:).