General Motors' Executives Work for a Short Time in Some

question 61

Multiple Choice

General Motors' executives work for a short time in some dealerships, and some dealership owners work in GM's dealer policy department. This strategy helps the company avoid conflicts with its dealers. This is an example of the ________ strategy.

• A) employee exchange
• B) dual compensation
• C) joint membership
• D) co-optation
• E) diplomacy

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Definitions:

Interest Paid

This is the amount of money paid by a borrower to a lender in return for the use of borrowed money, usually expressed as a percentage of the principal.

Effective Rate

The actual interest rate an investor earns or pays on an investment or loan, taking into account the effect of compounding.

Nominal Rate

Nominal Rate is the interest rate before adjustments for inflation, reflecting the actual monetary cost of borrowing.

Opportunity Cost

Missing out on possible advantages from other choices when a specific choice is made.