Nalini Thought She Was a Victim of the Low-Ball Technique

question 23

Multiple Choice

Nalini thought she was a victim of the low-ball technique because,after she decided to purchase an automobile from a particular dealer,

• A) the dealer told her that this model had been sold.
• B) the dealer discovered an "error" in the price calculations, making the car more expensive.
• C) the dealer pretended to "be on her side" in lowering the price of the car.
• D) the dealer discussed a number of similarities that they shared.

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Definitions:

Financial Institution

An establishment that conducts financial transactions such as investments, loans, and deposits.

Equity Financing

The process of raising capital through the sale of shares in a company, providing investors with partial ownership.

Ownership Shares

Equity units in a company that represent a portion of the ownership, often conferring voting rights and a share in the profits.

Cash Investments

Placing money into opportunities expected to yield a financial return, utilizing cash or cash equivalents.