The Best Way to Deal with a Telephone Solicitation Is

question 32

Multiple Choice

The best way to deal with a telephone solicitation is to ____.

• A) just hang up on the telephone representative
• B) ask for the name and telephone number of the firm and call back
• C) talk with several telephone representatives and compare details of the sale
• D) copy down details of the order when it is being placed
• E) tell the representative he or she will have to visit the office in person

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Definitions:

Profitability Index

A calculation that measures the relative profitability of an investment by dividing the present value of future cash flows by the initial investment cost.

Discount Rate

This rate is applied in discounted cash flow analysis to derive the current value of cash flows expected to be received in the future.

Project

A short-term effort made to develop a distinct product, service, or outcome.

Required Return

The minimum rate of return needed on an investment, determined by the investor’s risk tolerance and the investment’s risk.