Before Calling on a Prospect, the Salesperson Should Learn as Much

question 78

Multiple Choice

Before calling on a prospect, the salesperson should learn as much as possible about the organization and its buyers. This step is known as ________.

• A) preapproach
• B) closing
• C) approach
• D) presentation
• E) prospecting

Comprehend the features and implications of callable and convertible bonds.

Know how to compute the carrying value of a bond and understand the impact of amortized discount or premium.

Recognize the implications of bond financing versus equity financing on company cash flows and return on equity.

Understand the legal framework surrounding bonds, including the purpose of bond indenture and debenture.

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Definitions:

Capital Surplus

A balance sheet account; the portion of shareholders’ contributions exceeding the par or stated value of shares. Also called additional paid in capital.

Derivative Action

A lawsuit brought by shareholders on behalf of a corporation against third parties, typically involving claims of mismanagement or abuse by corporate officers.

Independent Directors

Board members who are not part of a company's day-to-day operations, ensuring unbiased oversight and reducing conflicts of interest.

Zapata Test

A legal standard used to determine the independence and good faith of a special litigation committee's investigation and recommendations in corporate litigation.