Ingrid Is Selling a Local Area Network (LAN) to an Engineering

question 8

Multiple Choice

Ingrid is selling a local area network (LAN) to an engineering company.She is doing a sales presentation to all of the people who will be using the LAN.She has just finished giving a brief history of her company and discussing the firm's philosophy to the 25 people in the room.She has also mentioned a few large companies that her firm has worked with in the past.What is Ingrid attempting to do by providing the company's history and its philosophy?

• A)building a rapport
• B)establish credibility
• C)bragging about the company's success
• D)educate her audience
• E)showcasing how her company has no competition

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Definitions:

Sunk Cost

A sunk cost refers to money already spent and permanently lost, which cannot be recovered and should not impact future business decisions.

Externality

A cost or benefit that affects a party who did not choose to incur that cost or benefit, often seen in environmental and public goods scenarios.

After-tax Proceeds

The net amount received after taxes are deducted from the gross proceeds of a sale or transaction.

Tax Shield

A deduction allowed by the tax laws that lowers a person's or corporation's taxable income and thus their tax liability.