Getting a Person to Make a Small Commitment in Order

question 261

Multiple Choice

Getting a person to make a small commitment in order to get that person to make a larger commitment later is known as the __________.

• A) door-in-the-face technique
• B) foot-in-the-door technique
• C) sleeper effect method
• D) supersales technique

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Definitions:

Cost of Equity Capital

The return required by equity investors as compensation for their investment risk.

WACC

Weighted Average Cost of Capital, a measure of the average rate of return a company is expected to pay its securities holders to finance its assets.

Debt Financing

The practice of borrowing funds to finance the business operations or expansion, typically involving loans or issued bonds.