Jim, an Inexperienced Salesperson, Informs One of His Potential Customers

question 25

Multiple Choice

Jim, an inexperienced salesperson, informs one of his potential customers that the laptop he is selling has a much faster processing speed than the competitor's laptop despite being aware that this is not true. The customer, however, remains unconvinced and does not make the purchase. Jim's behavior is considered unethical because he:

• A) fails to be perceived as an expert by the customer.
• B) fails to practice the hard-sell approach.
• C) is unable to convince the customer to make a purchase.
• D) exaggerates the benefits of his product.
• E) is unable to meet his sales quota.

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Definitions:

Call Contract

An options contract that gives the holder the right to buy an underlying asset at a specified price within a certain time frame.

Premium

The amount by which the price of a security, especially a bond or insurance policy, exceeds its principal amount or face value.

American-Style Option

A type of options contract that can be exercised at any time before expiration, offering more flexibility than European-style options.

European-Style Option

An option contract that can only be exercised on its expiration date, not before.