Nomar Is Trying to Get Trot to Buy a Set

question 74

Multiple Choice

Nomar is trying to get Trot to buy a set of encyclopedias. If Nomar wants to use the foot-in-the-door technique properly and successfully, he should be careful to make sure that

• A) Trot attributes his compliance with the first request to external reasons.
• B) the first request is more cumbersome than the second request.
• C) he gets someone else to make the second request.
• D) he minimizes the contrast between the first and second request.

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Definitions:

Rights Offering

A way companies raise capital, where existing shareholders are given the right to purchase additional shares at a discount before the new shares are offered to the public.

Subscription Price

The price at which existing shareholders can purchase additional shares of stock in a company, often at a discount from the current market price.

Ownership Percentage

The fraction or percentage of a company that is owned by an individual or entity, typically expressed as a share of the company's total equity.

Price-Earnings Ratio

A valuation ratio of a company's current share price compared to its per-share earnings.