In Auto Sales,a ________ Is an Amount of Money,generally in the 2

question 8

Multiple Choice

In auto sales,a ________ is an amount of money,generally in the 2% to 3% range,that the manufacturer gives the dealer for selling an automobile.

• A)holdback
• B)rebate
• C)kickback
• D)markup
• E)none of the above

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Definitions:

Tax Implications

The effect that various financial decisions have on one's tax liability, including income generation, investments, and deductions.

Flotation Costs

Expenses incurred by a company in issuing new securities, including fees to underwriters, lawyers, and accountants.

Administrative Fees

Charges that cover the operational costs of managing investments or conducting transactions.

WACC

Weighted Average Cost of Capital; a calculation of a firm’s cost of capital where each category of capital is proportionately weighted.