According to the GHM Theory,the Choice Between an In-House Sales

question 25

Multiple Choice

According to the GHM Theory,the choice between an in-house sales force versus independent agents should turn on the relative importance of investments in developing persistent clients by the agent versus list-building activities by the insurance firm.What would GHM thus predict about the sales of whole life versus term life insurance?

• A)Both would be sold by the insurance company's in-house sales force
• B)Whole life would be sold by the insurance company's in-house sales force;term by an independent agent
• C)Whole life would be sold by an independent agent;term by the insurance company's in-house sales force
• D)Both would be sold by an independent agent
• E)An insurance company would try to "buy" the business (whole and term life insurance)of its independent agents

---

Definitions:

Comparable Work

Comparable work refers to jobs that are sufficiently similar in terms of skills, effort, responsibility, and working conditions, used often in discussions about fair wages and equal pay.

GDP

Gross Domestic Product (GDP) measures the total value of all final goods and services produced within a country's borders in a specific time period, representing the size of its economy.

Trade Deficit

A scenario in which a nation's expenditure on imported goods and services surpasses its revenue from exports, leading to a net export of the home currency to international markets.

U.S. Dollars

The official currency of the United States, represented by the symbol $.