George Recently Joined Best Cars,a Used-Car Dealer,as a Salesman

question 40

Multiple Choice

George recently joined Best Cars,a used-car dealer,as a salesman.One of the first "tips" he got from his manager was to show potential buyers the priciest cars on the lot first.He was told that this usually influenced the buyer to opt for a car with a price tag much higher than what he had originally planned to pay.Which of the following obstacles to accurate perception occur(s) is this scenario an example of?

• A) Contrast effects
• B) The halo effect
• C) Projection
• D) Selective perception
• E) Dissonance

Understand the benefits of adding international stocks to a U.S. stock portfolio for diversification.

Grasp the principles of effective international diversification.

Know the definitions and purposes of ADRs and WEBS.

Analyze the appropriateness of using the S&P 500 as a proxy for the global market portfolio.

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Definitions:

Indirect Materials

Materials used in the production process that cannot be directly linked to a specific product, such as lubricants for machines.

Indirect Cost

Expenses that are not directly attributable to a specific business activity or product, such as overhead costs like utilities or rent.

Oil Lubricants

Substances applied to reduce friction between surfaces in mutual contact, which ultimately reduces the heat generated when the surfaces move.

Factory Machinery

Fixed assets used in the production of goods, including machines and equipment in a manufacturing facility.