You Are in the Process of Negotiating a Sales Contract

question 14

Multiple Choice

You are in the process of negotiating a sales contract with a new client.The product you are selling is high-quality and has received excellent reviews from customers.You have a strong bargaining position in this negotiation.In such a situation,which of the following will be the ideal mode of communication for negotiating the contract with the new client in order to receive the maximum benefit?

• A) e-mail
• B) instant messaging
• C) telephone
• D) face-to-face

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Definitions:

Gross Profit

The difference between sales revenue and the cost of goods sold, before deducting operating expenses, interest, and taxes.

Expense

Outflows or using up of assets as a result of the company’s efforts to generate revenue.

Income Statement

A financial statement that shows a company's revenues and expenses over a specific period, ultimately revealing the net profit or loss for that time.

Operating Cycle

The time period between the acquisition of inventory and the collection of cash from receivables, indicating the efficiency of a company's cash flow.