After Bargaining for a Car and Agreeing on a Price

question 124

Multiple Choice

After bargaining for a car and agreeing on a price, the car dealer said that he "accidentally" made a math error and the car was actually $300 more than the agreed upon price. The customer still purchased the car. This technique used by the unscrupulous seller is called ______.

• A) contrast
• B) lowball technique
• C) foot-in-the-door
• D) door-in-the-face

---

Definitions:

Latest Balance Sheet

The most recent statement of a company’s financial position, showing assets, liabilities, and equity at a specific point in time.

Succeeding Fiscal Years

The periods following the current fiscal year, typically referring to future financial or budgetary planning years.

Lessor's Implicit Rate

The interest rate a lessor effectively charges a lessee in a lease agreement, often used to calculate the present value of minimum lease payments.

Incremental Borrowing Rate

The interest rate a company would have to pay if it borrows funds to finance a lease or purchase of an asset.