When Determining Whether the Prospect Has the Means and Authority

question 8

Multiple Choice

When determining whether the prospect has the means and authority to make a purchase,the salesperson must find out:

• A)Whether the prospect can and will make a purchase.
• B)How much effort and investment might be needed to see the purchase through to completion.
• C)Neither A nor B.
• D)Both A and B.

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Definitions:

CDOs

Abbreviation for Collateralized Debt Obligations, a type of structured asset-backed security with multiple tranches.

Securities

Financial instruments that represent an ownership position in a publicly-traded corporation (stock), a creditor relationship with a governmental body or a corporation (bond), or rights to ownership such as options.

Negative Amortization

A situation in a loan where the monthly payments are not enough to cover the interest costs, causing the loan balance to increase rather than decrease over time.

Commission

A service fee charged by a broker or agent for facilitating transactions, such as in stocks or real estate.