Did Kim Make a Mistake When She Told a Potential

question 113

Multiple Choice

Did Kim make a mistake when she told a potential customer that her competitor's products were flimsy and poorly made?

• A)Yes, if the Federal Trade Commission ever learns of her lack of discretion.
• B)No, because customers don't believe what salespeople tell them.
• C)Yes, if the potential customer had ever bought the competitor's products, it could be regarded as a criticism of their judgment.
• D)No, she was trying to make a sale.
• E)She shouldn't worry about it if that is part of her sales presentation.

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Definitions:

Investment Projects

Initiatives undertaken by businesses or individuals that involve committing resources with the expectation of generating future financial returns.

Present Value

The current worth of a future sum of money or stream of cash flows, given a specified rate of return.

Cash Inflows

Refers to the money received by a business from its various sources, such as sales revenue, investment income, and financing.

Straight-Line Method

A depreciation method that allocates the cost of an asset evenly over its useful life.