Which of the Following Is an Advantage That a Sales

question 45

Multiple Choice

Which of the following is an advantage that a sales force consisting of local nationals is likely to have over a sales force of expatriates?

• A) They are more efficient in communicating with and influencing headquarters' personnel.
• B) They cost the firm less with respect to maintenance.
• C) They add more to the prestige of the product line in the eyes of foreign customers.
• D) They have greater technical expertise.
• E) They are less likely to accept any form of bribe.

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Definitions:

Exercise Price

The cost at which the person holding the option has the right to purchase (in the case of a call option) or sell (in the case of a put option) the underlying asset.

Underlying Stock

This refers to the stock on which derivative contracts, such as options and futures, are based.

American Call

A type of call option that can be exercised at any time before its expiration date.

European Call

An option contract that gives the holder the right, but not the obligation, to buy a specific asset at a specified price within a fixed period, applicable only at the expiration date.