Adam Is Writing a Proposal to the Board of Directors

question 14

Multiple Choice

Adam is writing a proposal to the board of directors about an idea he has for a new product line.What should he do to best persuade the members to adopt his idea?

• A) Avoid using facts and figures as it may bore or confuse his reader.
• B) Show how his proposal will increase company revenues.
• C) Avoid mentioning any risks involved because doing so might scare the audience.
• D) Adam should do all of these.

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Definitions:

Consumers Budget Constraint

A consumer's budget constraint represents the combination of goods and services they can afford with their income and prices.

Adverse Selection

A situation in economic theory where information asymmetry results in high-risk individuals being more likely to apply for insurance or credit, potentially leading to market failure.

Insurance

A financial product that provides protection against potential future losses or damages to individuals or property.

Klutzes

Describes persons who are clumsy, often making mistakes or causing accidents in a somewhat comical or endearing way.