The Sales of Products and Services to Consumers Through Personal

question 59

Multiple Choice

The sales of products and services to consumers through personal interactions and demonstrations in their homes or offices is referred to as

• A) direct selling.
• B) person-to-person sales.
• C) face-to-face selling.
• D) direct-response selling.
• E) customized selling.

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Definitions:

Corporate Subsidiary

A company that is completely or majority-owned by another company, known as the parent company.

New Equity Financing

The process of raising capital through the sale of shares in a company to new investors.

Leveraged Buyouts (LBOs)

Transaction in which a firm’s publicly owned stock is acquired in a mostly debt-financed tender offer, and a privately owned, highly leveraged firm results. Often, the firm’s own management initiates the LBO.

Private Equity Groups

Firms that invest in private companies, often acquiring significant or controlling stakes, with the intention of improving performance and increasing value before eventually selling the investment for a profit.