Hewlett-Packard Recently Shifted Its Entire U

question 248

Multiple Choice

Hewlett-Packard recently shifted its entire U.S.salesforce into home offices and saved millions in staff salaries and office rent despite the expense of equipping each home office with a notebook computer, fax/copier, cellular phone, two phone lines, and office furniture.Such decreased selling costs are among the benefits of __________.

• A)personal selling
• B)direct marketing
• C)salesforce automation
• D)decentralization
• E)account management policies

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Definitions:

Efficient Frontier

A concept in modern portfolio theory representing a set of optimal investment portfolios that offer the highest expected return for a defined level of risk or the lowest risk for a given level of expected return.

Capital Asset Pricing Model

A model that describes the relationship between systemic risk and expected return for assets, particularly stocks, used to calculate a theoretically appropriate required rate of return for an asset, given its non-diversifiable risk.

Expected Rate

The anticipated return on an investment based on historical averages, interest rates, or economic indicators.

Illiquidity Premiums

Additional return expected by investors for holding assets that are difficult to trade quickly without significant price concessions.