There Are Three Components to the Management Expense Ratio (MER)

question 133

True/False

There are three components to the management expense ratio (MER): management expense, dealer compensation, and administrative costs.

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Definitions:

Goals

Specific, actionable objectives intended to guide behavior and measure success.

Specific Target Point

A clearly defined goal or objective that one party aims to achieve in a negotiation or a set of negotiations.

Resistance Point

The resistance point is the threshold in negotiations beyond which a party will not go; it represents the worst acceptable outcome.

Opening Bid

The initial proposal or offer made by one party to another at the beginning of a negotiation process.