The Person Who Agrees to a Small Request Initially Is

question 52

Multiple Choice

The person who agrees to a small request initially is more likely, in order to be consistent, to comply later with a larger demand. This describes the

• A)door-in-the-face-effect.
• B)foot-in-the-door effect.
• C)lowball technique.
• D)highball technique.

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Definitions:

Fair Value

The estimated price at which an asset or liability could be traded in a fair transaction between knowledgeable, willing parties under no force of sale.

Identifiable Net Assets Method

A technique used in business combinations that involves valuing a company based on the fair value of its identifiable net assets, excluding goodwill.

Fair Value Enterprise Method

A method of valuing a business by estimating the price at which the entire enterprise could be sold in a current market transaction.

Share Issuance

The process by which a company distributes new shares to investors, thereby raising capital.