Text Messaging and the Internet Have Lessened the Need for Telephone

question 36

True/False

Text messaging and the Internet have lessened the need for telephone interaction and face-to-face contact between seller and customer.

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Definitions:

Relevant Interest Rate

The appropriate rate used for discounting future cash flows or evaluating investment opportunities, reflecting the cost of capital.

Opportunity Cost

The cost of forfeiting the next best alternative when making a decision or investment.

Next Best Use

An economic concept referring to the most profitable or valuable alternative use of a resource if it is not used in its current manner.

Prime Rate

The interest rate that commercial banks charge their most creditworthy customers, usually large corporations.