A technique that involves selling a product for a low price and charging a higher price for the accessories that accompany it is called ________. *

3 points

multiple-unit pricing

by product pricing

optional product pricing

captive-product pricing

Ivan and Mayra Rincon, founders of the online swimwear shop Orchid Boutique, needed help funding the highly seasonal nature of their business. Although the business had solid profit margins on its $3 million in annual sales, the Rincons were always scrambling to find cash to fund the next seasons inventory purchases. After several banks rejected their loan requests, they were able to secure $200,000 but had to pay $55,000 for it. This meant that the Rincons paid 15% of sales to the provider until they paid off the $255,000. The funding cost the company an effective annual interest rate of more than 50%. Why did several banks reject the loan requests? *

3 points

Banks did not get proof of the ability of Orchid Boutique to generate adequate cash flow to repay the loan.

The Rincons did not accept to put their assets as collateral.

The Rincons missed out repaying credit card loans.

Banks did not get the interest they asked for.

The Tanning Parlor is in the middle of the busy season. The owner Dana has hired extra help and encountered some unexpected repairs that have left her short of operating capital. What type of financing would Dana most likely use in this situation? *

5 points

Trade credit

A discounted installment contract

A line of credit

Floor planning

Most customers never complain to the business; in fact, for every complaint that a company receives, there are ________ other complaints that go unspoken, according to your textbook. *

3 points

17

2

7

10