Financial Management Review Cards Chapter 7
Terms in this set (19)
Having to do with a person's honesty and moral attributes
Retail store where people sell items and the owner of the shop gets a percentage of the sale
The ability to walk away from a purchase when negotiating
Process by which the holder of a mortgage sells the property of a homeowner who has not made interest and/or principal payments on time as stipulated in the mortgage contract
A public sale in which property or items of merchandise are sold to the highest bidder.
The process of quantifying costs and benefits of a decisions
The difference between the wholesale price and retail price
Type of yard sale with more items, usually the entire contents of a household
To bargain for a lower price
True or False: Using cash gives you more bargaining power than using credit.
True or False: Being married (or emotionally attached)to a purchase will cause you to lose bargaining power
Getting the best deal on a purchase involves doing all of the following except:
A. Having Patience
B. Being first in line for a new product
D. Shopping around to find the best deal
B. Being first in line for a new product.
Which of the following is typically not a good place to find a deal?
A. Consignment Shops
D. Online Auctions
Which of the following describes why using cash is a great bargaining tool?
A. Cash is visual.
B. Cash has immediacy
C. Cash is emotional.
D. All of the above.
D. All of the Above.
Summarize the benefits of being a wise consumer.
You will spend less money. You know where to find the deals. You are aware of marketing technique. You learn how to manage money
Explain how walk away power can be used as a negotiating tool.
You use it when you do not need to buy an item allows to actually negotiate. If you are married to a purchase you can't negotiate.
What role does research play in getting good deals on purchases?
You have check different sales. You gotta do your homework.
Why is honesty an important component of bargaining??
Businesses want honesty to keep the business open. People will take advantage of.
Describe the cost benefit of buying slightly outdated products.
You will pay less money.