The Pricing Strategy in Which the Seller Charges a Relatively

question 96

Multiple Choice

The pricing strategy in which the seller charges a relatively low price on a new product is called _____ policy.

• A) underscoring
• B) bundle
• C) penetration
• D) skimming

---

Definitions:

Par Preferred Stock

A type of preferred stock that has a specified face value (par value) which determines the dividend calculation and has priority over common stock in dividend payments and upon liquidation.

Par Common Stock

The nominal or face value assigned to a share of common stock, as declared in the corporate charter, which has little bearing on the market value of the share.

Market Value

The present cost at which a service or asset is available for purchase or sale in the market.

Share-based Compensation

A form of remuneration where employees receive shares of the company's stock as part of their compensation package.