When Shopping for Tires for Your Automobile,you Notice That the Manufacturer

question 97

Multiple Choice

When shopping for tires for your automobile,you notice that the manufacturer you have selected has tires for your car priced low,average,and high,based upon performance and features.This is an example of what type of product-mix pricing

• A) Captive-price pricing
• B) Product-line pricing
• C) By-product pricing
• D) Two-part pricing
• E) Optional-feature pricing

---

Definitions:

Par Value

The face value of a bond or stock, as stated on the certificate, which is the minimum stated value.

Convertible Debentures

Bonds that can be converted into a predetermined amount of the issuing company's equity at certain times during their life, usually at the discretion of the bondholder.

Conversion Price

The predetermined price at which convertible security, such as a bond or preferred stock, can be converted into a specified number of shares of common stock.

Common Stock

A form of corporate equity ownership, a type of security that represents ownership in a corporation and a claim on part of the company’s profits.