Which of the Following Statements About Price Is True

question 45

Multiple Choice

Which of the following statements about price is true?

• A) Pricing is the least important marketing mix element.
• B) Price is always a monetary value.
• C) Price can mean exchange of nonmonetary goods or services.
• D) Most consumers believe price has little influence on their purchase decisions.
• E) Pricing is unaffected by changes in the business cycle.

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Definitions:

EPS

EPS stands for Earnings Per Share, a financial ratio that measures the amount of a company's profit that is allocated to each individual share of its common stock.

Intrinsic Value

The actual, fundamental value of an asset, based on underlying perceptions of its true value including all aspects of the business.

ROE

ROE, or Return on Equity, measures a corporation's profitability by revealing how much profit a company generates with the money shareholders have invested.

Required Return

The minimum expected return an investor demands for an investment, considering its risk level.