Valeo Fashions Has Just Introduced a New Line of Fashion

question 12

Multiple Choice

Valeo Fashions has just introduced a new line of fashion dresses for teens.The line will initially enter the market at high prices in a ________ strategy.

• A)penetration pricing
• B)skimming pricing
• C)price leadership
• D)yield management pricing
• E)value pricing

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Definitions:

Parmalat

An Italian dairy and food corporation that became famous for a massive corporate fraud and bankruptcy scandal in 2003.

WorldCom

A telecommunications company that was involved in one of the largest accounting fraud scandals in history, leading to its bankruptcy in 2002.

Volcker Rule

Part of the Dodd-Frank Wall Street Reform and Consumer Protection Act that restricts U.S. banks from making certain kinds of speculative investments that do not benefit their customers.

Proprietary Trading

When a firm trades stocks, bonds, currencies, commodities, derivatives, or other financial instruments with its own money, rather than its clients' money, for its own profit.