General Motors Prices Its Automobiles to Achieve a 15 to 20

question 117

Short Answer

General Motors prices its automobiles to achieve a 15 to 20 percent profit on its investment.This approach is called ________.
value-based pricing
going-rate pricing
cost-plus pricing
low-price image
target return pricing

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Definitions:

Loan Repayment

The process through which a borrower returns borrowed money to the lender, usually in scheduled installments.

Commercial Paper

An unsecured, short-term debt instrument issued by a corporation, typically for the financing of accounts payable and inventories, and meeting short-term liabilities.

Issue Date

The date on which a document, such as a check, bond, or stock, is issued or goes into effect.

Simple Interest

Interest calculated only on the initial amount of money deposited or borrowed, without compounding.