The Salesman Told Todd That the High Price of the Dealerships

question 61

Multiple Choice

The salesman told Todd that the high price of the dealerships' automobiles was indicative of their high quality. The dealership is using a ____ pricing strategy.

• A) skimming
• B) penetration
• C) variable
• D) prestige

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Definitions:

Stock Split

A company strategy to divide its existing shares into a larger number of shares to enhance the liquidity of the shares.

Market Price

The now prevailing cost at which one can buy or sell an asset or service.

Shares Outstanding

The total number of shares of stock that are currently owned by shareholders, including share blocks held by institutional investors and restricted shares owned by company officers and insiders.

Stock Split

An action taken by a company to divide its existing shares into multiple shares to boost the liquidity of the shares, while keeping the market capitalization the same.