In the Fall Semester,Alex Noticed That the Plastic Cola Bottles

question 42

Multiple Choice

In the fall semester,Alex noticed that the plastic cola bottles in the vending machines at his university had changed shape.Upon further investigation,he realized that each bottle contained 2 ounces less beverage than previous bottles,even though he paid the same price as last semester.The pricing objective of the beverage company is to:

• A)Increase profits by reducing the amount provided in each bottle.
• B)Build traffic at the vending machines by changing the shape of the bottle.
• C)Undercut the competition by changing the shape of the bottle.
• D)Increase market share by reducing the amount provided in each bottle.

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Definitions:

Entrepreneurs

Individuals who undertake the creation, organization, and ownership of a new business venture, facing considerable risk and uncertainty but potentially gaining significant rewards.

Commercial Lending Institutions

Banks and other financial entities that provide loans to businesses for the purpose of facilitating growth and operational expenses.

Legal Responsibilities

Obligations that are defined by law, which individuals or entities are required to fulfill.

Positive Cash Flow

A situation where the net amount of cash and cash-equivalents being transferred into and out of a business is positive, indicating financial health.