A Business Using Price Lining Is Doing Which of the Following

question 120

Multiple Choice

A business using price lining is doing which of the following?

• A) trying to avoid the use of psychological pricing, which may be negatively received by customers
• B) trying to recover its research and development costs for a new product
• C) attempting to achieve a large market share before any competitors can enter the marketplace
• D) selling items in a product line at different prices
• E) engaging in potentially unethical pricing

Recognize how businesses can practice social responsibility in decision making.

Identify appropriate workplace actions to improve employees' quality of life.

Understand the impact of technology on ethical issues.

Recognize the responsibilities businesses have towards various stakeholders.

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Definitions:

Financing Activities

Transactions and events where cash flow comes into the company to help in financing its operations or to fund the expansion of its business.

Investing Activities

Transactions involving the purchase and sale of long-term assets and other investments not included in cash equivalents.

Accounts Receivable

The amount due to an enterprise by its clients for delivered goods or services awaiting payment.

ACP

Average Collection Period, a metric indicating the average number of days it takes for a company to receive payments owed by its customers.