By Using ________, a Company Deliberately Sets a Low Price

question 18

Multiple Choice

By using ________, a company deliberately sets a low price with the intention of driving its competition out of business.

• A) price-fixing
• B) price lining
• C) surge pricing
• D) predatory pricing
• E) loss leader pricing

---

Definitions:

Assets

Resources controlled by a business as a result of past events and from which future economic benefits are expected to flow to the business.

Liabilities

Financial obligations or debts that a company owes to others, which must be settled over time.

Revenue

The total amount of money earned by a business from its operational activities, before any expenses are subtracted.

Equipment Account

An account on a company's balance sheet that reports the value of the equipment that the company owns.