Which of the Following Pricing Strategies BEST Describes Price Lining

question 45

Multiple Choice

Which of the following pricing strategies BEST describes price lining?

• A) setting an initial low price to establish a new product in the market
• B) setting an initial high price to cover new product costs and generate a profit
• C) setting individually negotiated prices for certain categories of products
• D) setting a limited number of prices for certain categories of products
• E) setting individually negotiated prices for all categories of products

---

Definitions:

Expected Return

The weighted average of all possible returns for an investment, accounting for the probability of each outcome.

Dividend Yield

The dividend yield represents a financial metric illustrating the annual dividend payments of a company as a proportion of its current stock price.

Preemptive Right

A shareholder's right to buy additional shares in a company before the company offers them to the general public, to maintain their percentage of ownership.

Ownership Interests

Legal rights and claims a person or entity has in a company, typically represented in the form of stocks or shares.