Pricing Objectives Involve

question 146

Multiple Choice

Pricing objectives involve

• A) reconciling the prices charged by an organization to the values set forth in its business mission.
• B) taking specific steps to capitalize on an organization's internal strengths as they apply to price.
• C) specifying the role of price in an organization's marketing and strategic plans.
• D) taking specific steps to compensate for an organization's weaknesses as they apply to price.
• E) subjectively setting intrinsic values to all products and services offered by an organization.

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Definitions:

Derivative Financial Instrument

is a financial contract whose value is based on the performance of underlying assets, indices, or interest rates, used for speculation, hedging, or risk management.

Option

A financial instrument that gives the holder the right to buy or sell a certain number of shares or debentures in a company by a specified date at a stipulated price.

Shares

Shares represent portions of equity in a company or financial asset, entitling holders to a proportional share of profits through dividends, when declared.

Equity Transaction

Transactions that affect the ownership interest of shareholders in a company, including issues, buybacks, and sale of shares.