A Company That Intends to Maintain Low- End Pricing Policies

question 114

Multiple Choice

A company that intends to maintain low- end pricing policies to make the market unattractive for its competitors is using which of the following pricing objectives in its price planning?

• A)break- even
• B)competitive effect
• C)customer satisfaction
• D)profit
• E)sales share

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Definitions:

Investments

Assets purchased with the aim of generating income or appreciating in value over time, such as stocks, bonds, or real estate.

Stock Split

A corporate action in which a company divides its existing shares into multiple shares to boost the liquidity of the shares, though the overall market capitalization remains the same.

Market Price

The present cost at which a service or asset is available for purchase or sale in the open market.

Paid-In Capital

The amount of capital provided by shareholders in exchange for shares of a company's stock.