The Pricing That Is Intended to Drive Competitors Out of the Market

question 71

Multiple Choice

The pricing that is intended to drive competitors out of the market or keep competitors from entering the market by fixing very low prices is called:

• A)bid rigging.
• B)bait-and-switch.
• C)predatory pricing.
• D)referral selling.
• E)pyramid selling.

---

Definitions:

Control Account

An account in the general ledger that summarizes and checks the accuracy of individual records in subsidiary ledgers.

General Ledger

A comprehensive set of accounts that records all transactions of a business, providing the foundation for financial statements.

General Ledger

The main accounting record of a company which uses double-entry bookkeeping, consisting of all balance sheet and income statement accounts.

Sales Journal

A specific type of journal used to record the sales of goods or services on credit.