A Company Sells a Mattress That It Claims Promotes Good

question 91

Multiple Choice

A company sells a mattress that it claims promotes good health.It also convinces customers to become part of a club where they receive commissions if they get other people to join the club or buy mattresses.This is an example of:

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

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Definitions:

Industrial Reorganization

The process of restructuring the operations, structure, or ownership of companies in an industry to increase efficiency or adapt to market changes.

Implementation

The part of the entrepreneurial process that occurs when the organization is formed.

Entrepreneurial Process

It involves identifying a business opportunity, developing resources, and managing the business to achieve objectives.

Triggering Event

A specific event or occurrence that sparks the entrepreneur to proceed from thinking to doing.