Initially, the Health Club Offers a Very Low Enrolment and Monthly

question 32

Multiple Choice

Initially, the health club offers a very low enrolment and monthly fee to attract customers and to drive out competition and be the only gym in that particular town.This is an example of:

• A)predatory pricing.
• B)vertical price fixing.
• C)horizontal price fixing.
• D)price discrimination.
• E)bait and switch.

---

Definitions:

Investor

An individual or institution that allocates capital with the expectation of receiving financial returns, involving various forms of assets.

Stockholders' Claim

The rights of shareholders to a company's assets, typically after debts have been paid.

Net Income

Net Income is the total profit of a company after all expenses, including taxes and operating costs, have been deducted from total revenue.

Dividends

Rephrased: Payments made by a corporation to its shareholders, usually as a distribution of profits.