Annie Clarke Owns a Smartphone App Development Firm

question 19

Multiple Choice

Annie Clarke owns a smartphone app development firm. The way Annie prices her products is to determine what consumers are willing to pay, and then she backs off a bit to provide a cushion. The method that Annie used to determine her prices is called ________ pricing.

• A) predatory
• B) technical
• C) cost-based
• D) competitive-based
• E) value-based

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Definitions:

Stock

A form of security that indicates the holder has proportionate ownership in the issuing corporation.

Dividends

These are distributions of a portion of a company's earnings, decided by the board of directors, to a class of its shareholders.

Shareholders

Individuals or entities that own shares in a corporation, thus having an interest in its performance and profitability.

Corporation

A legal entity that is separate from its owners, providing them with limited liability, and has the ability to own assets, incur liabilities, and sell shares.