LaTonya Horton Works for the Spurs Organization and Is Responsible

question 156

Multiple Choice

LaTonya Horton works for the Spurs organization and is responsible for managing ticket sales. She knows that ticket price and season ticket packages are related to consumers' interest in purchasing tickets and she tries to price individual tickets and packages at the level where ticket sales and profitability are maximized for the Spurs home games. LaTonya typically tests the _______ of demand by creating special events or special sales where she adjusts the price of tickets so she can determine the best price that maximizes profitability for the organization.

• A) price elasticity
• B) quantity
• C) feasibility
• D) sensitivity
• E) fluctuation

---

Definitions:

Internal Control

The process implemented by a company to ensure the integrity of financial and accounting information, promote accountability, and prevent fraud.

Purchase Discounts

A reduction in the price of goods bought, usually for early payment or in bulk quantity.

Net Method

An accounting technique that reports invoice amounts and accounts payable after deducting any available discounts for early payment.

Cash Discount

A reduction in the price paid for goods or services offered to the buyer as an incentive for early payment.