If General Motors Determines That It Wants to Sell 200,000

question 27

Multiple Choice

If General Motors determines that it wants to sell 200,000 Chevrolet Acadias and sets the price at $29,500 because it knows that at that price it will reach that goal, the firm would be using a ____ pricing method.

• A) cost-plus
• B) competition-based
• C) psychological
• D) comparison
• E) demand-based

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Definitions:

Portfolio Diversification

A risk management technique that mixes a wide variety of investments within a portfolio.

S&P/TSX 60 Index

A stock market index of 60 large companies listed on the Toronto Stock Exchange, representing leading sectors in Canada.

Alcan

Alcan was a Canadian mining company and manufacturer of aluminum products, which became part of Rio Tinto Alcan after its acquisition.

Systematic Risk

The inherent risk associated with the entire financial system or market, which cannot be eliminated through diversification.