Britney Is Fifteen Years Old and Wants to Open Her

question 89

Multiple Choice

Britney is fifteen years old and wants to open her own business selling cupcakes to local coffee shops and restaurants.She is having a tough time deciding whether to base her pricing objectives on market share,dollar sales,or unit sales.Regardless of which she chooses,her pricing objective can be categorized as:

• A) status quo
• B) profit oriented
• C) need oriented
• D) cost oriented
• E) sales oriented

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Definitions:

SEC

United States Securities and Exchange Commission, the federal agency responsible for enforcing federal securities laws and regulating the securities industry.

Stock Options

Contracts that give the holder the right, but not the obligation, to buy or sell a stock at a set price within a specified period.

GAAP

Generally Accepted Accounting Principles; a collection of commonly-followed accounting rules and standards for financial reporting.

Grant Date

In the context of stock options, the grant date is the date on which an employee is given the right to exercise their options at a set price.