A Firm's Pricing Objectives Must Be Compatible With

question 107

Multiple Choice

A firm's pricing objectives must be compatible with:

• A)its competitors' pricing objectives.
• B)its historical price objectives.
• C)product quality.
• D)its marketing objectives.
• E)the laws of demand in the industry.

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Definitions:

Legal Cause

A legally recognized reason that directly links an action to a legal consequence, establishing liability.

Product Liability

The legal liability a manufacturer or trader incurs for producing or selling a faulty product.

Negligence

The failure to exercise the care that a reasonably prudent person would exercise in similar circumstances.

Garnishment

A proceeding in which a creditor legally seizes a portion of a debtor's property, such as wages, that is in the possession of a third party, such as an employer.