If Local Shell Service Stations Look at BP and Caltex

question 4

Multiple Choice

If local Shell service stations look at BP and Caltex service stations' prices as the primary method of determining their own prices, Shell is using:

• A)price fixing, which considers competition to be less important than costs.
• B)price fixing, which considers costs to be less important than competitors' prices.
• C)market share pricing, which considers competition to be the ultimate pricing goal.
• D)competition-based pricing, which considers profit to be the ultimate pricing goal.
• E)competition-based pricing, which considers costs to be less important than competitors' prices.

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Definitions:

Net Float

Net float is the difference between the balance according to the bank's records and the balance according to the company's records, due to checks or other transactions in the process of clearing.

Collection Float

The time period between when a check is deposited in a bank and when the funds are made available, reflecting the bank's processing time.

Mail Float

The time difference between when a check is written and when it is actually cleared and funds are deducted from the payer's account.

Availability Float

The time difference between when a check is deposited in a bank account and when the funds are made available.