Which of These Pricing Strategies Will Help a New Firm

question 4

Multiple Choice

Which of these pricing strategies will help a new firm maximize cash flow? ​

• A)Lower price to raise volume
• B)Raise price and reduce direct costs
• C)Set a higher price to raise perceived value
• D)Sell online
• E)None of these choices

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Definitions:

Pretax Return

Income earned by a business before deductions for income taxes, serving as a measure of its profitability.

Investment Projects

Initiatives or plans undertaken by an organization or individual involving the allocation of resources with the expectation of generating future returns.

Salvage Value

The estimated residual value of an asset at the end of its useful life, which can be recovered through disposal or sale.

Pretax Return

Pretax Return refers to the earnings of a company before the deduction of taxes, often used to analyze profitability from core operations.