Pure Products Is Introducing a New Paper Coffee Filter at a Dramatically

question 149

Multiple Choice

Pure Products is introducing a new paper coffee filter at a dramatically reduced cost.Pure Products expects that competitors will come out with similar products within a short period of time.Which pricing strategy will enable Pure Products to discourage competitors?

• A) Skimming pricing
• B) Penetration pricing
• C) Psychological pricing
• D) Cost-based pricing

---

Definitions:

Retained Earnings

Definition: The portion of a business's profits not distributed as dividends to shareholders but instead retained for reinvestment or to pay off debt.

Cash Dividend

A payment of earnings declared by a company's board of directors, distributed among shareholders in the form of cash.

Cash Dividends

Payments made to shareholders out of a corporation's earnings in the form of cash.

Date Of Record

The specified date on which a company determines its shareholders of record to receive dividends or the beneficiaries of stock splits.