Which of the Following Is a Requirement for Setting Pricing

question 185

Multiple Choice

Which of the following is a requirement for setting pricing objectives?

• A) The objectives should be short-term oriented.
• B) There should be only one pricing objective.
• C) An evaluation of competitors' prices should be made.
• D) The cost structure should be identified.
• E) The objectives should be explicitly stated.

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Definitions:

Proprietorship

A business owned by one person.

Partnership

A business owned by two or more persons associated as partners.

Return on Equity

Return on Equity (ROE) measures a company's profitability by revealing how much profit a company generates with the money shareholders have invested.

Net Income

This is the amount of earnings left after all expenses and taxes have been subtracted from revenue.