Listed Below Are Five Terms Followed by a List of Phrases

question 14

Multiple Choice

Listed below are five terms followed by a list of phrases that describe or characterize each of the terms. Match each phrase with the correct term.
-Return on shareholders' equity

• A)Similar to an S corporation, but no limit on number of owners.
• B)Net income as a percentage of average book value.
• C)Paid-in capital and/or retained earnings affected when sold.
• D)Preferred practice is to disclose in the notes to the financial statements.
• E)Used in evaluating stock performance.

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Definitions:

Peak-Load Pricing

Pricing strategy that involves charging higher prices during peak times when demand is higher and resources are more constrained.

Third-Degree Price Discrimination

A pricing strategy where different prices are charged to different segments of customers based on their willingness to pay.

Second-Degree Discrimination

A pricing strategy where prices are varied depending on quantity sold, such as bulk discounts, or according to product versions.

Peak-Load Pricing

Peak-load pricing is a strategy that involves charging higher prices during periods of high demand and lower prices during periods of low demand to manage usage and balance supply and demand.