The Three Major Considerations in Price Setting Are: Costs Set

question 108

Multiple Choice

The three major considerations in price setting are: costs set a "floor" to the price; ________; and customers' assessment of unique features establishes the price ceiling.

• A) the price of competitors and substitutes
• B) the price of substitutes establishes a "target price"
• C) competitors' prices and the price of substitutes provide an orienting point
• D) competitors' prices establishes a "target price" goal
• E) competitors' target-costing

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Definitions:

Corporate Bylaws

Formal rules governing the management and operations of a corporation, established by the board of directors.

Intrinsic Value

The inherent worth of a company, stock, or other financial asset, determined through fundamental analysis without reference to its market value.

Going Public

The act of selling stock to the public at large by a closely held corporation or its principal shareholders.

Primary Market

The financial market where new securities are issued and sold for the first time to investors, facilitating funds raising for corporations and governments.