Which of the Following Is an Important Question That Is

question 3

Multiple Choice

Which of the following is an important question that is answered in a business plan?

• A) What are the marketing strategies used by the entrepreneur's competitors?
• B) What are the trade restraint strategies used by businesses in the external environment?
• C) What are the entrepreneur's goals and objectives?
• D) What are the overhead costs of the entrepreneur's venture?
• E) How will the entrepreneur divest strategic business units?

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Definitions:

Volume Maximization

A pricing objective that involves setting prices low to encourage a greater volume of purchases; also called penetration pricing.

Penetration Pricing

A pricing strategy aimed at entering a new market by setting a low price initially to attract customers and gain market share.

Escalator Clause

A section in a contract that provides for price increases if certain, specified conditions occur.

Loss-leader Pricing

A pricing strategy where a product is sold at a loss to attract customers, with the expectation they will make additional purchases of other items at regular prices.