A Firm Must Consider Many Factors in Setting Its Pricing

question 55

Multiple Choice

A firm must consider many factors in setting its pricing policy.We list these as a six-step process.Which of the following is NOT one of these steps

• A) Determining demand
• B) Selecting the pricing objective
• C) Researching reference prices in the target market
• D) Selecting the final price
• E) Selecting a pricing method

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Definitions:

Contracts

Legal agreements between two or more parties that are enforceable by law, outlining responsibilities, duties, and sharing of benefits.

IRR

Internal Rate of Return; the discount rate that makes the net present value of all cash flows from a particular project zero.

Cash Flow

The net amount of cash and cash-equivalents being transferred into and out of a business.

Project

A temporary endeavor undertaken to create a unique product, service, or result with specific objectives and defined beginning and end.