To Increase the Popularity of Its New Range of Smartphones

question 25

Multiple Choice

To increase the popularity of its new range of smartphones, GizmoPro Inc., a mobile phone manufacturer, offered several accessories for free to customers who bought the smartphones. However, the management of GizmoPro Inc. soon found this an unsustainable practice. The company then decided to offer discounts on the accessories instead of giving them for free. These actions of the management of GizmoPro Inc. are aimed at _____.

• A)market share pricing
• B)profit maximization
• C)demand orientation
• D)sales maximization

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Definitions:

Stated Value

In accounting, a value assigned to share capital that does not have a par value; used for legal capital determination.

No-par Stock

Stock issued without a specified face value or par value.

Share

An individual portion of ownership in a corporation, represented by a stock.

Registrar

An official responsible for keeping a record, such as of a company's shareholders or university student enrollments.