Of the Following,a Company Would Be LEAST Likely to Set

question 110

Multiple Choice

Of the following,a company would be LEAST likely to set prices low to ________.

• A)prevent competition from entering the market
• B)stabilise the market
• C)create excitement for a product
• D)prepare for an easy exit from a market
• E)match a competitor

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Definitions:

Credit Risk

The risk that a borrower may not repay a loan or meet contractual obligations, leading to financial loss for the lender.

Negotiated Increases

Adjustments to wages, prices, or other financial terms that are determined through the process of negotiation rather than being set by market forces or regulatory decree.

Pension Plan

An employment-based savings program where an employer must deposit funds into a designated account intended for an employee's retirement benefits.

Profit Sharing

A compensation strategy where employees receive additional payments based on the company's profitability, beyond their standard salaries or wages.