When Dominant Pizza Is Willing to Sell a Pizza to a Student

question 92

Multiple Choice

When Dominant Pizza is willing to sell a pizza to a student who lives on-campus at a lower price than it sells the identical pizza to a student who lives a block away from the campus, the pizza firm is

• A)implementing unfair pricing practices.
• B)incurring a loss on on-campus sales.
• C)eliminating all competition.
• D)located close to the campus.
• E)practising price discrimination.

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Definitions:

Operating Activities

These are the core activities that a business performs to generate revenue, such as production, distribution, marketing, and sales.

Indirect Method

The indirect method is an accounting practice used in cash flow statements where net income is adjusted for non-cash transactions and changes in working capital to calculate cash flow from operating activities.

Cash Flows

The aggregate value of cash inflows and outflows within a corporation, significantly influencing its cash on hand.

Cash Flow Amounts

The total values of cash and cash-equivalents being transferred into and out of a business.