When Pricing a New Product, a Small Business Owner Should

question 42

Multiple Choice

When pricing a new product, a small business owner should strive to always satisfy which three objectives?

• A)Product acceptance, maintaining market share, and earning a profit.
• B)Quick acceptance, extensive distribution, and quickly recovering costs.
• C)Recovering initial development costs, recovering initial promotional costs, and discouraging competition.
• D)Discouraging competition, recovering development costs, and developing a prestige image.

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Definitions:

Revocation

The action of rescinding or recalling a decision, law, license, or agreement, making it no longer valid.

Tendered Bid

A formal offer submitted in response to an invitation to bid for a project, often including price and terms of service.

Caveat Emptor

A Latin phrase meaning "let the buyer beware," implying that the buyer assumes the risk about the quality and condition of the product being sold.

Standard Form Contract

A contract with fixed terms prepared by a business.