If Coca-Cola Sets Its Twelve-Pack Price to Match the Price

question 254

Multiple Choice

If Coca-Cola sets its twelve-pack price to match the price charged by PepsiCo, Coca-Cola is using which of the following pricing methods?

• A)Demand-based
• B)Cost-based
• C)Reference pricing
• D)Competition-based
• E)Price leader

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Definitions:

Goodwill

An intangible asset that arises when a company acquires another business for more than the fair value of its identifiable net assets.

Annual General Meetings

Mandatory yearly gatherings of a company's executives, directors, and shareholders to discuss the company’s performance, its future, and to vote on key issues.

Dilution

A reduction in earnings per share or an increase in loss per share resulting from the assumption that convertible instruments are converted, that options or warrants are exercised, or that ordinary shares are issued upon the satisfaction of specified conditions.