A Firm Attempts to Find a Neutral Set Point for Price

question 64

Multiple Choice

A firm attempts to find a neutral set point for price that is neither low enough to raise the ire of competition nor high enough to put the value proposition at risk with customers.The firm is adopting a(n) _______ strategy.

• A)Stability pricing
• B)Target ROI
• C)Value pricing
• D)Average-cost pricing
• E)Target return pricing

---

Definitions:

Sales

The total revenue generated from goods or services sold by a company during a specific period, indicating the company's performance in generating business.

Project Analysis

is the process of evaluating the viability, feasibility, and profitability of a proposed project through various methods including financial analysis, risk assessment, and market research.

Account

A record that keeps track of financial transactions for a specific purpose, such as savings, checking, or investment dealings.

Tax Shield Approach

A method to reduce taxable income through allowable deductions, reducing overall tax liability.