In Markets Where Customers Are Sensitive to Price and Where

question 22

Multiple Choice

In markets where customers are sensitive to price and where internal efficiencies lead to cost advantages allowing for acceptable margins even with aggressive pricing,a ______ strategy can create a powerful barrier to market entry for other firms.

• A)Penetration
• B)Target ROI
• C)Price skimming
• D)Competitor-based pricing
• E)Value pricing

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Definitions:

Stock Certificates

Physical documents that represent ownership of shares in a corporation, indicating the number of shares owned by the shareholder.

Ownership

The legal right or state of having complete control and possession over property, assets, or items, which includes the ability to use, manage, and dispose of them.

Business Judgment Rule

A legal principle that protects corporate directors and officers from liability for decisions made in good faith and in the best interests of the corporation, even if the decisions are ultimately unsuccessful.

Insolvent

A financial state in which an individual or entity cannot meet its debt obligations as they come due because its liabilities exceed its assets.