Which of the Following Statements About a Flexible-Price Policy Is

question 120

Multiple Choice

Which of the following statements about a flexible-price policy is NOT true?

• A)When using a flexible-price policy, the seller may risk violating the Competition Act.
• B)A flexible-price policy may be used when selling a house.
• C)This flexible-price policy may be used when selling a car.
• D)Also called dynamic pricing, it gives sellers very little discretion in setting final price.

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Definitions:

Revenues

Revenues are the total income earned by a company from its normal business activities, before any expenses are deducted.

Expenses

Costs incurred in the process of earning revenue, typically categorized as certain costs necessary to operate a business.

Assets Increase

A rise in the company's resources, resulting from transactions that bring future economic benefits to the entity.

Statement of Cash Flows

A financial statement that provides aggregate data regarding all cash inflows and outflows a company receives from its operational, investing, and financing activities.