Department Stores Often Use ________ Pricing in Which They Have

question 46

Multiple Choice

Department stores often use ________ pricing in which they have regular prices which are relatively high, but offer special sales where prices are set lower than competitors.

• A) penetration
• B) bundling
• C) strategic
• D) high-low

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Definitions:

Equity Holders

Investors who own shares of stock in a company, giving them a claim on the company's assets and earnings.

ROE

Return on Equity, a measure of a corporation's profitability by revealing how much profit a company generates with the money shareholders have invested.

Plowback Ratio

A measure indicating the proportion of earnings retained by a company for reinvestment, rather than being paid out as dividends.

Present Value

The current value of a future sum of money or stream of cash flows given a specified rate of return, often used in the time value of money calculations.