When Estimating a Competitor's Reaction to a Price Change Which

question 6

Multiple Choice

When estimating a competitor's reaction to a price change which of the following should be assessed?

• A)Their strategic objectives
• B)Their past history
• C)Their self interest
• D)All of the above should be considered

---

Definitions:

Operating Lease

A lease agreement that allows for the use of an asset but does not convey rights of ownership to the lessee.

GAAP

GAAP (Generally Accepted Accounting Principles) is a collection of commonly-followed accounting rules and standards for financial reporting.

Capital Lease

A lease agreement in which the lessee gains ownership or a substantial portion of the rights to the asset by the end of the lease term, treated as a purchase in accounting.

Lessee

A person or entity that leases property or equipment from another, known as the lessor, under a lease agreement.