Amazon Customers Complained When They Discovered That the Online Retailer

question 332

Multiple Choice

Amazon customers complained when they discovered that the online retailer was offering different customers different prices for the same product. Company officials admitted that the company was trying to see how much it could charge for an item before buyers balked. No matter what the reasoning behind it, Amazon.com was using

• A)horizontal price fixing.
• B)price discrimination.
• C)resale price maintenance.
• D)predatory pricing.
• E)bait and switch pricing.

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Definitions:

Accounts Receivable

Money owed to a company by its customers for goods or services that have been delivered but not yet paid for.

Bank Borrowings

Funds that have been obtained from a bank through various types of loans.

Cash Management

The practice of collecting, managing, and investing cash in a way that meets the financial objectives of the organization.

Financing Activities

Transactions involving raising capital or repaying funds to owners and creditors, reflected in a firm's cash flow.