When Apple Inc

question 120

Multiple Choice

When Apple Inc.developed and introduced the iPhone it was unique as it essentially combined a cellular phone with an iPod,an Internet browser,and email capabilities.As such,in the short run it seemed that demand for the product would be inelastic,with no real existing competition.The recommend pricing strategy in such a situation would be:

• A) low initial price,rising slightly when entering the growth stage
• B) high initial price,falling slightly when entering the growth stage
• C) high price,continuing through growth and maturity
• D) low price,continuing through growth and maturity
• E) low price initially,rising constantly through growth and into maturity

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Definitions:

Common Stock

Represents ownership shares in a corporation, providing voting rights and potential dividends to shareholders.

Paid-In Surplus

Additional capital that is contributed by shareholders above the par value of the shares, also known as additional paid-in capital.

Shareholders' Equity

The residual interest in the assets of a corporation after deducting liabilities, representing ownership equity.

Net Income

The total earnings of a company after all expenses and taxes have been deducted from total revenue, representing the company's profit.