After Managers Understand Both the Legal and the Marketing Consequences

question 47

Multiple Choice

After managers understand both the legal and the marketing consequences of price strategies,they should set a _____ price-the general level at which a company expects to sell a good or service.

• A) functional
• B) zone
• C) demand
• D) leader
• E) base

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Definitions:

Payback Period

The amount of time it takes for an investment to generate cash flows sufficient to recover its initial cost.

Salvage Value

The projected amount an asset is expected to generate when it is sold after its period of utility has ended.

Operating Costs

Expenses related to the day-to-day operations of a business, including rent, utilities, and salaries.

Useful Life

The expected period over which an asset is anticipated to be productive or beneficial for its owner.