Which of the Following Is True of Pricing Based on Competitor-Oriented

question 8

Multiple Choice

Which of the following is true of pricing based on competitor-oriented strategies?

• A)Value is only implicitly considered in this type of strategies.
• B)Prices are decided based on the value perceived by customers.
• C)Prices for new products are always low to reduce competition.
• D)Products are priced to ensure a standard return on investment.
• E)A profit margin is set, which determines the price of products.

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Definitions:

Foreign Subsidiary

A company that is based in a different country from the parent company but is owned or controlled by the parent company.

Functional Currency

The main form of money used in the leading economic setting where a business functions.

Current Liabilities

Financial obligations or debts of a business that are due to be settled within one year from the balance sheet date.

Net Monetary Assets

The difference between monetary assets and monetary liabilities, used to assess liquidity position.