Winston's Ice Cream Shop Has Been in the Same Location

question 50

Multiple Choice

Winston's Ice Cream Shop has been in the same location for two decades.Last week,a new ice cream shop opened up just one block down the street.Winston's decides to sell ice cream below cost in order to drive the new shop out of business.What kind of pricing is Winston's using?

• A) Predatory pricing
• B) Competitive pricing
• C) Ceiling pricing
• D) Inelastic pricing
• E) Keystoning

Understand the distinction between consumer products and business products.

Recognize the categories and types of business products, including installations, raw materials, accessory equipment, supplies, and services.

Identify and explain the concepts of derived demand in the context of business products.

Understand the structure and components of a product mix and product lines.

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Definitions:

Sales Tax

A tax imposed by governments on the sale of goods and services, collected by the retailer at the point of sale and passed on to the government.

Cash Refund

A repayment to a customer in cash for the return of products or for rebate claims.

General Journal

A primary accounting record used to record all non-specific financial transactions of a business in chronological order.

Sales Tax

A consumption tax imposed by the government on the sale of goods and services, collected by the retailer at the point of sale.