The Pricing Strategy That Is Used as a Competitive Weapon

question 21

Multiple Choice

The pricing strategy that is used as a competitive weapon to drive weaker competitors out of a national market is known as:

• A)strategic pricing.
• B)predatory pricing.
• C)multipoint pricing.
• D)market-based pricing.

---

Definitions:

Stock Market

A marketplace where shares of public companies are bought and sold, reflecting the economic trends and investment climate.

Return on Equity

Return on Equity (ROE) is a measure of financial performance calculated by dividing net income by shareholders' equity, indicating how effectively management is using a company’s assets to create profits.

Financial Statements

Documents that summarize a company's financial performance and position, including detailed reports on assets, liabilities, income, and cash flows, essential for assessing fiscal health.

Stock Market

A public marketplace for buying, selling, and trading stocks, where the prices of these stocks are determined by supply and demand.