If Arnott's Biscuits (Which Has Products in Almost All Submarkets)was

question 33

Multiple Choice

If Arnott's biscuits (which has products in almost all submarkets) was to use price as a competitive weapon to drive weaker competitors out of the national market,it would be pursuing a ____________tunity.

• A)product development
• B)mass marketing
• C)market penetration
• D)predatory pricing

---

Definitions:

Discount Factor

A multiplier used in discounting to calculate the present value of future cash flows, representing the time value of money.

Working Capital

The contrast between a corporation's immediate financial resources and outstanding obligations, illustrating its short-term monetary health and effectiveness in running its operations.

Net Present Value

A method used to evaluate the profitability of an investment by calculating the difference between the present value of cash inflows and the present value of cash outflows over a period.

Capital Budgeting

The process of evaluating and selecting long-term investments that are consistent with the firm's goal of wealth maximization.