Setting an Annual Target of a Specific Dollar Volume of Profit

question 222

Multiple Choice

Setting an annual target of a specific dollar volume of profit is referred to as

• A) target profit pricing.
• B) target return-on-investment pricing.
• C) loss-leader pricing.
• D) at-, above-, or below-market pricing.
• E) yield management pricing.

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Definitions:

Dividends

Money disbursed by a business to its members, principally originating from the enterprise's earnings.

Financial Intermediary

An institution that pools investors’ money and invests it on their behalf giving the investors shares of itself. Mutual funds are the primary example.

Indirect Method

A way of calculating cash flows from operations by starting with net income and adjusting for changes in non-cash accounts.

Investment Banks

Financial institutions that assist individuals, corporations, and governments in raising capital, advising on mergers and acquisitions, and providing other financial services.