A Target Return Profit Objective Implies That a Company Chooses

question 103

Multiple Choice

A target return profit objective implies that a company chooses

• A)to set targets whose performance can be measured quickly such as by quarter or year.
• B)to give up immediate profit in exchange for achieving a higher market share in hopes of penetrating competitive markets.
• C)to set a profit goal that is often determined by its board of directors.
• D)to reduce as many non-essential costs as possible and forego investing in any further market or product research.
• E)base prices on a marginal return on investment.

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Definitions:

Spillover Costs

Indirect costs incurred by third parties who were not part of an economic transaction, often relating to negative environmental or health effects.

Public Choice Theorists

Economists who apply the theories and methods of economics to the analysis of political behavior.

Limited and Bundled Choices

Marketing strategies where consumers are offered packages or bundles of goods and services as a single combined product with restricted options.

Political Process

Involves the mechanisms and methods through which decisions, policies, and leaders are selected and implemented within a governing body or society.