Which of the Following Statements Regarding Pricing Objectives Is Most

question 90

Multiple Choice

Which of the following statements regarding pricing objectives is most accurate?

• A)Generally, the greater the demand for a product, the higher the price that can be set.
• B)At the corporate level, when setting pricing objectives and constraints, a firm must disregard current conditions in the marketplace because they are too temporal for long-term planning.
• C)Pricing objectives must always be set, but they are rarely achieved; they provide a framework rather than actual expectations.
• D)It is possible to create pricing objectives with the greatest range possible in order to anticipate any and all changes in the marketing environment.
• E)Even if a firm is trying to satisfy its obligations to its customers and society, in general it should never forego making a profit.

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Definitions:

Third Market

Trading venue for exchange-listed stocks that occurs off the official exchange, often involving large institutional investors through over-the-counter (OTC) transactions.

Fourth Market

Trading of securities directly between investors, bypassing traditional brokerage and exchange platforms.

OTC Markets

Over-the-counter markets refer to decentralized markets where trading occurs directly between two parties without the supervision of an exchange.

Institution-To-Institution Trading

The buying and selling of securities between institutional investors, like pension funds and mutual funds, rather than individual investors.