Short-Term Price Reductions Like Two-For-One Commonly Used to Increase Trial

question 237

Multiple Choice

Short-term price reductions like two-for-one commonly used to increase trial among potential customers or to retaliate against a competitor's actions is commonly referred to as a __________.

• A)coupon
• B)deal
• C)sample
• D)premium
• E)product placement

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Definitions:

Stock Split

A corporate action that increases the number of a company's shares by issuing more shares to current shareholders, thus reducing the price per share.

Common Stock Dividend

A portion of a company's earnings distributed to shareholders of its common stock, typically in the form of cash or additional shares.

Common Shares Outstanding

The total number of shares of a company that are owned by shareholders, excluding shares owned by the company itself.

Treasury Stock

Shares previously counted among a company's outstanding shares but were later bought back by the business.