Difference Between the Retailer's Cost and the Initial Selling Price

question 304

Multiple Choice

difference between the retailer's cost and the initial selling price is referred to as __________.

• A) markup
• B) maintained markup
• C) markdown
• D) differential markup
• E) original markup

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Definitions:

Par Value

The face value of a bond or stock as stated by the issuing company, which may differ from its market value.

Undervalued

A term used to describe assets or securities that are selling for a price presumed to be below their true intrinsic value.

Overvalued

A term used to describe securities or assets that are trading at a price higher than their intrinsic or fundamental value.