An Internal Issue to Be Considered When Setting a Price

question 94

Multiple Choice

An internal issue to be considered when setting a price is

• A)whether there is a sole source or heavy competition.
• B)the life of the product or service.
• C)a price geared toward a minimum return on investment.
• D)whether there is seasonal demand or continual demand.

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Definitions:

Simple Interest

Interest figured only on the principal balance, or on the portion of the principal balance that is still due.

Closing Balance

The amount of money in an account at the end of a period, after all transactions have been accounted for.

Bank Account

A financial account maintained by a bank or another financial institution in which the deposits, withdrawals, and balances of a customer are recorded.

Maturity Value

The sum owed to an investor at the conclusion of a fixed-duration investment, encompassing both the original amount invested and the accrued interest.