ABC Company Tries to Set Products Apart from Its Competitors

question 50

Multiple Choice

ABC Company tries to set products apart from its competitors by setting a relatively high price compared to its competitors in order to develop and maintain an image of exclusiveness and quality. This type of pricing strategy is referred to as ______.

• A) volume objective
• B) profitability objective
• C) objective of managers
• D) prestige pricing

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Definitions:

Interest-bearing Note

An interest-bearing note is a debt instrument in which the borrower agrees to pay the lender interest in addition to repaying the principal amount borrowed.

Interest Revenue

Income earned on investments like bonds, savings accounts, and other interest-bearing securities.

Note Duration

The length of time until a note payable or receivable is due, which determines its repayment schedule.

Face Value

The nominal or original value of a financial instrument as stated by the issuer, such as the amount paid at maturity for bonds.