If a Company Was Looking at Establishing a Pricing Strategy

question 54

Multiple Choice

If a company was looking at establishing a pricing strategy for an event, it would need to ensure the __________ relationship was congruent for the target audience.

• A) safety-risk
• B) external supplier
• C) price-value
• D) timing
• E) bump-in

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Definitions:

Face Amount

The nominal value of a financial instrument as stated on the face of the document, not including interest or earnings.

Contract Rate

The agreed-upon rate for financial transactions or payments defined in a contractual agreement.

Effective Interest Method

A method of computing the amortized cost of a bond and the interest expense over its life by applying a constant interest rate.

Bond Discounts

The variance between a bond's stated value and the amount it fetches on the market when it ends up selling for beneath that stated value.