At the End of February,the Hearts and Flowers Store Reduced

question 77

Multiple Choice

At the end of February,the Hearts and Flowers store reduced the price on all of its Valentine's Day's candy by 50 percent in order to liquidate this inventory.What type of pricing strategy is being used in this example?

• A) target return on investment
• B) satisfactory profit
• C) sales maximization
• D) profit maximization

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Definitions:

Owner's Equity

The residual interest in the assets of a business after deducting liabilities, representing the owner's claim against the company assets.

Drawing

An account used to record the funds withdrawn from a business by its owner for personal use, reducing the owner's equity.

Owner's Equity

Owner's equity represents the owner's claims to the assets of a business after all liabilities have been subtracted.

Consuming Services

Refers to the use of services by individuals or companies leading to their consumption or depletion over time.