Which of the Following Is a Requirement for Setting Pricing

question 185

Multiple Choice

Which of the following is a requirement for setting pricing objectives?

• A) The objectives should be short-term oriented.
• B) There should be only one pricing objective.
• C) An evaluation of competitors' prices should be made.
• D) The cost structure should be identified.
• E) The objectives should be explicitly stated.

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Definitions:

Financing Activities

Transactions that involve raising funds to finance the company's operations and repaying debt; part of a firm's financial operations detailed on the statement of cash flows.

Principal Repayment

The portion of a loan payment that goes toward reducing the original amount borrowed, not including interest.

Financing Activities

Transactions that result in changes in the size and composition of the equity capital or borrowings of a company.

Debt Repayment

The act of paying back money previously borrowed from a lender, typically according to a prearranged payment schedule.