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A _______________ Pricing Strategy Often Causes Large Fluctuations in Sales

question 18

Short Answer

A _______________ pricing strategy often causes large fluctuations in sales.

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Definitions:

Business Judgment Rule

A legal principle that protects the decisions of corporate directors and officers, made in good faith and with reasonable diligence, from being second-guessed by courts.

Fairness Rule

The rule that requires managers to be fair to the corporation when they personally benefit from their business decisions.

Corporate Opportunity Rule

A legal doctrine preventing directors and officers of a corporation from taking a business opportunity for themselves without offering it to the corporation first.

Derivative Suit

A lawsuit brought by a corporation's shareholder on behalf of the corporation against a third party, often the corporation's executives or directors.

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