A Business Products Producer Which Has Given Its Salespeople the Right

question 197

Multiple Choice

A business products producer which has given its salespeople the right to adjust prices when necessary to get new business is using a ______________ policy.

• A) flexible-price
• B) target-return pricing
• C) penetration pricing
• D) one-price
• E) skimming pricing

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Definitions:

Profits

The financial gain obtained when the revenue earned from business activities exceeds the expenses, costs, and taxes needed to sustain the activities.

Assets

Resources owned by a business or individual that have economic value or potential to provide future benefits.

Liabilities

Financial obligations or debts that an individual or company owes to others, which must be settled over time through the transfer of economic benefits including money, goods, or services.

Retail Establishment

A business location that sells products or services directly to consumers for personal or household consumption.