Most Firms in the Business World Set Their Prices Using

question 122

Multiple Choice

Most firms in the business world set their prices using:

• A) federal price guidelines.
• B) demand-oriented price setting.
• C) cost-oriented price setting.
• D) supply and demand analysis.
• E) marginal analysis.

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Definitions:

Paid-in Capital

The amount of money that shareholders have invested in a company through the purchase of stock, above the par value of the shares.

Retained Earnings

Accumulated profits of a corporation that have been kept in the business and not paid out as dividends. Retained Earnings is part of stockholders’ equity.

Preferred Stock

A class of ownership in a corporation with a fixed dividend, receiving priority over common stock in dividend distribution and asset liquidation.

Preferred Stock

A class of stock that provides shareholders with a fixed dividend before any dividends are issued to common stockholders, often with no voting rights.