A Manufacturer Spends a Large Amount of Money on Research

question 244

Multiple Choice

A manufacturer spends a large amount of money on research and development leading to the introduction of a product that is likely to present the firm with a breakthrough opportunity. The manufacturer prices the product with the goal of achieving a 20 percent return on its investment. Which of the following types of pricing objectives is the company using?

• A) Target return.
• B) Profit maximization.
• C) Nonprice competition.
• D) Meeting competition.
• E) Dollar or unit sales growth.

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Definitions:

Moral Principles

Fundamental beliefs about what is right, wrong, or ethical that guide behavior and decision-making.

Ethical Problem

A situation or decision-making process involving conflicting values, principles, or duties, leading to moral dilemmas.

Illusion of Control

The false belief that one has influence or control over outcomes that are actually determined by chance.

Consideration of Duties

The reflective process of thinking about one's obligations and responsibilities.