Which of the Following Statements About a Flexible-Price Policy Is

question 61

Multiple Choice

Which of the following statements about a flexible-price policy is True?

• A) Flexible pricing means offering the same price to all customers who purchase under essentially the same conditions and in the same quantities.
• B) The availability of computer pricing databases has had no effect on the popularity of flexible-price policies.
• C) Flexible pricing often involves price negotiation between the buyer and seller.
• D) Flexible pricing does not cause channel conflict.
• E) None of these statements about a flexible-price policy is true.

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Definitions:

Equity Method

An accounting technique used by a company to record its investment in another company, where the investment represents a significant influence over the investee.

Consolidated Net Income

The total net income of a parent company and its subsidiaries after elimination of inter-company transactions and accounts.

Net Income

The amount of earnings left over after all expenses and taxes have been subtracted from total revenue.

Dividends

Payments made by a corporation to its shareholders, out of its profit or reserves, usually on a regular basis.