Fidelity Corp

question 176

Multiple Choice

Fidelity Corp. earned a 6 percent return on investment last year and wants to increase it to 10 percent this year. Which of the following pricing objectives is Fidelity seeking?

• A) Target return
• B) Growth in sales
• C) Growth in market share
• D) Maximize profits
• E) Nonprice competition

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Definitions:

Securities

Equities and debts that reflect a stake in publicly available corporate entities, or an indebtedness to a public or private organization, alongside options that confer rights to ownership.

Real Rate of Return

The annual percentage of profit earned on an investment, adjusted for inflation, representing the purchasing power gained.

Nominal Rate

The advertised or stated interest rate on a loan or bond, not adjusted for inflation.

Inflation Rate

The tempo at which the price level for standard goods and services heightens, thereby reducing the purchasing effectiveness.