Which of the Following Is True of a High/low Pricing

question 18

Multiple Choice

Which of the following is true of a high/low pricing strategy?

• A)Conditioning customers to buy only on sale is the main characteristic of this strategy.
• B)In this strategy,a retailer charges prices that are on level with its competitors and avoids promoting sales.
• C)Most fashion,drug,and grocery stores avoid using this pricing strategy.
• D)The main disadvantage of this strategy is that it makes it difficult for a retailer to get rid of slow-selling merchandise.

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Definitions:

AMT Purposes

Refers to the objectives of the Alternative Minimum Tax, which is to ensure that individuals and corporations that benefit from certain exclusions, deductions, or credits pay at least a minimum amount of tax.

Tax Return

The form or forms used to report income and file income taxes with tax authorities, such as the IRS.

Gains

The increase in value of an asset or investment, representing the difference between the selling price and the purchase price.

Losses

Financial losses are considered for tax purposes as deductions from income earned, which can reduce taxable income and therefore tax liability.