Which of the Following Pricing Practices Is the Most Inappropriate

question 92

Multiple Choice

Which of the following pricing practices is the most inappropriate?

• A) Pricing a product,advertised for high quality and prestige,lower than the competition
• B) Lowering prices during happy hour,hence discriminating against those who work during that time period
• C) Lowering prices to capture maximum market share as the patent for a product approaches its termination
• D) Pricing a product low when a business is operating below capacity

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Definitions:

Book to Capital

The ratio of a company's net book value of its assets to its capital, indicating how much of the company's assets are financed by shareholder capital.

Purchases Journal

A journal used to record all purchases of goods and services on credit for a company's operational needs.

Creditor Accounts

Accounts payable to suppliers or lenders from whom a business has borrowed money or purchased goods on credit.

Accounts Payable Cr.

Accounts Payable Credit refers to the credit balance or entry in the accounts payable account, indicating the total amount the company owes to its suppliers or vendors.