Small Business Owners Get into Trouble When Determining Their Price

question 46

Multiple Choice

Small business owners get into trouble when determining their price floor when they:

• A)focus on what the customer will pay.
• B)assume their costs are the same as their competitors'.
• C)begin to track financial ratios to determine what they are doing.
• D)use the price floor as the minimum price in their acceptable price range.

---

Definitions:

Funds Flow

The movement of money into and out of an organization, project, or financial product, typically analyzed for assessing financial health.

Excise Tax

A tax on the sale or use of specific products or transactions.

Excise Tax

A tax levied on specific goods or activities, such as alcohol, tobacco, and gasoline, often intended to discourage their use or to raise revenue.

Sales Tax

A tax imposed by governments on the sale of goods and services, adding on to the purchase price paid by consumers.