The Most Important Pricing Objectives of Companies Doing Business in the United

question 96

Multiple Choice

The most important pricing objectives of companies doing business in the United States (including foreign-based firms) are(is) to:

• A) achieve a satisfactory return on investment.
• B) maintain market share.
• C) meet a specified profit goal.
• D) all of the above.
• E) none of the above.

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Definitions:

Risks and Benefits

The potential negative outcomes (risks) and positive outcomes (benefits) associated with a particular action or decision.

Lessor

The owner of a property who leases it to another party, known as the lessee.

Sales-type Lease

A lease agreement where the lessor transfers ownership of the asset to the lessee by the end of the lease term, often used in the financing of equipment.

Direct Financing Lease

A type of lease where the lessor purchases the leased asset specifically for leasing to the lessee, effectively providing finance to the lessee for the asset's purchase.