Five Pricing Practices Are Closely Scrutinized Because of Potential Unethical

question 231

Multiple Choice

Five pricing practices are closely scrutinized because of potential unethical or illegal actions.They include: (1) predatory pricing; (2) price discrimination; (3) deceptive pricing; (4) geographical pricing;and (5) __________.

• A)price discounting
• B)lateral price fixing
• C)price fixing
• D)delayed payment penalties
• E)price discrimination

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Definitions:

Cash Dividend

A distribution of a portion of a company's earnings to its shareholders in the form of cash.

Financing Activities

Transactions between a company and its investors or creditors related to equity and debt, including issuing shares and obtaining loans.

Comparative Balance Sheet

A financial statement that presents the financial position of a company at two or more points in time, allowing for comparison and analysis of changes.

Cash Dividend

A payment made by a company out of its profits to its shareholders in the form of cash.