Compare the following statements and select the one that is accurate regarding a profit maximization strategy.
A. Profit maximization should not be used as a permanent pricing objective, but is effective in allowing a firm to endure a difficult time.
B. A profit maximization strategy sets prices low to encourage a greater volume of purchases and lower the level of involvement for the consumer.
C. For a profit maximization strategy to work over the long term, the firm must have a significant cost or resource advantage over competitors.
D. Profit maximization assumes that customers value a product's differentiating attributes and are willing to pay a higher price to take advantage of those attributes.
E. A profit maximization strategy is best used when a product is in the growth and maturity stage of the product life cycle.
Answer: D
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Answer the following statements true (T) or false (F)
1. Current liabilities must be paid either in cash or with goods and services within one year or within the entity';s operating cycle, if the cycle is longer than a year. 2. Any portion of a long-term liability that is due with the next year is reported as a current liability. 3. The IFRS definitions of current and long-term liabilities are much different than the U.S. GAAP 4. Amounts owed for products or services purchased on account are accounts receivable.
Decisions made in each of the 4 Ps influence the other elements of the marketing mix
Indicate whether the statement is true or false
Which of the following factors should managers use to engage their employees?
A) Maintain a positive perspective B) Provide recognition and encouragement C) A strengths-based approach D) All of the above
On January 1, 2016, Martini, Inc acquired a machine for $1,050,000
The estimated useful life of the asset is five years. Residual value at the end of five years is estimated to be $100,000. What is the book value of the machine at the end of 2017 if the company uses the straight-line method of depreciation? A) $630,000 B) $670,000 C) $570,000 D) $629,996