Skimming pricing is another name for penetration pricing.
Answer the following statement true (T) or false (F)
False
Skimming pricing is where prices are set high and short-term profits are reaped on a new product, whereas penetration pricing sets prices low to gain a large market share.
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If a company borrows money from a bank as an installment note, the interest portion of each annual payment will
a. equal the interest rate on the note times the carrying amount of the note at the beginning of the period b. remain constant over the term of the note c. equal the interest rate on the note times the face amount d. increase over the term of the note
Typically, formal adjusting entries
a. are prepared prior to completion of the work sheet. b. are prepared at the same time as closing entries. c. need not be prepared if a work sheet has been completed. d. are entered directly into the ledger.
Which of the following is not a true statement?
a. SFAC No. 3 defines 10 elements of financial statements. b. SFAC No. 3 is a resolution of the definitions presented in the discussion memorandum for the conceptual framework project. c. SFAC No. 3 was amended by SFAC No. 6. d. SFAC No. 3 discusses in detail the three views of financial accounting mentioned in the discussion memorandum.
A disadvantage of hiring local managers is that they are often ______ with the home country of the IC and with its corporate culture, policies, and practices.
Fill in the blank(s) with the appropriate word(s).