Firms should be careful with a ________ strategy, as price is a cue for developing customer perceptions of product quality. The value proposition may be reduced if a low price belies the product's actual quality attributes.
A. penetration pricing
B. price skimming
C. target ROI
D. competitor-based pricing
E. value pricing
Answer: A
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Which of the following is not a correct statement regarding deferred tax asset valuation allowance?
A. Companies without a history of profitability may generate negative income tax expense in the year they first generate a profit if they have a valuation allowance that is reversed in the year of profitability. B. Profitable companies will never have valuation allowances against deferred tax assets. C. If a deferred tax asset may not be fully realized in future periods, a valuation allowance is required to reduce the asset to the amount that is more likely than not to be realized. D. The determination of whether or not a valuation allowance is necessary is based on subjective assessment.
Gershwin, a musical toy for toddlers, is in the maturity stage of the product life cycle, and Gershwin managers have decided to modify the product. What will Gershwin managers most likely do to achieve this goal?
A) change distributors B) offer coupons for the toy C) change the packaging of the toy D) launch an online advertising campaign E) cut prices of the toy to attract new customers
Inferior Company, which is based on South Carolina, makes and sells products that are poorly made. Jack, who is a resident of North Carolina, buys an Inferior product and suffers an injury through its use. The diversity of citizenship between these parties means that
A. federal and state courts have concurrent jurisdiction. B. federal courts have exclusive jurisdiction. C. no court has jurisdiction. D. state courts have exclusive jurisdiction.
Legal objectives are included in the operational planning process during the setting up of a business plan.
Answer the following statement true (T) or false (F)