According to the textbook, what are the three pricing objectives that a business could have?
What will be an ideal response?
A profit maximization (skimming) objective is where a business sets a high price for their product or service. This strategy is more effective when the product or service has been just introduced to the marketplace. A volume maximization (penetration pricing) objective is where prices are set low to capture a larger market share. The last objective, which firms do not really want to consider, is survival pricing. Companies that are struggling try to maximize their cash flows in the short term by using survival pricing to cover costs until the firm can improve its financial standing.
You might also like to view...
Cause-and-effect speeches lend themselves well to
a. informative and persuasive speeches. b. informative speeches and speeches on topics related to location. c. speeches on topics related to location and time. d. persuasive speeches and speeches on topics related to time.
The Superior Company acquired a building for $500,000. The building was appraised at a value of $575,000. The seller had paid $300,000 for the building 6 years ago. Which accounting principle would require Superior to record the building on its records at $500,000?
A. Monetary unit assumption. B. Revenue recognition principle. C. Measurement (Cost) principle. D. Business entity assumption. E. Going-concern assumption.
A car buyer in the ordinary course of business will take free and clear of a security interest created by any person who owned the automobile prior to the dealer
a. True b. False Indicate whether the statement is true or false
Solar Power Panels Corporation requires its employees to have a high school diploma, claiming a connection between a high school edu¬ca¬tion and job performance. In a suit against Solar Power under the Civil Rights Act of 1964, this is shown to have a discriminatory effect. Solar Power has
a. an affirmative action defense. b. a bona fide occupational qualification defense. c. a business necessity defense. d. no defense.