Price leadership refers to the setting of price in a market by a dominant company which is observed by other in the same market. It is a form of cooperative pricing. The method of price leadership is often used by matured and established industries.
INCREASE IN RIVALRY AMONG COMPANIES AND DECREASE IN PRICE AND PROFITS can occur when the price leadership model break down.
Companies are divided into one or more categories based on their general objectives; capitalization and structure (also location).
<h3>
What do corporation do?</h3>
A corporation is a type of legal entity with the power to hold property, sign contracts, and bring and receive legal actions. It is a group of people who collaborate to make a profit on their investment, comprising labour and monetary suppliers.
<h3>
Who or what owns a corporation?</h3>
A corporation's owners are its shareholders, usually referred to as stockholders, who acquire an interest in the company by acquiring shares of stock. A board of directors is chosen by shareholders, and they are in charge of running the business.
Learn more about stockholders: brainly.com/question/28017828
#SPJ4
Answer:
d. pre-acquisition market value of the target company.
Explanation:
An acquisition premium is the amount by which the price offered for an existing business exceeds the pre-acquisition market value of the target company.
An acquisition premium gives the difference between the actual amount of money paid in acquiring a target firm and the estimated real value of obtaining the firm before the acquisition.
Acquisition premium are usually recorded on the balance sheet as "goodwill."
Answer: If i am the general manager of the organization i will try to make a survey about customer relation in other competitive organization before i can conclude whether it is wise to cut down cost through removing giving out free gifts to customers like the free pop corn, coffee etc. Customers will choose other organizations where they can get the same quality service and other benefits especially in a perfectly competitive market. Rather i will suggest more profit can be made by slightly increasing the cost of services rendered to customers from which the cost of the freebies can be regained.
Explanation:Customer's satisfaction and profit maximization are the two main objectives of a firm. It is only when an organization is able to maintain good customer relationship with their customers that profit can be maximized regardless of how efficient their other services are.
Cost-plus pricing<span>, also known as mark-up </span>price<span>, takes place when a firm calculates its unit costs and then adds a percentage profit to determine </span>price<span>.</span>
