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ser-zykov [4K]
3 years ago
12

The practice of setting the selling price below cost with the intent to drive competitors out of business is: 28) A) target pric

ing. B) predatory pricing. C) peak-load pricing. D) target costing.
Business
1 answer:
Dmitrij [34]3 years ago
5 0

Answer:

The correct answer is letter "B": predatory pricing.

Explanation:

Predatory pricing refers to companies setting prices below the average level in an attempt to wipe out competition. In the beginning, consumers may benefit from the low prices but after the competition has disappeared, the predatory company raises the prices, but, in this scenario, consumers do not have substitutes from where to choose. The predatory company became a monopoly.

Predatory pricing practices are forbidden by the Federal Trade Commission (FTC) in the U.S.

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We can calculate for the total stockholders’ equity by using the formula:

Total stockholders’ equity = Number of Shares * Price per Share – Deficit Balance

Substituting our given values:

Total stockholders’ equity = 19,000 shares * ($12 / share) - $75,000

Total stockholders’ equity = $153,000

5 0
3 years ago
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3 years ago
An organization that collects and distributes money to candidates is known as a(n)_______.
MA_775_DIABLO [31]

Answer:

political action committee

Explanation:

A political action committee is an organization set up by a political party to gather funds through the contribution and donation from members of the party. The funds collected by the political action committee are used to support the party candidate or campaign against the opposition party candidate. The political action committee is not obligated by law to disclose the identities of donors.

5 0
4 years ago
An insurance company forwards fixed annuity premiums to their general account, where the money is invested. The guaranteed minim
tatyana61 [14]

Answer: c. 3%

Explanation:

The Insurance company guaranteed that the minimum rate that they will pay their policyholders as 3%. Just because the investments are now drawing only 2.5% due to the economic downtown does not absolve them of this agreement.

They must therefore still pay their policy holders the minimum return guaranteed which is 3%.

3 0
3 years ago
The cost of equity is: Group of answer choices equal to the amount of asset turnover the weighted average cost of capital the in
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Answer:

the rate of return required by investors to incentivize them to invest in a company

Explanation:

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