Exam 16: Pricing and Credit Decisions

Trade-credit agencies collect credit information on business firms and consumers in a given area.

Match the term with its definition.Some terms may not be used. a.Consumer credit b.Credit bureaus c.Credit card d.Credit e.Installment account f.Open charge account g.Revolving charge account h.Trade credit i.Trade credit agencies j.Value -A line of credit that requires a down payment,with the balance paid over a specified period of time

Which type of organization is a good source of consumer credit information?

Zemann's,a large firm selling custodial supplies to other businesses,has decided to begin offering trade credit.Its major objective in granting credit is

In many lines of business,trade credit terms are so firmly set by tradition that a unique policy is difficult for a small firm to implement.

Chocolate Concoctions,a maker of high end chocolate candies,decided to price its boxes of candies below the long-term market price.The decision was made to increase market share and discourage other firms from entering the chocolate market.Chocolate Concoctions was implementing a

Contrast penetration price and skimming price strategies.

Match the term with its definition.Some terms may not be used. a.Product line pricing b.Average pricing c.Follow-the-leader pricing d.Markup pricing e.Freemium strategy f.Prestige pricing g.Price lining strategy h.Price i.Skimming price strategy j.Value k.Variable pricing strategy -An approach based on applying a percentage to a product's cost to obtain its selling price

Setting a price for a product or sercvice is as much art as science.

Match the term with its definition.Some terms may not be used. a.Aging schedule b.Average pricing c.Bad-debt ratio d.Break-even analysis e.Break-even point f.Contribution margin g.Elastic demand h.Elasticity of demand i.Inelastic demand j.Value -Demand that does not change significantly where there is a change in the price of a product or service