Chapter 7

Question 1

Make pricing produce the greatest revenue for the business.

Answer 1

Maximization

Question 2

This is setting a low price in a competitive market to win dominant market share and raising it later.

Answer 2

Penetration

Question 3

This is setting a high price and systematically broaden a product offering to address more of the customer base at lower prices at the market progresses.

Answer 3

Skimming

Question 4

Method is a pricing strategy wherein a company adds all expenses which have been used in producing a product which include direct material cost, direct labor and overhead costs.

Answer 4

Cost-led Pricing/Cost plus pricing

Question 5

Is a method wherein a business prices its product and or service based on target rate of return on the investment or what the company anticipates from the investing in the business.

Answer 5

Target-return pricing

Question 6

Is a method that uses the perception of the customers on the worth or value of a product or service for pricing.

Answer 6

Value-based pricing

Question 7

Is starting a company with little or no capital

Answer 7

Bootstrapping or Self-funding

Question 8

Getting work, information, or opinions from a big group of people who give their data via the internet, social media, and smartphone apps.

Answer 8

Crowdsourcing

Question 9

Is the process of generating capital through the sales of shares.

Answer 9

Equity financing

Question 10

Raising money for an individual or company by collecting donations from a large number of individuals to fund a startup business.

Answer 10

Crowd funding

Question 11

Represent a formal record of the financial activities of an entity.

Answer 11

Financial Statement

Question 12

These are written reports that quantify the financial strength, performance and liquidity of a company.

Answer 12

Financial Statements

Question 13

Shows the expenses, revenue and profits for a particular period.

Answer 13

Financial statements

Question 14

Is a summary of a company’s total revenue and it’s operating expenses for a given period such as per month, per quarter of a year or for one year.

Answer 14

Income statement / Profit and loss statement

Question 15

Compose of asset, liabilities, and equity

Answer 15

Balance sheet / Statement of financial position

Question 16

Is a financial report that describes the sources of a company’s cash and how that cash was expended over a specified time order.

Answer 16

Cash flow statement