A department store, pressured to meet year-end targets, liquidated a large amount of merchandise at low prices even though it was likely to create problems in the new year. This is an example of which pricing objective?

a) maximizing current profit

b) determining consumer objectives

c) managing for long-run profits

d) targeting market share goals

e) maximizing employee earnings

Question

Business

Addyson Foster

5 January, 07:24

A department store, pressured to meet year-end targets, liquidated a large amount of merchandise at low prices even though it was likely to create problems in the new year. This is an example of which pricing objective?

a) maximizing current profit

b) determining consumer objectives

c) managing for long-run profits

d) targeting market share goals

e) maximizing employee earnings

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Answers (1)

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Louisa · Answer 1

maximizing current profit.

Explanation:

Maximising current profit is the set of activities a business undertakes to ensure profit in the short term is positive. It also involves setting a product price that will give maximum profit, cash flows, return on investment in the short run.

This concept does not take into consideration future effects of action taken.

In this instance department store, pressured to meet year-end targets, liquidated a large amount of merchandise at low prices even though it was likely to create problems in the new year.

This is a profit maximising activity