Which of the following companies would be most likely to use target return-on-investment pricing?
A)a farmer
B)a florist shop
C)a book publisher
D)a veterinarian
E)an automobile manufacturer

Question

Quizplus · Accepted Answer

Target return-on-investment pricing is a pricing strategy in which a firm determines the price that would yield its desired rate of return on investment. An automobile manufacturer, being a large-scale business, is more likely to use this strategy to ensure that its prices cover all costs and return a desired profit. The other businesses listed are either small-scale or service-based businesses that may rely on other pricing strategies such as cost-plus pricing or competition-based pricing.

Which of the Following Companies Would Be Most Likely to Use