Running a big sale in order to generate enough cash flow to pay creditors is typical in a situation in which a firm's primary pricing objective is
A) keeping the status quo.
B) profit.
C) survival.
D) market share.
E) recovery.

Question

Quizplus · Accepted Answer

Running a big sale to generate cash flow is a strategy used when a firm's primary objective is survival. This is often done when a company is facing financial difficulties or is at risk of bankruptcy and needs to generate cash quickly to pay off creditors and other expenses. The emphasis is on generating revenue rather than making a profit or increasing market share.

Running a Big Sale in Order to Generate Enough Cash