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Choose the… (Class 12 Business Studies SQP 2023-24, Q9)

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Business StudiesCBSE Class 12 · Sample paper, session 2023-24 · 1 mark · MCQ

CBSE Class 12 Business Studies sample paper 2023-24: question 9

From the official CBSE sample question paper for 2023-24, section A, question 9, for 1 mark. Try it first; the hints and our step-by-step solution are below.

Q9 · 1 mark · MCQMarketing

Choose the incorrect statement about pricing objectives as a factor affecting the price of a product.

  1. (A)If a firm's objective is to maximize profits in the short run, it should charge maximum price for its products.
  2. (B)If a firm's objective is to capture market share, it should keep low price of its product.
  3. (C)If a firm wants to attain product quality leadership, it should charge lower prices.
  4. (D)If a firm is facing problems in survival due to stiff competition, it may offer discount on its products.

Source: official sample paper from cbseacademic.nic.in (PDF). See it in the full Sample paper 2023-24.

Hints

Open one hint at a time and try again before the next.

Hint 1

Look for the statement that contradicts the objective.

Hint 2

Who pays for research and high quality?

Step-by-step solution

Each step shows the marks it earns, as an examiner would award them. Checked by an independent re-solve from the question paper.

  1. A, B and D are correct pricing-objective statements (short-run profit: high price; market share: low price; survival: discounts).

  2. C is incorrect: product quality leadership calls for higher prices to cover high quality and research costs. Option (C).

    1 mark

Answer: (C) If a firm wants to attain product quality leadership, it should charge lower prices.

Where the marks are

  • Quality leadership needs higher prices (1 mark)

Revise the chapter

  • Chapter: Marketing (notes, formulas, where marks are lost and every past question)
Practise this chapterBoard-style questions from Marketing, one at a time, marked against the answer key and marking points.Back to the full paperSample paper 2023-24: every question, by section.

The question is transcribed from the official paper; figures are described in words. The solution, hints and chapter tag are ours. Spotted an error? Write tosupport@questionbuddy.in.