Three different pricing objectives relate to a firm's profit. One objective, known as ________, occurs when a firm sets a profit goal, usually determined by its board of directors.

A) maximizing current profit
B) managing for long-run profits
C) target return
D) break-even strategy
E) minimizing risk

Target Return

A pricing strategy that sets the price point based on a predetermined return on investment or desired profit margin.

Profit Goal

A specific, quantifiable financial objective set by a business, aiming to achieve a particular level of profit within a defined period.

Pricing Objectives

Goals that a company wants to achieve through the pricing of its products, such as maximizing profit, increasing market share, or deterring competition.