Question

Which of the following statements about market share is true?

A.
Only direct competition should be considered when strategizing about market share.
B.
All businesses will need a percentage of the market share to survive.
C.
A business with less than 5 percent of the market share is unlikely to last.
D.
Market share is unlikely to change much once a business is established.

Answer 1

All businesses will need a percentage of the market share to survive.

Step-by-step explanation:

The correct statement about market share is B. All businesses will need a percentage of the market share to survive. Market share refers to the portion of the total market that is controlled by a particular company or product. It is an important indicator of a company's success and competitiveness. A higher market share typically means a larger customer base and greater profitability. Therefore, for a business to survive and thrive, it needs to have a certain percentage of the market share. This allows the business to reach and attract customers, generate revenue, and compete effectively with other companies in the industry.

Answer 2

B. All businesses will need a percentage of the market share to survive.

Step-by-step explanation:

Businesses with small market shares can be successful, but a larger market share means more profit potential, lesser effort to sell more, and a stronger barrier against competitors entering the market. A business that is below the optimal level for market share should plan to develop its market share, while a business at the optimal level should plan to fight to maintain it.