188k views
3 votes
True/ False The two general approaches to measuring company sales potential are the breakdown and the buildup approach.

User Imjared
by
7.0k points

1 Answer

4 votes

Final answer:

It is true that the breakdown and buildup approaches are the two general methods for measuring a company's sales potential. The breakdown approach estimates a company's share based on total market demand, whereas the buildup approach sums up potential unit sales. Both should be seen as approximations for estimating significant sales figures.

Step-by-step explanation:

The statement that the two general approaches to measuring company sales potential are the breakdown and the buildup approach is true. The breakdown approach estimates total market demand and then derives the company's proportion based on its market share. On the other hand, the buildup approach starts by assessing potential sales for individual units within a market and aggregates these to get the company's total sales potential. Both approaches have their uses and are more approximations rather than definitive figures. They are employed by companies to estimate their sales potential in a given market.

User Alysonsm
by
7.6k points