Final answer:
The statement is true as market potential refers to the theoretical maximum sales of a product or service in a market during a specific period, representing the upper limit of demand for that product.
Step-by-step explanation:
The statement 'Market potential is the amount of a product that an organization could sell during a specified time period' is True. Market potential refers to the total demand for a product or service that is calculated over a specific time frame. It is an estimate of the maximum sales of a product or service by all businesses that offer it in a particular market. This concept is crucial for planning and budgeting, as it indicates the upper bounds of what a company could potentially achieve in sales revenue given an ideal scenario where a number of internal and external factors are favorable.
In the product market, businesses sell goods and services to households, generating revenue by trading money for these goods and services. This transactional process is influenced by market potential, as it represents the opportunity ceiling that a company aims to reach or estimate for better strategic decision-making. Market potential is also a baseline that helps companies in judging their performance relative to the total possible market demand.