Final answer:
The size of the market potential indeed limits the size of a company's sales potential. Market potential determines the highest sales possibility for products or services, shaping the company's sales ceiling.
Step-by-step explanation:
The question at hand is whether the size of the market potential places limits on the size of the company sales potential. This is a true statement. The market potential represents the maximum possible market available for a particular product or service, which in turn establishes an upper boundary for what a company can potentially achieve in sales. Factors such as the availability of resources, customer base, competition, and technological changes shape market potential. Technologies, whether they expand reach or create greater centralization, impact the structure and size of firms, thus influencing company sales potential. It is crucial, therefore, for businesses to understand that the market potential does not only represent a possibility but also serves as a limit to what they can possibly sell within that market.