Final answer:
The equation to determine a company's market share is the business's sales divided by the industry's total sales, which represents the company's portion of sales in the market.
Step-by-step explanation:
The equation used to determine a company's market share is A. business sales divided by industry sales. This calculation helps a company understand its position relative to the overall market. Market share is essentially the proportion of total market sales that is controlled by the company. It helps businesses to gauge the success of their products relative to the competition and can inform strategic decisions.
For example, if a company sells $100,000 worth of products in a market where the total sales are $1,000,000, the company's market share would be calculated as ($100,000 / $1,000,000) * 100%, which equals 10%. This means that the company controls 10% of the market in which it operates.