Asked by
Sunil Kumar Bhardwaj
on Dec 14, 2024
Verified
Market share refers to
A) the ratio of the profit of the firm to the total profits of all firms in the industry, excluding the firm itself.
B) the ratio of the profit of the firm to the total profits of all firms in the industry, including the firm itself.
C) the ratio of sales revenue of the firm to the total sales revenue of all firms in the industry, excluding the firm itself.
D) the ratio of sales revenue of the firm to the total sales revenue of all firms in the industry, including the firm itself.
E) the ratio of the profits of all firms in an industry to the profits of the firm.
Sales Revenue
The sum of all revenue generated from selling products or services prior to deducting any costs.
Market Share
The percentage of an industry's sales that a particular company controls.
Profit
The financial gain made in a transaction or operation, calculated as the difference between the sales revenue and the cost of goods sold.
- Gain an understanding of market share as a vital metric for assessing company success and the method of its calculation.
Verified Answer
RW
Learning Objectives
- Gain an understanding of market share as a vital metric for assessing company success and the method of its calculation.