A Company Can Expect to Expand Its Market Share to a Large

question 36

Multiple Choice

A company can expect to expand its market share to a large extent when ________.

• A) it has a high market-penetration index
• B) its share-penetration index is low
• C) its share-penetration index is high
• D) its product-penetration percentage is high
• E) it has a low market potential

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Definitions:

Goodwill

An intangible asset that arises when a company acquires another company for a price higher than the fair value of its net tangible assets.

Merger Transaction

A financial operation in which two or more companies combine to form a new entity or one company absorbs another.

Voting Stock

Shares that give the shareholder the right to vote on corporate matters, typically regarding the election of the board of directors.