When Selecting Areas for Test Markets, Efforts Should Be Made

question 92

True/False

When selecting areas for test markets, efforts should be made to test market in the minimum number of areas necessary to satisfy representation and validity requirements.

---

Definitions:

Debt Financing

Raising capital through the sale of bonds, loans, or other notes to individuals or institutions.

Return on Assets

A financial ratio indicating how profitable a company is relative to its total assets.

Weighted Average Cost of Capital

An average representing the expected return on all of a company's securities, weighted according to the proportion each contributes to the total capital structure.

Systematic Risk

The risk inherent to the entire market or market segment, also known as market risk.