Which of the Following Statements About Target Markets Is Incorrect

question 5

Multiple Choice

Which of the following statements about target markets is incorrect?

• A) There is a distinct difference between a firm's industry and its target market.
• B) The challenge in identifying an attractive target market is to find a market that's large enough for the proposed business but is yet small enough to avoid attracting larger competitors.
• C) By focusing on a target market, a firm can usually avoid head-to-head competition with industry leaders and can focus on serving a specialized market very well.
• D) A target market is a place within a larger market segment that represents a narrower group of customers with similar needs.
• E) It's generally easier to find good information about a target market than an industry as a whole.

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Definitions:

Capital

Financial assets or resources that individuals or businesses use to fund their operations and invest in growth opportunities.

Pre-money Valuation

The valuation of a company immediately before the latest round of financing or investment, used to determine the price at which new shares are issued.

Outside Investment

Financial capital provided by investors who are not part of the day-to-day operations of a business, usually in exchange for equity.

Company's Value

An assessment of a business's total worth, based on factors such as assets, earnings, and market position.