Suppose That You Were Interested in Building a Luxury Apartment

question 27

Multiple Choice

Suppose that you were interested in building a luxury apartment complex in your hometown. In your analysis of local demographics, you discover that the target market makes up only 5% (core market share) of the households that currently rent (or would be interested in renting) in this town. If market experts believe that a total of 5,000 apartment units will be rented in your entire hometown within the next year, what is the projected number of units the developer could expect to lease in year 1 if he is able to capture 20% of the market potential?

• A) 1000 units
• B) 500 units
• C) 250 units
• D) 50 units

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Definitions:

Innovation

The process of turning ideas into new or improved products, processes, or services, driven by a desire to solve problems or enhance existing solutions.

Social Capital

The networks of relationships among people who live and work in a particular society, enabling that society to function effectively.

SMART Goals

SMART goals are objectives that are Specific, Measurable, Achievable, Relevant, and Time-bound, designed to clarify ideas, focus efforts, and increase the chances of achieving them.

Extrinsic Motivators

External factors or rewards that influence someone’s behavior or actions.