A Group of Middle School Students Stop by a Bicycle

question 180

Multiple Choice

A group of middle school students stop by a bicycle store.The store has just received a new shipment of high-end racing bicycles.The bicycles range in price from $1,200 to $3,000.All of the students want one of these new bikes,but none has the means to buy one.Is this group of consumers a potential market for the expensive bikes?

• A) Yes,they are a potential market since they are all about the same age.
• B) No,they do not have the ability to purchase at this time.
• C) No,to qualify as a market,they must need the product.
• D) Yes,they are a market because this product could satisfy their consumer wants and desires.
• E) Yes,they are a market because this group shares relatively similar product needs and purchasing characteristics.

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Definitions:

Comprehensive Income

The total change in equity for a reporting period other than transactions from owners, including all revenues, gains, expenses, and losses.

Total Assets

The sum of all assets owned by a company, as reported on the balance sheet, that are expected to provide future economic benefits.

Integrated Disclosures

Reporting that combines financial, environmental, and social performance information into a single, cohesive document, aiming to provide a more comprehensive view of an organization's performance.

SEC

The Securities and Exchange Commission, a federal agency responsible for enforcing federal securities laws and regulating the securities industry.