Market Share Measures a Firm's External Performance Relative to That

question 8

Multiple Choice

Market share measures a firm's external performance relative to that of its competitors.Which of the following represents how a firm measures market share?

• A)Multiplying the firm's sales by the industry's total sales
• B)Dividing the firm's sales by the total market sales for the entire industry
• C)Subtracting your competitors sales from your total sales
• D)Subtracting the industry's total sales from the firm's total sales

---

Definitions:

Fixed Cost

Costs that do not vary with the level of production or sales, such as rent, salaries, and insurance.

Accounts Receivable

Money owed to a company by its customers for goods or services that have been delivered or used but not yet paid for.

Collection Period

The time frame it takes for a business to convert its credit sales into cash, reflecting how efficient a company is at collecting accounts receivable.

Net Present Value

The difference between the present value of cash inflows and the present value of cash outflows over a period of time. It is used to evaluate the profitability of an investment or project.