While Researching on the Idea of Opening His Own Health

question 65

Multiple Choice

While researching on the idea of opening his own health club,Tom learned that there are 11 million health club members in the United States,and 90 percent of them are between the ages of 18 and 49.They prefer to exercise with people of their own sex and majority of them are urban dwellers.During the process of market segmentation,this information is most likely to be used by Tom for:

• A) observational analysis.
• B) marketing research.
• C) forecasting total market potential.
• D) developing a market segment profile.

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Definitions:

AGI

Adjusted Gross Income, calculated as gross income minus certain adjustments, serving as the basis for various tax calculations.

Self-Employment Tax

A financial charge on self-employed persons to fund their Social Security and Medicare benefits.

Net Earnings

The amount of income generated after deducting the costs, expenses, and taxes from total revenue. It represents the actual profit of a business.

Qualified Education Loans

Loans taken out solely to pay for higher education expenses that are qualified for tax deductions or preferential tax treatment under U.S. tax law.