Which of the Following Is True About Market Penetration

question 66

Multiple Choice

Which of the following is true about market penetration?

• A) It involves trying to gain additional share of a firm's existing markets using existing products.
• B) It involves creating new products to serve existing markets.
• C) It involves creating new products and trying to sell them within new markets.
• D) It involves entering entirely new industries.
• E) It involves moving into a new industry that has important similarities with the firm's existing industries.

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Definitions:

Complete Information

A scenario in which all parties have access to all relevant information related to a transaction or decision.

Real Rate of Return

The real rate of return is the annual percentage profit earned on an investment, adjusted for changes in the price level due to inflation or deflation.

Nominal Return

The return on an investment without adjusting for inflation, representing the raw earnings or loss.

Inflation

The rate at which the general level of prices for goods and services is rising, and subsequently, purchasing power is falling.