Which of the Following Observations Is True

question 162

Multiple Choice

Which of the following observations is true?

• A) Market share objectives and straight sales growth objectives have similar limitations.
• B) A larger market share, gained at whatever price, leads to sustainable competitive advantage.
• C) Market share objectives are not popular among modern managers.
• D) Sales growth essentially means bigger profits.
• E) A sales-oriented objective does not refer to profit.

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Definitions:

Economic Concentration

The degree to which a small number of firms occupy a large proportion of the market in a particular industry.

Market Shares

The portion of a market controlled by a particular company or product.

Horizontal Merger

A business consolidation that occurs between firms that operate in the same industry.

Airline

A company that provides air transport services for traveling passengers and freight.