Identify the Incorrect Observation Concerning Niche Markets

question 50

Multiple Choice

Identify the incorrect observation concerning niche markets.

• A)Most industries have both mass and niche markets.
• B)In this approach,you try to target customers only in the niche.
• C)They are specific and broad.
• D)It comprises of a segment of the population that is likely to share interests or concerns.

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Definitions:

Operating Leverage

Operating Leverage is a measure of how revenue growth translates into growth in operating income, determined by the proportion of fixed versus variable costs a company has.

Variable Cost

Operational expenses of a business that alter in accordance with the level of activity.

Tax Rate

A tax rate is the percentage at which an individual or corporation is taxed on their income or profits.

Degree of Operating Leverage

A financial metric that measures the sensitivity of a company's operating income to its sales.