Which ONE of the following is the correct definition of market share? Select ONE answer:
- The total sales of all businesses in a particular market.
- The sales of one particular business as a proportion of the total sales in a market.
- A group of customers that share a common characteristic.
- A part or portion of a business owned by another business or individual.
- The share that is taken by large businesses.
What is the importance of market share to businesses?
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This is multiple choice question is suitable for Business Studies KS4 classes.
The answer is 2 – Market share is the proportion of a market served by a particular brand or business. Gaining market share is classed as a financial (as opposed to non-financial) aim or objective when starting up a business. It cannot be calculated without knowledge of market size, which is summarised in Option A. Option C is a definition of a market segment. Option D is a definition of a ‘share’ in a business.
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