GK
BUSINESS MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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What is Company A’s market share if its sales revenue amount to $100 million in an industry with annual sales of $500 million?
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5%
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20%
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50%
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80$
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Explanation:
Detailed explanation-1: -Market share is the percentage of the total revenue or sales in a market that a company’s business makes up. For example, if there are 50, 000 units sold per year in a given industry, a company whose sales were 5, 000 of those units would have a 10 percent share in that market.
Detailed explanation-2: -For example, if a company sells $50 million in product during one fiscal year and the company’s industry sells a total of $100 million in the same product during that fiscal year, the company’s market share for that product would be 50% ($50 million divided by $100 million = 0.50 or 50%).
Detailed explanation-3: -Market Share = (70.8 million / 408.2 million) * 100. Market Share = 17.3%
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