GCSE Business Practice Exam 2025 – Complete Study Resource

Question: 1 / 400

What is meant by 'market share'?

The total number of customers served by a business

The percentage of total sales in a market that is held by a particular company

Market share refers specifically to the percentage of total sales in a market that is attributed to a particular company. This metric is important for understanding how a business is performing relative to its competitors within the same market. For instance, if a company holds a sizable market share, it indicates that it has a strong position in that market, suggesting effective marketing strategies, product quality, or customer loyalty.

Understanding market share helps businesses assess their competitive standing, identify growth opportunities, and make strategic decisions, such as whether to expand product lines or enter new markets. It can also impact investor perceptions, as a larger market share often signals a more dominant or stable business, attracting potential investment.

The other options, while related to business concepts, do not accurately capture the definition of market share. For instance, the total number of customers served by a business relates more to customer base than market share, and the responsiveness of the market to advertising does not quantify market position. Similarly, the capacity to influence market prices pertains to market power rather than specifically measuring sales volume in relation to competitors.

Get further explanation with Examzify DeepDiveBeta

The portion of the market that is responsive to advertising

The capacity of a business to influence market prices

Next Question

Report this question

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy