The Market

A market is defined as:

• A place where buyers and sellers interact to exchange goods and services.

• A location where only sellers gather to display products.

• A government office that regulates prices.

• A store that only sells one type of product.

Market size, share, and growth are calculated to:

• Understand the overall market potential and trends

• Increase product prices

• Reduce competition

• Ignore customer needs

Online retailing offers which of the following benefits?

• Wider product selection and convenience

• Limited shopping hours

• Higher prices due to overhead costs

• Restricted access to products

What percentage of businesses fail in the first year?

• 20%

• 50%

• 10%

• 70%

What percentage of businesses fail in the first 5 years?

• About 50%

• About 20%

• About 70%

• About 90%

What percentage of small businesses fail within the first year?

• 50%

• 10%

• 25%

• 70%

What percentage of small businesses fail within the first 5 years?

• 95%

• 50%

• 30%

• 70%

What is the chance of surviving the first 4 years for businesses with fewer than 20 employees?

• 37%

• 25%

• 50%

• 60%

What is the chance of surviving 10 years for businesses with fewer than 20 employees?

• 9%

• 25%

• 50%

• 70%

If these body sizes represented market trends, the trend you are likely to set up a business in is:

• The largest body size, representing the biggest market trend

• The smallest body size, representing a niche market

• The medium body size, representing a stable market

• A declining body size, representing a shrinking market