6
QuizMultiple Choice

Study Guide and Quiz

Question 6 • GA-Introduction to Business and Technology

Which of the following is a reason that your company might not want to increase its market share?

Answer
A
The market saturation for your product is low.
B
Many of your company's competitors have bad reputations.
C
Your company has a limited capacity for producing your product.
D
The price of your product is very competitive.

Explanation

A company may avoid trying to increase market share if it cannot produce enough to meet the additional demand. Limited production capacity could lead to shortages or missed orders, so choice C, “Your company has a limited capacity for producing your product,” is a valid reason. Low market saturation, competitors’ bad reputations, or a competitive price would generally make gaining market share more attractive.

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