Paper 2 · November 2024 · Business Planning
An enterprise that sets market share as its objective is aiming to
Asell an identical amount each year
Bincrease the dividend paid to its owners
Creduce the total sales made in the industry
Draise its portion of total industry sales
Explanation
Market share compares the firm's sales with the sales of the whole market, so it can rise even when the firm's own sales fall, provided rivals fall faster. Firms chase it because scale brings lower unit costs and bargaining power.
Derived from ZIMSEC Business Enterprise Skills Paper 2, Nov 2024, Q1