What is market share?

• A. The total revenue generated by a company
• B. The number of products a business sells
• C. The rate at which a company's profits grow
• D. The percentage of total sales in a market captured by a business

Answer: (D)

Market share is the proportion of total market sales that a company captures, usually shown as a percentage. You calculate it by dividing the company’s sales (revenue or units) by the total sales in the market and multiplying by 100. This tells you how dominant a business is relative to its competitors in that market and can be tracked over time to gauge competitive strength. The option that describes this percentage of total sales captured by a business is the correct one. The other statements describe different measures: total revenue is just how much the company earns, not its share of the market; the number of products sold refers to breadth of offering, not market position; and the rate at which profits grow focuses on profitability, not market size or share.