The Purpose of Determining the Market Potential in the Income

Multiple Choice

The purpose of determining the market potential in the income statement approach to opportunity assessment is to __________.

A) provide an accurate measurement of what it will cost to run the proposed business
B) forecast sales revenue by dividing market potential by estimated retail market share
C) to set price strategy by analyzing what the market will bear
D) forecast sales revenue by multiplying market potential by estimated retail market share
E) None of the answers apply.