Question

Select all that apply. Two Wheel Bicycle Company increased its market share from 10 percent to 25 percent during one year. Select statements that could be true as a result of this increase. Two Wheel Bicycle manufactures more bicycles. Employees get a raise. Two Wheel Bicycle increases its advertising budget. The owner opens another Two Wheel Bicycle store.

Answer 1

The correct answer is :

- Two Wheel Bicycle manufactures more bicycles.

- Employees get a raise.

- Two Wheel Bicycle increases its advertising budget.

- The owner opens another Two Wheel Bicycle store.

Answer 2

All the statements could be true as a result of the company's increase in market share.

-Two Wheel Bicycle manufactures more bicycles. This could be true since having greater market share, the more income would be and more money could go to the production of bicycles.

-Employees get a raise. This may happen as a result of the increase in the income of the company, since there would be more money available to allocate for employee salaries.

-Two Wheel Bicycle increases its advertising budget. Always relating to the increase in revenue, the budget for advertising could also be increased due to the increase of money available in the coffers of the company.

-The owner opens another Two Wheel Bicycle store. Logically, the money that comes in as a result of the increase in market share could be used to open a new store.