Don’t lose your progress!

We cover every section of the GMAT with in-depth lessons, 5000+ practice questions and realistic practice tests.

Up to 90+ points GMAT score improvement guarantee

The best guarantee you’ll find

Our Premium and Ultimate plans guarantee up to 90+ points score increase or your money back.

Master each section of the test

Comprehensive GMAT prep

We cover every section of the GMAT with in-depth lessons, 5000+ practice questions and realistic practice tests.

Schedule-free studying

Learn on the go

Study whenever and wherever you want with our iOS and Android mobile apps.

The most effective way to study

Personalized GMAT prep, just for you!

Adaptive learning technology focuses on your academic weaknesses.

Reading Comprehension: Inference Questions

What may be inferred from the author's explanation of the risk involved in employing the market penetration strategy?

Good!

[[snippet]]

If companies already have information about their current markets, we may infer that they have collected information about it.

Incorrect.

[[snippet]]

Although we know that a company has information about its existing market, we do not know how it obtains this information.

Incorrect.

[[snippet]]

Although we know that market penetration carries the least amount of risk and expenses, we cannot make the generalization that it is the best strategy for all businesses. The best strategy for any business depends on the business itself and its particular situation.

Incorrect.

[[snippet]]

The author tells us that market penetration carries the least risk and expense, but does not promote this strategy over any other.

Incorrect.

[[snippet]]

We have no information from the passage that tells us how many business employ each of the 4 strategies outlined by the Ansoff Matrix.

Every company that operates in a certain market gathers information about it.
Most companies perform market research before they enter any given market.
Market penetration is the best strategy for firms interested in maintaining their hold on their existing market.
The author recommends using market penetration over any of the other strategies.
More businesses employ the market penetration strategy than the three other strategies of the Ansoff Matrix.