Entrepreneurship - Forecasting Review

Which of the following is a potential benefit of sales forecasting?

• Increased efficiency

• New product ideas

• Higher costs

• Decreased revenue

Which type of sales forecasting is based on expert opinion and personal experience?

• Long range

• Qualitative

• Quantitative

• Short Range

Which type of sales forecasting is based on the analysis of hard facts or numerical data?

• Long range

• Qualitative

• Quantitative

• Short range

Which of the following is an advantage of quantitative sales forecasting?

• It is reliable.

• It is cheap.

• It provides a "human touch"

• It's perfect for new businesses

Which of the following is an external factor that may affect a business's sales forecast?

• Price

• Promotion

• Distribution

• Political conditions

A business might create a sales forecast to predict future sales for

• discontinued products

• a specific market segment

• a competitor

• product ideas

Short-range sales forecasts are used to

• aid in day-to-day decision-making

• plan yearly budgets

• determine whether or not to make capital expenditures

• make strategic plans

Intermediate-range sales forecasts are used to

• plan yearly budgets

• aid in scheduling

• aid in staffing

• make strategic plans

Long-range sales forecasts are used to

• aid in inventory planning

• plan yearly budgets

• determine whether or not to make capital expenditures

• make strategic plans

Which of the following is a use for sales forecasting in business planning?

• Coming up with new product ideas

• Comparing sales to industry norms

• Designing advertisements

• Negotiating contracts with suppliers