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Entrepreneurship - Forecasting Review

Total questions: 12

Worksheet time: 6mins

Name
Class
Date
1.

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

a)

Increased efficiency

b)

New product ideas

c)

Higher costs

d)

Decreased revenue

2.

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

a)

Long range

b)

Qualitative

c)

Quantitative

d)

Short Range

3.

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

a)

Long range

b)

Qualitative

c)

Quantitative

d)

Short range

4.

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

a)

It is reliable.

b)

It is cheap.

c)

It provides a "human touch"

d)

It's perfect for new businesses

5.

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

a)

Price

b)

Promotion

c)

Distribution

d)

Political conditions

6.

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

a)

discontinued products

b)

a specific market segment

c)

a competitor

d)

product ideas

7.

Short-range sales forecasts are used to

a)

aid in day-to-day decision-making

b)

plan yearly budgets

c)

determine whether or not to make capital expenditures

d)

make strategic plans

8.

Intermediate-range sales forecasts are used to

a)

plan yearly budgets

b)

aid in scheduling

c)

aid in staffing

d)

make strategic plans

9.

Long-range sales forecasts are used to

a)

aid in inventory planning

b)

plan yearly budgets

c)

determine whether or not to make capital expenditures

d)

make strategic plans

10.

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

a)

Coming up with new product ideas

b)

Comparing sales to industry norms

c)

Designing advertisements

d)

Negotiating contracts with suppliers

11.

Which of the following is not a benefit of sales forecasting?

a)

Increasing revenue

b)

Increasing customer retention

c)

Increasing costs

d)

Increasing efficiency

12.

True or False....Long range sales forecasting is used to create budgets and plan capital expenditures.

a)

True

b)

False