Relying on Executive Judgment for Forecasting May Be Adequate When

question 173

Multiple Choice

Relying on executive judgment for forecasting may be adequate when

• A) levels of marketing efforts put forth by competitors vary considerably.
• B) recent events give the executive specific impressions of product demand.
• C) product demand is erratic.
• D) the executive conducts surveys.
• E) the executive has considerable experience and product demand is relatively stable.

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Definitions:

Total Market Value

The aggregate value of a company or an asset in the marketplace, based on current prices and the total number of shares or units outstanding.

Stock Split

A corporate action where a company divides its existing stock into multiple shares to boost the liquidity of the shares.

Shares Outstanding

The cumulative amount of a company's shares that have been approved, distributed, and acquired by shareholders and currently possessed by them.

Debt-equity Ratio

A ratio used to express the relative use of equity and debt in funding a company’s assets.