The Most Important Reason That a Firm Might Use a Sales

question 58

Multiple Choice

The most important reason that a firm might use a sales force forecasting survey to determine its sales forecast is

• A) salespeople are generally optimistic about the future and will provide excellent forecast targets.
• B) most salespeople tend to have a pessimistic outlook, which is more likely to result in an achievable sales forecast.
• C) this tends to be the fastest way to determine a good sales forecast for the upcoming period.
• D) the averaging and other statistical techniques applied to these forecasts result in extremely accurate numbers.
• E) the sales staff is closer to the actual customers on a regular basis than anyone else in the organization.

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Definitions:

Par Value

The face value of a bond or stock, as stated by its issuer, which is the nominal value and does not necessarily reflect its market value.

Conversion Value

The value of a convertible security if it is converted into a specified number of shares of the issuing company.

Common Stock

Equity ownership in a corporation, with voting rights and the potential for dividends and capital appreciation.

Strike Price

The set price at which the holder of an option can buy (for a call option) or sell (for a put option) the underlying asset.