One Key Difference Between a Company's Sales Forecast and This

question 91

Multiple Choice

One key difference between a company's sales forecast and this firm's sales potential is that:

• A)The sales forecast is usually a larger figure.
• B)The sales potential must be determined first.
• C)The sales potential assumes that a certain strategic plan exists.
• D)The sales forecast is an estimate of sales the firm expects to make under a proposed marketing plan.
• E)The sales potential covers the company's entire market,while the forecast is made for individual market segments.

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Definitions:

Operating Assets

Assets used in the day-to-day operations of a business to generate revenue, excluding investments and non-operational assets.

Net Operating Income

The profit a company generates from its core business operations, excluding taxes and interest.

Return on Investment

A measure of the profitability and efficiency of an investment, calculated by dividing the net profit from the investment by the initial cost of the investment.

Operating Assets

Assets used in the daily operations of a business to generate income, including equipment, machinery, and buildings.