A Major Advantage of the Test-Market Method of Sales Forecasting

question 6

Multiple Choice

A major advantage of the test-market method of sales forecasting is that it:

• A)Usually can be done quickly.
• B)Usually can be done inexpensively.
• C)Measures the market share under actual selling conditions.
• D)Is a mathematically exact method of estimating potential.
• E)Accurately measures future buying intentions of consumers.

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Definitions:

Intrinsic Value

The perceived or calculated true value of an asset, based on fundamentals, without regard to market value.

Actual Stock Price

The current trading price of a company's shares on the stock market.

Required Return

This is the percentage yield that an investor expects to earn from an investment to make it worthwhile.

Common Share

A type of equity share that represents ownership in a company, granting the holder voting rights and a share in the company's profits through dividends.