An Internal Forecast Is Based on ________

question 62

Multiple Choice

An internal forecast is based on ________.

• A) a buildup, or consensus, of sales forecasts through a firm's own sales channels, adjusted for additional factors such as production capabilities
• B) the relationships between a firm's sales and certain economic indicators
• C) the prediction of a firm's sales over a given period through surveys sent to financial analysts
• D) developing the pro forma income statement to forecast sales and then express the various income statement items as percentage of projected sales

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Definitions:

Corporation

A legal entity recognized by law as a separate entity from its owners, providing limited liability but allowing it to enter into contracts, sue, and be sued.

Sole Proprietor

A business structure where a single individual owns, manages, and bears the responsibilities for all aspects of the business.

Limited Liability

A legal status where a person's financial responsibility is limited to a fixed amount, usually the value of their investment in a company or partnership.

Torts

Civil wrongdoings recognized by law as grounds for a lawsuit, resulting in injury or harm that constitutes the basis for a claim by the injured party.