Lost-Horse Forecasting Involves

question 210

Multiple Choice

Lost-horse forecasting involves

• A)admitting that the actions you have taken in the past have failed and removing those and similar actions from you list of alternatives.
• B)starting with the last known value of the item being forecast,listing the factors that could affect the forecast,assessing whether they have a positive or negative impact,and making the final forecast.
• C)making decisions without any intervening steps.
• D)following a prescribed set of "directives" established before the research was even begun.
• E)selecting the forecasting alternative that would allow a firm to survive financially even if the forecasts were totally incorrect.

---

Definitions:

Outstanding Shares

The total number of shares of a corporation that have been issued and are held by shareholders, including restricted shares owned by company insiders.

Book Value

The net value of an asset as recorded on the balance sheet, calculated by deducting the accumulated depreciation or amortization from the original cost of the asset.

Fair Market Value

The price an asset would sell for on the open market when certain conditions are met, such as both the buyer and seller are knowledgeable, willing, and not under duress.

Goodwill

An intangible asset that arises when a company acquires another business for more than the fair value of its identifiable assets and liabilities.