Building a Model for Long-Term Forecasting Reveals Points in the Future

question 63

Multiple Choice

Building a model for long-term forecasting reveals points in the future where the firm will have

• A)excess cash that can be used for dividends, debt repayment, or share repurchases.
• B)a need for expanding property, plant and equipment to meet increases in capacity.
• C)cash needs that must be funded with external financing.
• D)all of the above.

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Definitions:

Sales Forecast

An estimation of the expected sales for a particular period in the future, based on historical data, market analysis, and other factors.

Supply Chain

The interconnected network of entities, including suppliers, manufacturers, and distributors, involved in producing and delivering a product or service to the end consumer.

Upstream

In the context of supply chain management, it refers to the initial stages involving the sourcing of raw materials and the production processes leading to the final product.

Downstream

The stage in the production process or supply chain that occurs after a particular point, usually closer to the end-user or consumer.