Marketers in Many Industries Use Predictive Analytics To

question 128

Multiple Choice

Marketers in many industries use predictive analytics to:

• A)set strategies.
• B)poach employees from competitors.
• C)seek additional revenues.
• D)Create a more efficient e-business.

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Definitions:

Spontaneously Generated Funds

Funds generated if a liability account increases spontaneously (automatically) as sales increase. An increase in a liability account is a source of funds; thus, funds have been generated. Two examples of spontaneous liability accounts are accounts payable and accrued wages. Note that notes payable, although a current liability account, is not a spontaneous source of funds since an increase in notes payable requires a specific action between the firm and a creditor.

AFN Formula

Additional Funds Needed formula, a financial tool used to estimate the additional amount of financing a firm will require in the future.

Forecasting Method

Techniques used to predict future aspects of a business or the economy, from sales to macroeconomic trends.

AFN Formula

Additional Funds Needed formula; a financial model that projects the additional financing required by a firm to support its desired level of growth.