When a Business Has a Relatively Small Number of Customers

question 124

Multiple Choice

When a business has a relatively small number of customers, a preferred method of forecasting is

• A) regression analysis.
• B) trend analysis.
• C) the Delphi technique.
• D) a market test.
• E) a customer forecasting survey.

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Definitions:

Compensating Balance

A minimum account balance that a company must maintain as part of an agreement with a lender, often to secure a loan or line of credit.

Cash Balance

The amount of money on hand and available in a company's bank accounts at any given time.

EFT

Electronic Funds Transfer, a system that moves money between accounts electronically.

Bank Reconciliation Process

The act of matching the balances in a company's financial records for a cash account to the corresponding information on a bank statement.