Using Sales Force Estimates for Forecasting Has the Advantage That

question 37

Multiple Choice

Using sales force estimates for forecasting has the advantage that

• A) no biases exist in the forecasts.
• B) statistical estimates of seasonal factors are more precise than any other approach.
• C) forecasts of individual sale force members can be easily combined to get regional or national sales totals.
• D) confusion between customer "wants" (wish list) and customer "needs" (necessary purchases) is eliminated.

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Definitions:

Limited Liability

A legal structure for a business where the owners' personal assets are protected from the company's debts and liabilities, limiting their risk to the amounts they have invested in the company.

Mutual Agency

A legal principle in partnership businesses where each partner is authorized to act on behalf of the partnership and bind it in contracts.

Authorized Capital Stock

As stated in its charter, the number of shares of capital stock (common and preferred) that a corporation can sell.

Issued Capital Stock

Stock that the corporation issues for assets or services contributed by the stockholders.