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Senior High School
ENTREPRENEURSHIP
Quarter 2 – Module 4:
Business Forecasting
www.sweetnsimpledesign.com
Lilibeth S. Degulacion
Compiler / Contextualizer
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Second Quarter MODULE 4, Week 4
Business Forecasting
Content Standard
Performance Standard
Competencies
Learning Outcomes (Syllabus)
: The learner demonstrates understanding of environment
and market in one’s locality/town.
: The learner independently creates a business vicinity map
reflective of potential market in one’s locality/town.
: TLE_ICTAN11/12EM-Ia-2
: Upon the completion of the given unit, the SHS learners can
forecasts the revenues and the cost incurred and income of
the home-based business. Create and summarize the business
plan.
What I Know
Multiple Choice
Directions: Choose the letter of your correct answer. Write clearly in a separate sheet
of paper.
1. What is the positive gain remaining for a business after all costs and expenses
have been deducted from total sales?
A. Mark-up
C. Profit Margin
B. Profit
D. Revenue
2. What is the value of all sales of goods and services recognized by a company in
a period?
A. Mark-up
C. Profit Margin
B. Profit
D. Revenue
3. What is an amount that is added on top of the total product cost price?
A. Mark-up
C. Profit Margin
B. Profit
D. Revenue
4. What helps establish how well a certain product or service performs, or how
much money it makes for the company?
A. Mark-up
C. Profit Margin
B. Profit
D. Revenue
5. What is the process of estimating the future demand of a product in terms of a
unit or monetary value?
A. Business Plan
C. Qualitative forecasting
B. Demand forecasting
D. Quantitative Forecasting
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6. What is an act of predicting the future economic conditions on the basis of past
and present information?
A. Business Forecasting
C. Qualitative forecasting
B. Demand forecasting
D. Quantitative Forecasting
7. What cost in cost accounting estimated in advance of production or
construction?
A. Expected cost
C. Profit
B. Mark-up
D. Profit Margin
8. What describes the business wants to achieve, based on a set of assumptions?
A. Business Plan
C. Profit
B. Demand
D. Revenue
9. What is an analysis and extrapolation of this historical data to provide an
indication of future performance or demand?
A. Historical Trend Analysis
C. Profit Analysis
B. Loss Analysis
D. Time Series Analysis
10. What is defined as the management of money and includes activities such as
investing, borrowing, lending, budgeting, saving, and forecasting?
A. Accounting
C. Human Resource
B. Finance
D. Marketing
What I Need to Know
You were already given enough business knowledge in the previous module
but before you will start a simple home-based business, let us tackle first in this module
how to create your own business model because it is equally important with the previous
lessons. You should learn and be equipped with knowledge on looking into the future of
the business! Your next key move is to understand the future operation and outcome of
the business you are into.
In this key move you are expected to:
• understand the importance of forecasting in business
• analyze and forecast revenue and cost incurred of a start-up home-based
business
• compute for profit of the start-up home-based business
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What’s In
It does not matter which industry you are in, whether your company manufactures
products or offers services, or whether your company is small or large, you must have
to plan effectively. Being effective is not enough though but you need also to be efficient.
Thus, foreseeing and identifying the financial movement and operation of the business
is a must. With this, it is important to create the business model a company or
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enterprise may have. Whether the business is small or big, every entrepreneur should
have a business model. Same with the business plan this will serve as the blueprint of
your business. This is one of the primary reasons behind every success of every
business practitioner. It’s just like putting pieces of the puzzle together through keen
analysis of the business’ future.
What’s New
Generating profit is the main goal of every business’ existence. For income
is the lifeline of all business entity.
Anything you plan is generally based on assumption of something that might happen in
your business in the future. The more accurate these assumptions will be, the better
the plan it is. If an entrepreneur knows what happened in the past and why, or have
insight into what may occur next, he can then predict what is likely to happen in the
future. That is what we call business forecasting.
Forecasting the revenue and expenses incurred is equally important and significant.
Knowing the cash flow should be well attended to and be of focus in overseeing the
business operations. Thus, experimentation through forecasting is a must. Now, let us
learn together the value of forecasting the revenue and expenses incurred of a business
to foresee the business growth and direction in the future.
What is It
Understand things before you start off your business. With business
forecasting, you can potentially alter the future to the company’s advantage.
Understanding the key terms:
1. Strategic Planning is the process of documenting and establishing a direction of
SSSSSSSSSSSss
your small business—by assessing
both where you are and where you’re going. The
top three reasons strategy implementation fails: Poor Communication, Lack of
Leadership, Using wrong measures
2. Decision-making is choosing between two possible course of action and it involves
choosing between possible solutions to a problem.
3. Finance is defined as the management of money and includes activities such as
investing, borrowing, lending, budgeting, saving, and forecasting.
4. Accounting is how your business records, organizes, and understands its financial
information.
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5. Expected cost is the cost in cost accounting estimated in advance of production
or construction.
6. Revenue is the value of all sales of goods and services recognized by a company in
a period.
7. Profit is the positive gain remaining for a business after all costs and expenses have
been deducted from total sales.
8. Cost-effective is something that is a good value, where the benefits and usage are
worth at least what is paid for them.
9. Repayment plan is a way to pay back a loan over an extended period of time,
generally by making fixed monthly payments.
10. Cash flow statement (CFS) measures how well a company manages its cash
position, meaning how well the company generates cash to pay its debt obligations
and fund its operating expenses.
What exactly is business forecasting?
Business Forecasting is the process of using analytics, data, insights, and experience
to make predictions and respond to various business needs. The insight gained by
Business Forecasting enables companies to automate and optimize their business
processes.
Business forecasting is an act of predicting the future economic conditions on the basis
of past and present information. It refers to the technique of taking a prospective view
of things likely to shape the turn of things in foreseeable future. As future is always
uncertain, there is a need of organize system of forecasting in a business.
Goal of business forecasting:
- go beyond knowing what has happened and provide the best
assessment of what will happen in the future to drive better decision
making.
Many people think of a Business Forecast as how many of something we will sell next
week. That is part of it but Business Forecasting can encompass anything that identifies
the likelihood of a future outcome, provides comparative information using analytics, or
drives data-driven business decision.
Importance of Business Forecasting
Business Forecasting can be used for:
1. Strategic planning and decision-making (long-term planning)
2. Finance and accounting (budgets and cost controls)
3. Marketing (consumer behavior, life cycle management, pricing)
4. Operations and supply chain (resource planning, production, logistics, inventory)
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Five(5) Fundamentals of Business Forecasting
1. Forecasting is essential to sustainable success
To run a successful business, you need to match demand and supply. In order to
understand and prepare for future demand, businesses must create forecasts.
Demand forecasting – the process of estimating the future demand of a product in
terms of a unit or monetary value – is a fundamental part of supply chain management.
If you run a seasonal business, understanding the peaks and toughs of previous
demand and incorporating them into your current business forecast allows your
business to better manage its inventory. With an informed forecast, you can assess what
amounts of stock should be maintained, what raw materials are likely to be required,
and also what workforce you’ll need to fulfill orders.
Forecasting helps you to fully understand expected costs, revenue and profits, which in
turn impacts process management across the entire business.
In terms of workforce management, it has a significant impact on staff recruitment and
HR activity. And business forecasting also informs product strategy. Analyzing and
predicting potential future growth in demand, cash flow, sales and profits helps identify
the right time for new product development and launch.
It also helps a business to adapt its overall cash flow strategy in line with predicted
outcomes and growth aspirations. Understanding the most likely outcome for sales,
revenues and profits helps ensure that any borrowing or repayment plans are scheduled
for optimum cost-effectiveness, maximum opportunism and minimum risk.
2. Your business forecast should mirror your business plan
Business forecasting is concerned with understanding what could realistically happen
based upon your historical performance.
Business plans include the growth aspirations of the business and are arranged around
a set of goals. They describe what the business wants to achieve, based on a set of
assumptions. They provide the vision for the business, and shape all decisions moving
forwards.
Having a business plan with clear targets is key to developing a relevant business
forecast. Your business plan should inform your business forecast methods,
assumptions and relevant data points. Your forecast findings should then help to inform
your business plans.
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Therefore, it is crucial that business forecasts are continually reviewed and reassessed
to maintain accuracy and alignment to your goals. Continual analysis of business
performance against forecasts and regular reviewing/refreshing ensures that the
forecast remains current and a useful management tool.
This helps to inform a robust and relevant business forecast, and in turn, a sustainable
business plan. In short, you must keep your forecast methods and assumptions as fluid
as possible, and closely linked to any alterations in your business plan.
3. Business forecasting methods and processes
The basic process of forecasting is essentially the same, whatever the methods
employed:
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•
•
•
•
•
A problem is selected – e.g. ‘what will our sales look like in October next year?’
Relevant data points are chosen – what variables and how to collect them?
Assumptions are made to simplify the process and cut down on time and data
A forecasting model is chosen that is suitable for the above points
The data is analyzed and the forecast is drawn up
The forecast is verified through comparison to actual events and performance
There are two main methods of forecasting: qualitative and quantitative.
1. Quantitative forecasting is concerned with data.
Businesses that have been established use primarily historical data of their own
performance, combined with market and other macroeconomic factors.
For existing businesses, the most common business approach in this method
includes:
1. Time Series Analysis is the analysis and extrapolation of this historical
data to provide an indication of future performance or demand. It is the
most common type of business forecasting and forms a large part of
many business’ approach. Due to its reflective nature, this is only
generally useful for existing products and services.
2. Historical trend analysis looks for stable, upward or downward trends
and patterns in historical data, including industry changes, and
technological, cultural, and political developments.
With these methods, the more historical data there is, the better. This makes
them less useful for businesses and markets that are relatively newly established.
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If your business is new, or has less or lack of historical data to work with then
use either the following:
▪
naive approach to data – that assumes the upcoming period
demand will be the same as current – can be more useful.
Let say for example your cupcake sales in the month of December
2020 to January 2021 holiday season will be also your target sales
for December 2021 to January 2022 holiday season.
▪
moving averages’ approach where the forecaster averages out the
last 3 months then uses that as the forecast for the next month. This
can be particularly useful if there is very little trend data to work with.
Say for example having sales of cupcake as follows:
January
February
March
Total Sales
Average Sales for
3 months(Total
Sales/3)
P10,000.00 15,000.00
5,000.00
30,000.00
P10,000.00
Projected
sales for April
2. Qualitative business forecasting models are generally used for short-term
predictions, or for when data is scarce – for example, when a new product is
first introduced to market.
They consist of the following approaches:
➢ Expert opinions – what do experienced executives think will happen
➢ Delphi method – conducting surveys, interviews, and phone calls to a panel
of experts (outside the business) from multiple areas and try to reach a
consensus.
➢ Talking to your sales force and asking them to predict sales based on
performance and other variables
➢ Market surveys – Asking customers their opinions, preferences, etc. to gauge
demand.
Qualitative business forecasting can come up against limitations due to its
reliance on subjective opinion rather than concrete, measurable data points and
trends. For example, salespeople are likely to overestimate how much they will
sell. Problems can also arise if there is a lack of consensus among the experts
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polled.
The reason for some people reject business forecasting and deemed it unnecessary,
waste of time, money and energy even of the many advantages is the fact that despite
all precautions, an element of error is bound to creep in the forecasts and we cannot
eliminate guesswork in the forecasts. It is also felt that forecasting is influenced by the
pessimistic or optimistic attitude of the forecaster.
It may not be possible to make forecasts with a pin-point accuracy but it still cannot
undermine the importance of business forecasting. The management should first make
use of statistical and econometric models in making forecasts and then apply collective
experience, skills and objective judgement in evaluating the forecasts.
Further, the forecasts should be constantly monitored and revised with the changed
circumstances.
There will always be limitations with forecasting due to the nature of forecasting, the
goal is not to be able to create a 100% accurate prediction of future performance and
events. It’s simply to formulate the best guess or estimate based upon the available
relevant information.
Aiming to paint a realistic and informed picture of how the next week, month, year, and
even decade will play out, however, comes up against inherent limitations.
1) Data quality
Due to the historical nature of the data used in qualitative forecasting methods,
it is always old. If your data is not used regularly, the quality of it can decay.
Errors go undetected, and inconsistencies go unnoticed. It must be used or
checked regularly to ensure the data is robust enough to provide useable
analysis. Solid, fresh data with more assumptions applied is better than old,
rarely used data.
2. Bias
Forecasts, as with any predictions, are often biased to some degree. This is
difficult to eliminate as the set of assumptions (which data points or factors to
use, and how to weight them etc.) will likely always add bias to the results.
3. Methodology
Forecasting is, by it’s nature, never totally accurate, and always evolving. If your
forecast does prove to be correct (or highly accurate), it’s important not to assume
that this was due to your brilliant forecasting methodologies and sound logic. A
correct forecast does not prove your forecast method is correct – it could have
been down to sheer good luck. Always check and reassess your methods.
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Robust, informed forecasting is always an iterative process. The more iterations
and the better it is attached to real costs and coherent assumptions – the better
the forecast will be.
4. Unexpected events
Forecasting generally assumes overall economic stability and no significant
changes in the industry or market. However, there is no guarantee that
conditions in the past will carry over into the future. This makes historical data
and trend analysis limited as a standalone method for future predictions.
External unexpected events (think of the subprime mortgage meltdown) can
instantly undermine assumptions and render a forecast irrelevant. It is
impossible to factor in completely unexpected events. Therefore, there needs to
be flexibility built into any business forecast.
4. Keep it simple where possible
Constructed forecast should be simple to understand and provide information relevant
to the strategy of the business. They should also be easy to adjust. The simpler the
methodology used, the easier it is to understand, analyze, and figure out why, should
anything go wrong. If a method is too complex, it can obscure key assumptions and
reasons for failure.
When it comes to cash flow forecasting, Rodney Schwartz, CEO at ClearlySo advises:
“The simpler the better – one of the best is just a projection of the bank balance”.
Finding a simple, flexible cash flow solution is key to maintaining the agility and
financial robustness essential to sustainable growth. Unexpected events – either positive
or negative – can be managed with more confidence, knowing that your working capital
fund is backed up by an easy to access, cost effective and flexible finance facility.
Scientific business forecasting involves:
(i) Analysis of the past economic conditions and
(ii) Analysis of the present economic conditions; so as to predict the future course
of events accurately.
In this regard, business forecasting refers to the analysis of the past and present
economic conditions with the object of drawing inferences about the future business
conditions. In the words of Allen, “Forecasting is a systematic attempt to probe the
future by inference from known facts. The purpose is to provide management with
information on which it can base planning decisions.
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Steps or elements of Forecasting:
Developing the Basis
Estimating Future
Business Operations
Regulating Forecasts
Reviewing the
Forecasting Process
1. Developing the Basis:
The first step involved in forecasting is developing the basis of systematic investigation
of economic situation, position of industry and products. The future estimates of sales
and general business operations had to be based on the results of such investigation.
The general economic forecast marks as the primary step in the forecasting process.
• Do you have an existing competitor in the neighborhood?
• Is your price competitive and fits your target market?
2. Estimating Future Business Operations:
The second step involves the estimation of conditions and course of future events within
the industry. Base on the information/data collected through investigation, future
business operations are estimated. The quantitative estimates for future scale of
operations are made base on certain assumptions.
• What is the demand of your product? Is it still in demand 2-3 years from?
Can you maintain the product quality and competitiveness considering the
location?
3. Regulating Forecasts:
The forecasts are compared with actual results to determine any deviations. The reasons
for his variations are ascertained so that corrective action is taken in future.
• Is there any deviation between your forecast and the actual result? How big
is the difference?
4. Reviewing the Forecasting Process:
Once the deviations in forecast and actual performance are found the improvements
can be made in the process of forecasting. The refining of the forecasting process will
improve the forecast in the future.
•
Did you identify significant data? Are you still into further data collection?
Sources of data use in Business Forecasting:
Collection of data is a first step in any statistical investigation. It is the basis for any
analysis and interpretations. Before collection of data, many questions shall occupy the
mind of the manager. The manager must be able to answer these questions before task
of collection is started.
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These questions are:
1) Why to collect data?
2) What kind of data to be collected?
3) When It is to be collected?
4) Where from it should be collected?
5) Who will collect it?
6) How it shall be collected?
Planning for data collection refers to thinking or preparing before doing the actual
task of data collection. The purpose or object of data collection, the scope of the data,
the unit of data collection, the technique and sources of data are the important
consideration in planning the data collection.
Data may be collected from primary or secondary sources depending upon the time,
resources, and purpose of the investigation.
(i) Primary Sources:
It is a first-hand data collected personally by the investigator. It is costly and time
consuming. Primary data is collected if secondary data is not available. It is
collected through personal interviews, questionnaires or observations.
(ii) Secondary Sources:
These sources of data refer to already published data or data collected by other
agencies. It is a secondhand data. Here task is more of a collection and
compilation of data. Lot of care and caution is necessary before using the
secondary data. Such data is cheaper, quick to access and easily available.
The sources of secondary data are:
(a) Official reports of the government.
(b) Financial institutions etc.
(c) Annual reports of the company
(d) Journals, Newspapers, Magazines etc.
Forecasting is important so that an entrepreneur can foresee the possibility and can
make adjustment before business starts to operate. Thus, an entrepreneur must
identify a sustainable and realistic profit margin to sustain the business operations.
How to Solve Profit with Cost & Revenue?
To determine if a business is successful, you must look at costs, revenues and profits.
Some may think that revenues and profits are the same thing, but they are not.
Companies can have very high sales numbers, but this does not automatically
translate into profits. As Bean Ninjas explained, costs and revenues must be balanced
effectively by a business in order to be successful.
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What is Revenue?
If a business owner does not understand the difference between revenue and profit,
they may not realize if their company is in trouble. Normal business activities are
intended to generate income.
This income is also called sales revenue, and it can be calculated as follows:
sales revenue = sales price × number of sold units (less deductions for
discounts and returned item)
This equation reveals a company’s gross revenue for a given time period.
Once expenses like overhead costs are subtracted, you are left with the company’s net
sales revenue. When the net sales revenue exceeds the expenses during a given time
period, the resulting number represents the company’s profit.
If, for instance, 8Goodies Bakery sold 100 cupcakes priced at P5.00 each in
October, so his gross sales revenue for that month would be P500.00. He would
then subtract his costs (ingredients, labor, rent, etc.); if the costs were P100.00,
his net sales revenue would be P400.00.
The cost of revenue is another way of categorizing operating costs. This includes all of
the expenses associated with manufacturing and distributing products and services
to end users. They can be direct or indirect, and can include buying materials, labor,
production, marketing and salaries.
Defining a Company’s Profits
Revenue – Costs = Profit
Though this profit equation is simple, making a respectable profit can be difficult;
otherwise, companies would never go out of business.
Understanding the concepts of profit markups and margins are essential for business
owners who want to succeed. A markup is the amount that is added on top of the
total product cost price.
For example, say a pair of shoes costs a company P50.00 to acquire from the
manufacturer. They are put on display with a P60.00 price tag. That extra P10.00 is
the markup.
Profit margins help establish how well a certain product or service performs, or how
much money it makes for the company. The percentage figure gauges how many cents
the business makes for every peso in sales, while accounting for the costs involved. In
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essence, higher profit margins indicate that a company is doing better than when their
profit margins are lower.
Calculating Profit Margins
Profit margins can be calculated using a company’s gross, net or operating profit. Most
reflect net profit margins, which pinpoint the percentage of sales that are actual profit.
As Xero Accounting explains, here is the basic formula to use:
Net income ÷ net sales = net profit
margin
This divides the net income by total sales revenue. The net profit margin can be
factored into operating costs, costs of goods and services sold and taxes. So, if a
company’s yearly net income was P25,000.00 and the net sales were P50,000.00 the
net profit margin would be 0.5% percent.
Additional Example Profit Calculations
Here’s another example. In 2019, Dos Kiddos Food Business brought
in P10,000,000.00 in sales. It cost the company P7,500,000.00 to manufacture the
products, plus P1,500,000.00 in operating costs.
Dos Kiddos Food Business had a net profit margin of 10%. This means that 10 percent
of the company’s total sales revenue was profit.
Total sales – (total operating costs + the cost of goods sold) = net income
P10,000,000.00 - (P7,500,000.00 + P1,500,00.00) = P1,000,000.00
Net income ÷ sales = net profit margin
P1,000,000.00 ÷ P10,000,000.000 = 0.1%
0.1 × 100 = 10%
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What’s More
Let’s start defining your Net Sales Revenue!
Instructions: Write your answers clearly in a separate sheet. Base on your start-up
home business identify the following data listed below using the sales revenue, profit
and net income formula given above. Choose one product only if you offered many.
1. Name of a Product _________________________________________________
2. Itemize and total cost of ingredients/materials ______________________
3. Product Sale Price _________________________________________________
4. Gross sales forecast ________________________________________________
5. Compute the sales revenue _________________________________________
What I Have Learned
Instructions: Compute the forecasts of your home-based business 12 months monthly
net income, one-year profit and profit margin. Use the given template as your guide.
Explain briefly if your computation can sustain the business operations.
Fiscal Year 20__ - ___ Sales Summary:
Name of Product:
Month
Cost of
the
product
Selling
Price
Total
unit
sold
Sales
Revenue
January
February
March
April
May
June
July
August
September
October
November
December
Grand
Total
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Monthly Operating
Cost (may include
Fare, lights &
water, labor, other
expense)
Net
Income
Net
Profit
Margin
Less: Other Yearly Expenses (Licensing Fee etc)
Net Income: (Total Monthly Net income - Total monthly revenue-Other
yearly expenses)
Net Profit Margin:
What I Can Do
Now let’s summarize and finalize your business plan!
Instructions: Write your answer clearly in a separate sheet of paper. Do not forget to
write your name, year & section, module# and activity name. You may revisit your
learnings of the activities given in the previous modules. Finalize your Business Plan
using the template given below base on your home-base business. Follow the guide
template below:
Business Plan Template
I. Introduction
Includes Company name, address, history how the
business started, Vision, Mission, objective or
Goals & Business Model
II. Executive Summary
Summary of the whole Business Plan like product offering
and target market
III. Business Proponents
Organizers of the business with their capabilities
IV. Marketing Plan
Includes the 7 P’s of marketing mix, etc.(state 7Ps here)
• Product __________________________
• Price _____________________________
• Place _____________________________
• Process ___________________________
• People ____________________________
• Physical Evidence _________________
• Promotion _________________________
V. Financial Plan
Forecasted sales revenue, expenses and returns
VI. Operational Plan
Type or structure of Business and
Competitiveness strategy (how your business will operate
from purchasing of raw materials until delivery of goods to
the customer)
VII. Organizational Plan
Human Resources which includes management and
employees with job descriptions
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Assessment
Multiple Choice: Write your answer clearly in a separate sheet of paper. Choose the
letter of your correct answer. Do not forget to write your name, year & section, activity
name and module number.
1. What is the cost in cost accounting estimated in advance of production or
construction?
A. Expected cost
C. Profit
B. Mark-up
D. Profit Margin
2. What describes what the business wants to achieve, based on a set of
assumptions?
A. Business Plan
C. Profit
B. Demand
D. Revenue
3. What is an analysis and extrapolation of this historical data to provide an
indication of future performance or demand?
A. Historical Trend Analysis
C. Profit Analysis
B. Loss Analysis
D. Time Series Analysis
4. What is defined as the management of money and includes activities such as
investing, borrowing, lending, budgeting, saving, and forecasting?
A. Accounting
C. Human Resource
B. Finance
D. Marketing
5. What is the positive gain remaining for a business after all costs and expenses
have been deducted from total sales?
A. Mark-up
C. Profit
B. Profit Margin
D. Revenue
6. What is the value of all sales of goods and services recognized by a company in a
period?
A. Mark-up
C. Profit
B. Profit Margin
D. Revenue
7. What is an amount that is added on top of the total product cost price?
A. Mark-up
C. Profit
B. Profit Margin
D. Revenue
8. What helps establish how well a certain product or service performs, or how
much money it makes for the company?
A. Mark-up
C. Profit
B. Profit Margin
D. Revenue
9. What is the process of estimating the future demand of a product in terms of a
unit or monetary value – is a fundamental part of supply chain management?
A. Business Plan
C. Qualitative forecasting
B. Demand forecasting
D. Quantitative Forecasting
10. What is an act of predicting the future economic conditions on the basis of past
and present information?
A. Business Forecasting
C. Qualitative forecasting
B. Demand forecasting
D. Quantitative Forecasting
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11. What are generally used for short-term predictions, or for when data is scarce?
A. Business Forecasting
C. Qualitative forecasting
B. Demand Forecasting
D. Quantitative forecasting
12. What is the process of using analytics, data, insights, and experience to make
predictions and respond to various business needs?
A. Business Forecasting
C. Qualitative forecasting
B. Demand forecasting
D. Quantitative Forecasting
13. What is the process of documenting and establishing a direction of your small
business—by assessing both where you are and where you’re going?
A. Business Forecasting
C. Quantitative Forecasting
B. Decision-making
D. Strategic Planning
14. What is meant of choosing between two possible course of action and it
involves choosing between possible solutions to a problem?
A. Business Forecasting
C. Quantitative Forecasting
B. Decision-making
D. Strategic Planning
15. What is something that is a good value, where the benefits and usage are worth
at least what is paid for them?
A. Cost-effective
C. Mark-up
B. Expected Cost
D. Revenue
References:
https://sba.thehartford.com/business-management/what-is-strategic-planning/
https://www.skillsyouneed.com/ips/decision-making.html
https://corporatefinanceinstitute.com/resources/knowledge/accounting/revenue/
https://www.yourdictionary.com/cost-effective
https://www.experian.com/blogs/ask-experian/what-is-a-repayment-plan/
https://sba.thehartford.com/business-management/what-is-strategic-planning/
https://www.investopedia.com/investing/what-is-a-cash-flow-statement/
https://www.ngdata.com/what-is-business-analytics/
https://ibf.org/knowledge/posts/what-is-business-forecasting-and-why-is-itvaluable-2-43
https://www.pay4.com/5-fundamentals-of-business-forecasting/
https://www.businessmanagementideas.com/business-forecasting/businessforecasting-meaning-steps-and-sources/3934
https://www.bplans.com/downloads/business-plan-template/
https://www.forbes.com/sites/alejandrocremades/2018/12/10/business-plantemplate-a-step-by-step-guide-for-entrepreneurs/?sh=744e4f9a120e#364c5f85120e
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