Question

1. Why might a company implement a discount program to customers?

2. What are three common uses of financial models?

3. Why might a company abandon an annual plan or budget in favor of a rolling 12-month

forecast?

Answer 1

1 WHY COMAPNY SHOULD GIVE DISCOUNT

THERE ARE MAINLY FOLLOWING REASONS SO THAT COMAPNY SHOULD GIVE DISCOUNT TO CUSTOMERS

1 DUE TO THE DISCOUNT THE SALE OF THE COMAPNY WILL INCREASE

2 THE COMPANY IS ABLE TO CAPTURE THE MARKET AND ITS MARKET SHARE WILL INCREASE.

3 THE COMPANY IS ABLE TO BUILD RELATION WIHT MORE AND MORE PEOPLE.

4 THE OVERALL BUSINESS OF THE COMAPNY WILL ALSO IMPROVE.

2 THE COMMON USES OF FINANCIAL MODELS

1 FINANCIAL MODEL ACTS AS AN IMPORTANT TOOLWHICH ENABLES BUSINESS IDEAS AND RISKS.

2 FINANCIAL MODELLING IS AN ACTION OF CREATING ATTRACTIVE REPRESENTATION OF FINANCIAL SITUATION OF COMPANY.

3 FINANCIAL MODELS ARE USED TO SHOW THE ECONOMIC PERFORMANCE OF THE BUSINESS.

3 THE REASON FOR ROLLING 12 MONTH FORCAST.

1 THE BUSINESS HAS TO GO WO=ITH THE FLOW AS THE FLOW HAS SHIFTED TOWARDS THE ROLLING 12 MONTH FORECAST SO BUSINESS HAS TO SHIFT ITSELF.

2 IT IS A NEW VIEW OF THE BUDGET AND MANY GOT SUCCESS BY THIS SO BUSINESS HAS TO SHIFT ITSELF.