Question

In: Finance

Please list and provide a DESCRIPTION and EXAMPLE of the different types of firms when forecasting...

Please list and provide a DESCRIPTION and EXAMPLE of the different types of firms when forecasting revenues.

Solutions

Expert Solution

Forecasting revenue is one of the important things in business. A company need cash in order to grow and forecasting such things is essential as firms can maintain its operations.

Large corporations - The big organisations forecats its cash flows. It revenue depends upon several factors as its operations crosses the boundaries of the country.

Small firms - These forecasts based on local factors including multi stage level. Their operations extends upto the several states with the country. Revenue should be calculated based on several states operations.

Proprietorship - This is small ventures covering only a city. The revenue affected by local factors around the vendors. It is easy to forecast the revenue for it as the operations are not too large.


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