Time, effort and money in producing forecasts
Businesses spend their time, effort and money in producing forecasts. Explain
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Businesses can succeed or fail based on how much prepared they are to deal with the circumstances they confront in the future. So they spend large sums in forecasting (estimates). Businesses build up new products, make new production quotas, and choose financing sources on the basis of these forecasts about the future economic conditions and the organisations condition. If economists forecast interest rates could be relatively high then firms will plan to defer expansion plans and limit borrowing.
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