Question

1. The JOBS Act of 2012 enabled what type of offerings? A. OPOs consisting of equity crowdfunding offerings conducted over the Internet B. IPOs conducted on regional exchanges C. Rewards-based crowdfunding offerings conducted over the Internet D. Equity crowdfunding offerings conducted on the NYSE

2. A firm has the following sale figures: l Year 2011: $4.6 million; l Year 2012: $5.1 million l Year 2013: $4.2 million l Year 2014: $3.8 million l Year 2015: $4.3 million Using the average approach, determine the forecast for the next year's sales. A. $5.1 million B. $5.4 million C. $3.2 million D. $4.4 million

3. A firm has the following sales figures: l Year 2011: $2.1 million l Year 2012: $2.3 million l Year 2013: $2.5 million l Year 2014 $2.2 million l Year 2015: $3.1 million Using the naïve approach, determine the forecast for next year's sales. A. $3.2 million B. $2.5 million C. $3.4 million D. $3.1 million

Answer 1

Q - 1

The correct answer is option A. OPOs consisting of equity crowdfunding offerings conducted over the Internet

The JOBS Act of 2012 cleared path of small starts ups and their promoters to seek crowd funcing over internet and social media. It's popularly knows as online public offering ("OPO"s)

Q - 2

Under average approach, demand forecast for next year = (4.6 + 5.1 + 4.2 + 3.8 + 4.3) / 5 = $ 4.4 mn

Hence, the correct answer is option D. $4.4 million

Q - 3

Under naive method, the next year's forecast is same as recent most year's actual sales.

Hence, forecast sale for next year = actual sale of last year i. e Year 2015 = $ 3.1 mn

Hence, the correct answer is option D. $ 3.1 million