DECA Sports and Entertainment Marketing Practice Exam

What does a forecast typically predict?

1. Market Trends

2. Product Features

3. Expenses and Revenues

4. Consumer Behavior

The correct answer is: Expenses and Revenues

A forecast typically predicts expenses and revenues because it involves estimating future financial outcomes based on historical data, market conditions, and other relevant factors. In businesses, especially in sports and entertainment, accurate forecasting is essential for effective budgeting and financial planning. By anticipating future income and costs, organizations can make informed decisions regarding investments, resource allocation, and overall strategy. While market trends, product features, and consumer behavior are all important elements in business planning and analysis, they are more related to understanding the environment in which a business operates rather than focusing specifically on the financial aspects. Therefore, the primary purpose of a forecast is to project the financial health of an organization in terms of how much revenue it expects to generate and what its expenses will be, allowing the business to prepare for the future effectively.