What is the main purpose of sales forecasting for ABC's e-waste expansion?

• A. To guarantee market share.
• B. To perfectly predict demand.
• C. To plan capacity and finance with caution due to developing market.
• D. To ignore market signals.

Answer: (C)

Sales forecasting in a developing market like ABC’s e-waste expansion is about estimating future sales so the business can size its operations and funding accordingly. By anticipating likely demand, the company can decide how much capacity to build or hire, what equipment to invest in, and how much working capital and financing will be needed. This helps manage risk because uncertainty in a new market means planning should be cautious and flexible, using forecasts to set budgets and contingency plans rather than aiming for perfect certainty. The aim is to align resources with expected demand and prepare for different possible futures, not to guarantee a fixed market share or flawless predictions, and not to ignore market signals.