Question

Why is forecasting necessary for a business firm?

Answer 1

look, business environment is very dynamic in nature i.e it's constantly changing like in terms of technology, govt regulations etc or it could also face uncertain problems like economy crash, natural calamities etc so to deal with them in a 'Proactive' manner a business needs to be ready all the backups plan to defend/adapt itself from uncertain changes and for this businesses needs to have a idea about what is going to happen ,when ,where,why or 'what if'. it's basically to deal with uncertain situations/happing in future!