Many experts in the field advocate this approach for projecting revenue for a new startup?
A) A top-down approach
B) A bottoms-up approach
C) A lateral approach
D) A financial template

Question

Quizplus · Accepted Answer

A bottoms-up approach involves breaking down projected revenue by individual products or services, estimating their sales volume and the price per unit to arrive at an overall revenue projection. This approach is recommended because it is more accurate and detailed than a top-down approach that takes a high-level view of the market and makes broad assumptions about the company's potential revenue. A lateral approach is not a commonly used term in financial projections, and a financial template is a tool that can be used to implement either a top-down or bottoms-up approach but is not a method in itself.

Many Experts in the Field Advocate This Approach for Projecting