Question

The North American Industry Classification System data can be used to__________.A. identify opportunities for new product lines.B. classify firms according to their number of customers.C. classify business establishments all over the world.D. identify potential new customers.

Answer 1

Answer:

The correct answer is letter "D": identify potential new customers.

Explanation:

The North American Industry Classification System (NAICS) is the result of a joint effort made from Mexico, the United States, and Canada to standardize the classification of businesses in each country according to their production processes. There was a need for such a classification after the North American Free Trade Agreement (NAFTA) was signed in 1994.

The data collected by the NAICS are useful to have an estimate of the number, size, and geographic scope of the companies, forecast sales, and to identify market potential and new customers.