Setting Contingency Plans in an Organization Is Considered Very Important

question 30

Multiple Choice

Setting contingency plans in an organization is considered very important today mainly because

• A) managers have historically been poor tactical planners.
• B) the government can charge firms with unfair business practices if they do not have such plans.
• C) conditions change rapidly in today's economic and competitive environments.
• D) most employees and staff don't understand strategic planning, so they tend to rely more on contingency plans.

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Definitions:

Internal Transfers

Internal transfers involve the movement of assets, funds, or resources from one part of an organization to another. This can include financial transactions or the reallocation of personnel and materials within the company.

Reported Profits

The net income as stated in a company’s financial statements, reflecting revenues minus expenses, including taxes and cost of goods sold.

Investment Opportunities

Investment opportunities refer to financial situations or instruments that offer the potential for a return on investment.

Return On Investment

A metric for assessing the effectiveness or profit gained from an investment, determined by dividing the net income by the investment's cost.