A Contingency or Management Reserve to Pay for Additional Costs

question 49

Multiple Choice

A contingency or management reserve to pay for additional costs associated with implementing response plans should be

• A) absorbed as a cost of doing business.
• B) planned into the project prices and budgets.
• C) requested to be paid by the project sponsor in addition to the costs of doing the project.
• D) added to the budget of the next project with the same sponsor.

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Definitions:

Corporate Matters

Issues or affairs related to the governance, management, and regulatory compliance of corporations.

Model Business Corporation Act (MBCA)

A set of laws proposed by legal experts to guide states in the establishment of their corporate statutes.

Quarterly Meeting

A scheduled meeting that occurs four times a year, typically to review quarterly performance and plan for future strategies.

Shareholders

Individuals or entities that own shares in a corporation and have potential financial gains or losses based on the company's performance.