Which of These Are True About Contingency Plans

question 9

Multiple Choice

Which of these are true about contingency plans?

• A) They are developed to achieve a set of goals that are unlikely to be repeated in the future.
• B) They are used to provide guidance for tasks performed repeatedly within the organization.
• C) They define company responses to specific situations, such as emergencies or setbacks.
• D) They are most important in the organizations.
• E) None of these

---

Definitions:

Net Discounted Cash Flow

The value of all future cash flows of a project or investment after being discounted to the present value, reflecting both time and risk.

Cash Flowing

The movement of money in and out of a business, representing its operational liquidity.

Expenses

Costs incurred during the operation of a business that are necessary for generating revenue, such as rent, salaries, utilities, and materials.

Residual Value

The estimated value of a fixed asset at the end of its useful life.