Which of the Following Is True of Contingency Planning

question 21

Multiple Choice

Which of the following is true of contingency planning?

• A) The senior manager spearheads this process but with input from the other levels of management.
• B) This kind of planning is done only by the middle managers.
• C) The middle management spearheads this process but with input from the first-line management.
• D) This kind of planning is done only by the first-line managers.

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Definitions:

Common Stock

Shares entitling the holder to dividends that fluctuate in amount and the right to vote on the company's policy and corporate decisions.

Net Income

The total earnings of a company after subtracting all expenses, taxes, and costs from its total revenue.

Equity Method

An accounting technique used by firms to assess the profits earned through their investment in other companies, recording income based on their share of net earnings.