Scenario Planning Is a Short-Term Version of Contingency Planning

question 67

True/False

Scenario planning is a short-term version of contingency planning.

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Definitions:

Indirect Method

A technique used in cash flow statement preparation that starts with net income and adjusts for non-cash transactions and changes in working capital to arrive at cash flow from operating activities.

Operating Activities

Business actions that pertain to the primary operations of a company, including production, distribution, and other processes that generate revenue.

Net Income

The total profit or loss of a company after all revenues, expenses, taxes, and costs have been subtracted from total revenue.

Operating Activities

Business activities directly related to the production, sale, and delivery of a company's products or services, generating the majority of its revenue and expenses.