Which of the Following Statements About Scenario Planning Is True

question 15

Multiple Choice

Which of the following statements about scenario planning is true?

• A) It can include firms' competitive environment as summarized by the Five Forces Model and other anticipatory elements that are difficult to formalize.
• B) Scenarios always include expectedly important situations and problems that exist in some form in the present day.
• C) At the end of the scenario planning exercise, analysts recommend selecting an even number of scenarios that vary from low to high on a single key variable.
• D) It tends to vary one quantifiable variable while holding others constant to see the likely effect.

---

Definitions:

Revenue

The total income generated by a business from its normal business operations, including sales of goods and services.

Planning Budget

A budget formulated at the beginning of the budgeting period that is based on planned operations and outputs.

Revenue

The total amount of income generated by the sale of goods or services related to a company's primary operations.

Planning Budget

A budget created at the beginning of a period, based on estimates of revenues and expenses.