The Purpose of Contingency Planning Is Simple; Contingency Planners Work

question 8

True/False

The purpose of contingency planning is simple; contingency planners work to prepare their business,organization or institution to be better able to mitigate any disruption to normal business activities.

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Definitions:

Variable Cost

Expenses that change in proportion to the level of production or business activity.

Negotiation

A strategic discussion that resolves an issue in a way that both parties find acceptable, often used in business to finalize deals, terms, and prices.

Investment Turnover

A metric assessing how effectively a firm turns asset investments into revenue.

Profit Margin

A financial ratio that shows what percentage of sales has turned into profits, essentially capturing the level of profitability of a company.