Explain the Importance of a Backup Plan

question 4

Essay

Explain the importance of a backup plan. What is meant by the Backup 3-2-1 rule? Describe each part of the rule.

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Definitions:

Initial Assignment

The initial distribution or allocation of tasks, responsibilities, or resources at the start of a project or process.

Liability Rule

A legal principle that allows for compensation when someone's action causes harm or loss to another, even without an agreement between the parties.

Injunction

A legal order by a court requiring a person or entity to do or cease doing a specific action.

Coase Theorem

An economic theory that suggests that private parties can solve the problem of externalities among themselves, regardless of the initial distribution of rights, as long as property rights are well-defined and transaction costs are low.