The First Step in the Succession Planning Process Is To

question 36

Multiple Choice

The first step in the succession planning process is to:

• A) decide whether to "make" or to "buy" talent.
• B) identify key employees and their anticipated retirement dates.
• C) define the positions that are critical to the organization's strategy.
• D) assess the capabilities of current employees.

---

Definitions:

Pension Expense

The total cost incurred by an employer to provide pension benefits to its employees, recognized during the period the employees provide services.

Amortization

The gradual reduction of a debt over a period through regular payments covering interest and principal components.

Deferred Loss

A loss that has been incurred but is not immediately recorded in the financial statements.

Plan Assets

Assets that are held by a retirement or pension plan for the exclusive purpose of paying benefits to participants as they become due.