Which Is the First Step in the Contingency Planning Process

question 54

Multiple Choice

Which is the first step in the contingency planning process among the options listed here?

• A) Business continuity training
• B) Disaster recovery planning
• C) Business impact analysis
• D) Incident response planning

Apply the concept of break-even analysis for both units and dollars, and its implications for business planning.

Use the degree of operating leverage to assess the impact of sales volume changes on profit.

Analyze the effects of changes in costs (fixed and variable) and sales price on the break-even point and overall financial performance.

Calculate target income levels and understand the process of achieving financial goals through CVP analysis.

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Definitions:

Discount on Bonds

The difference between the bond's face value and its selling price when the bond is sold for less than its face value.

Financing Activities

Financing activities are transactions between a company and its creditors or investors, including issuing equity, borrowing money, and repaying loans, reflected in the cash flows statement.

Cash Flow

The aggregate sum of funds moving in and out of a company, particularly influencing its liquidity.

Common Stock

Equity security that represents ownership in a corporation, entitling the owner to vote at shareholders' meetings and to receive dividends.