Which of the Following Statements Is True About Scenario Planning

question 108

Multiple Choice

Which of the following statements is true about scenario planning?

• A)It is unwittingly selective in the acquisition and use of evidence.
• B)It is the process of planning a solution based on employee preferences.
• C)It is a disciplined method for imagining possible futures.
• D)It is an act of reframing the problem in a unique way and generating different approaches to the issue.
• E)It is the act of calculating the conventionally accepted right answer to a logical problem.

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Definitions:

Accumulated Benefit Obligation

The actuarial present value of all benefits attributed by the pension benefit formula to employee service rendered prior to that date, whether or not the benefits are vested.

Plan Assets

Assets that are held by a retirement plan, which can include stocks, bonds, and cash, intended to fund the future benefit payments to participants.

Defined Benefit Pension Plan

A retirement plan where employer commitments are based on a formula considering factors like salary history and duration of employment, with the company bearing investment risk.

Prior Service Cost Amortization

The process of expensing the costs of retroactive benefits granted in a pension plan over a period of time.