Which of the Following Is Correct About Scenario Analyses

question 63

Multiple Choice

Which of the following is correct about scenario analyses?

• A) The objective of the process is to forecast the future.
• B) The scenario building team identifies the driving forces and "critical certainties" in a decision and prioritizes them.
• C) By anticipating the future and recognizing the warning signs of turbulence ahead, managers can develop more effective strategies.
• D) The process extrapolates from past data to build scenarios for guiding decision making.
• E) Managers develop best-case, worst-case, and most likely scenarios to guide decision making.

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Definitions:

Free Flow

A concept often related to logistics or operations management, referring to the movement of goods, services, or information without hindrance or delay.

Borders

The boundaries or limits of a geographical area, or metaphorically, the limits within which an organization or policy may operate.

Switzerland

A landlocked country in Central Europe known for its mountains, watches, neutrality, and high quality of life.

Electronic Commerce

The activities that use electronic communication in the inventory, promotion, distribution, purchase, and exchange of products and services. Also called e-commerce.