Setting Contingency Plans in an Organization Is Considered Very Important

question 30

Multiple Choice

Setting contingency plans in an organization is considered very important today mainly because

• A) managers have historically been poor tactical planners.
• B) the government can charge firms with unfair business practices if they do not have such plans.
• C) conditions change rapidly in today's economic and competitive environments.
• D) most employees and staff don't understand strategic planning, so they tend to rely more on contingency plans.

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Definitions:

Recognition

The process of formally recording or incorporating an item into the financial statements of an entity.

Incurred Expense

An expense that has been recognized in the accounting period in which it is incurred, regardless of when the payment is made.

Total Liabilities

The sum of all financial debts or obligations a company owes, shown on the balance sheet.

Expense Account

An account where business-related expenses are recorded, often used for tracking purposes for budgeting or tax deductions.