Plans for the Best- or Worst-Case Scenarios or for Critical

question 10

Multiple Choice

Plans for the best- or worst-case scenarios or for critical events that could have a severe impact on the firm are known as:

• A)scenario plans.
• B)strategic plans.
• C)contingency plans.
• D)emergency plans.
• E)visionary plans.

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Definitions:

Trading Securities

Financial instruments such as stocks and bonds that are bought and sold for the purpose of generating profits on short-term fluctuations in their prices.

Held-to-Maturity Securities

Held-to-maturity securities are debt securities that an investor intends and is able to hold until their maturity date, recorded at amortized cost.

Unrealized Holding

Gains or losses on investments that have not yet been sold and so are not yet reflected in the income statement.