Which of the Following Best Describes the Term "Sensitivity Analysis

question 22

Multiple Choice

Which of the following best describes the term "sensitivity analysis"?

• A) It is a testing technique to determine how results would differ if key assumptions are changed.
• B) It is an analysis of the emotional sensitivity of a company's employees.
• C) It is an evaluation of the accuracy of the assumptions.
• D) It evaluates a company's financial condition by doing financial statement analysis.

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Definitions:

Reader

An individual who engages with written or printed material, interpreting and understanding its content.

Crisis Management Plan

Plan that defines operational procedures to deal with a crisis, including communication tasks and responsibilities.

Operational Procedures

Specific methods or steps that are followed to perform a task or operation within an organization or system.

Communication Tasks

Activities involved in conveying information or messages between people or groups.