Along with Business Planning, It Is Imperative That an Entrepreneur

question 42

Multiple Choice

Along with business planning, it is imperative that an entrepreneur think ahead about what would happen if things do not go well. In order to know how to deal with a worst-case situation or crisis, he or she should create a ____________ or plan B.

• A) operational plan
• B) sustainability plan
• C) feasibility study
• D) disaster relief plan
• E) contingency plan

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Definitions:

Duty to Mitigate Damages

The legal principle requiring a party suffering loss as a result of a breach of contract to take reasonable action to minimize the financial harm.

Breach of Contract

A violation of any of the agreed-upon terms and conditions of a legal contract.

Punitive Damages

Monetary compensation awarded to an injured party that goes beyond what is necessary to compensate for losses and is intended to punish the wrongdoer.

Mutual Assent

An agreement between parties that is reached after each party has a clear understanding of the terms and decides to enter the agreement.