___ Involves Identifying Several Possible Future Situations or States of Affairs

question 225

Multiple Choice

___ involves identifying several possible future situations or states of affairs and then making plans to deal with each situation should it occur.

• A) Scenario planning
• B) External benchmarking
• C) Forecasting
• D) Staff planning
• E) Internal benchmarking

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Definitions:

Accrual Basis

An accounting method that records income when earned and expenses when incurred, regardless of when the cash is received or paid.

Average Annual Gross Receipts

An average of a business's total gross income over a specified period, often used to determine tax reporting requirements or eligibility for small business tax concessions.

Complete Liquidation

The process of closing a business by selling all assets, paying off creditors, and distributing the remaining assets to shareholders.

Capital Gain

The profit from the sale of an asset or investment exceeding its purchase price, which is subject to taxation.