Which of the following definitions best describes a contingency?
A) It is an event occurred in the past which resulted in heavy profits for the company.
B) It is an event due to which a company identifies its competitive advantage.
C) It is an event that might occur and must be planned for.
D) It is an event occurred in the past which resulted in heavy loss for the company.

Question

Quizplus · Accepted Answer

A contingency is a potential event or circumstance that may occur and requires proactive planning to mitigate potential negative effects. Option C is the only choice that accurately describes this definition. Options A and D refer to actual past events, while Option B describes something that has already been identified rather than a potential occurrence.

Which of the Following Definitions Best Describes a Contingency