To develop _____ plans, managers identify important factors in the environment, such as possible economic downturns, declining markets, increases in cost of supplies, new technological developments, or safety accidents.
A)emergency
B)risk
C)scenario
D)contingency
E)obsolescence

Question

Quizplus · Accepted Answer

Contingency plans are developed in advance to deal with unexpected events or situations that could disrupt operations or cause losses. The factors identified by managers, such as economic downturns or safety accidents, are examples of risks that could be addressed through contingency planning. Emergency plans are typically specific to a particular type of crisis and are designed to be implemented immediately in response to that crisis. Scenario planning involves developing multiple plausible future scenarios and preparing for each one, while obsolescence planning is focused on preparing for changes in technology or consumer preferences that would render current products or services obsolete.

To Develop _____ Plans, Managers Identify Important Factors in the Environment