The president of Virtual Products LLC is concerned about next year's economic outlook.Even though next year's plan has been completed,he has requested his staff to generate another plan that assumes a 10% reduction in sales.This is an example of __________.
A) contingency planning
B) forecasting
C) operation planning
D) budgeting

Question

Quizplus · Accepted Answer

This is an example of contingency planning, where the company is preparing for a possible negative event (10% reduction in sales) and creating a plan to mitigate its impact.

The President of Virtual Products LLC Is Concerned About Next