The president of Virtual Products LLC is concerned about the next year's economic outlook. Even though next year's plan has been laid out, he has requested his staff to generate another plan that assumes a 10% reduction in sales. This is an example of __________.

Question

Quizplus · Accepted Answer

Contingency planning is the process of creating alternative plans to address potential future events that may have a significant impact on the organization. The scenario given is an example of contingency planning, as the president is asking for a plan to address a potential reduction in sales. Forecasting involves predicting future trends and events, operation planning involves the detailed planning of day-to-day activities, and budgeting involves the allocation of financial resources.

The President of Virtual Products LLC Is Concerned About the Next