Jerrica, a finance manager at LRV Industries, is asked by her boss to develop a plan in the event that company sales drop by 20 percent or more. This type of planning is known as:
A) contingency planning.
B) financial planning.
C) crisis planning.
D) consumer protection.
E) environmental planning.

Question

Quizplus · Accepted Answer

Contingency planning involves developing a plan in advance to address potential unplanned events or situations that could have a significant impact on the organization. In this scenario, Jerrica is developing a plan in case of a significant drop in sales, which is an example of contingency planning. Financial planning involves managing an organization's financial resources and assets, while crisis planning involves developing a plan to address a sudden and significant event, and consumer protection and environmental planning are focused on protecting consumers and the environment, respectively.

Jerrica, a Finance Manager at LRV Industries, Is Asked by Her