Bancroft & Morrison Inc., as an organization, believes that it should always be prepared for the future. Thus, while planning the budget each year, the senior management of the company leaves aside a portion of the company's earnings to be used in case the company deviates from its core plans or any unexpected events occur. In this scenario, the senior management of Bancroft & Morrison Inc. is engaged in _____.

Question

Quizplus · Accepted Answer

Contingency planning involves preparing for unexpected events or deviations from core plans, which is what the senior management is doing by setting aside earnings for unforeseen circumstances.