The first step in constructing a corporate scenario is to
A) develop a common-sized financial statement.
B) construct detailed pro forma financial statements.
C) decide upon how much risk management is willing to accept.
D) analyze the societal environment.
E) use industry scenarios to develop a set of assumptions about the task environment.

Question

Quizplus · Accepted Answer

The first step in constructing a corporate scenario is to use industry scenarios to develop a set of assumptions about the task environment. This helps in identifying the key variables that can affect the organization and developing a strategic plan accordingly. The other options listed are important steps in the process but not the first step.

The First Step in Constructing a Corporate Scenario Is to