Janice was thrilled with the first two years of operations. Her new company-specializing in manufacturing and distributing yoga mats, props, and yoga wear-had been growing steadily and was on track to make a 14 percent profit at the end of this, her second year. Then she started to notice sales slipping in the 11th month of the year. This is a month that normally starts to see sales increases. She had just hired a key employee to work on business development, and she wondered if this downturn would trend into the 12th month and then into her third year of business. Thankfully Janice had some good advice when she launched her venture because she knew exactly how to handle the situation. Along with her business plan, she had created a(n) _____________.

Question

Quizplus · Accepted Answer

A contingency plan is a backup plan or alternative course of action that a business can use if unexpected events or situations arise. In this case, Janice's sales slipping in the 11th month is an unexpected event, and having a contingency plan in place can help her navigate the situation effectively. The other options (layoff plan, golden parachute, escape plan) are not relevant to the situation at hand, and a strategic plan is a broader plan for achieving long-term goals rather than a specific backup plan. Therefore, the best choice is B: contingency plan.

Janice Was Thrilled with the First Two Years of Operations