Careful business plans will include a(an) that shows how projected results will vary if the assumptions are wrong by some percentage.

Question

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A sensitivity analysis is a tool used to help businesses understand how variations or changes in assumptions can affect the outcome of a project, decision or investment. It provides a range of possible outcomes based on different levels of input. Therefore, a careful business plan should include a sensitivity analysis to help anticipate variability in projected outcomes based on changing assumptions. Market analysis, feasibility analysis, and assets analysis are all important components of a business plan, but they do not specifically address variations in assumptions.

Careful Business Plans Will Include A(an) That Shows How Projected