Why is it necessary to keep an alternative plan in business?
Answer and explanation
Correct answer: Work can continue when unexpected problems occur
A contingency or alternative plan prepares the enterprise for disruptions such as supplier failure, equipment breakdown, staff absence, or sudden demand changes. It may identify another supplier, a substitute process, reserve funds, or a temporary delivery method so essential work can continue. It does not replace the main plan or eliminate risk; it reduces interruption and improves resilience.
Frequently asked questions
What is the correct answer to this question?
Work can continue when unexpected problems occur
Why is this the correct answer?
A contingency or alternative plan prepares the enterprise for disruptions such as supplier failure, equipment breakdown, staff absence, or sudden demand changes. It may identify another supplier, a substitute process, reserve funds, or a temporary delivery method so essential work can continue. It does not replace the main plan or eliminate risk; it reduces interruption and improves resilience.
Which subject and chapter does this question cover?
This is a Class 11 Business Studies question. Chapter: Business, Trade and Commerce. Topic: Business Risk.
