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Before starting a business, an entrepreneur listed possible failures and prepared responses for them. What type of planning is this?

Answer and explanation

Correct answer: Contingency planning

Contingency planning prepares alternative actions for events that could disrupt the original plan, such as supply failure, lower demand, or equipment problems. It is part of risk management because it reduces delay when an unexpected event occurs. A sales plan, timetable, or brand choice does not specifically prepare responses to failure.

Related tags

Contingency PlanningRisk ManagementIntroduction To EntrepreneurshipEntrepreneurial Skills IArtificial IntelligenceClass 9 Mcq

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