Question

59. What is a contingency? a. An existing situation where certainty exists as to a gain or loss that will be resolved when one or more future events occur or fail to occur. b. An existing situation where uncertainty exists as to possible loss that will be resolved when one or more future events occur. c. An existing situation where uncertainty exists as to possible gain or loss that will not be resolved in the foreseeable future. d. An existing situation where uncertainty exists as to possible gain or loss that will be resolved when one or more future events occur or fail to occur.

Answer 1

Correct option is D.

Explanation: A contingency is an existing situation where uncertainty exists as to possible gain or loss that will be resolved when one or more future events occur or fail to occur.

In business, a contingency plan is a plan or course of action a company would implement if an unexpected event occurs. Basically, what this means is that a company is preparing for any outcome.