DECA Sports and Entertainment Marketing Practice Exam

What does contingency planning refer to?

1. Planning for routine business operations

2. Preparation for an unexpected emergency

3. Establishing long-term goals for a company

4. Creating marketing strategies

The correct answer is: Preparation for an unexpected emergency

Contingency planning refers to the process of preparing for unexpected emergencies or unforeseen events that could disrupt normal business operations. This includes identifying potential risks, developing response strategies, and creating plans that enable an organization to quickly adapt and maintain continuity in the face of crises. By preparing for various scenarios—such as natural disasters, technology failures, or sudden market changes—businesses can minimize negative impacts and ensure they can recover and continue operations. The other options primarily focus on aspects of business planning that are more routine or strategic in nature. While planning for routine operations is essential, it does not encompass the unpredictability that contingency planning addresses. Similarly, establishing long-term goals and creating marketing strategies are proactive initiatives aimed at growth and direction rather than reactive responses to emergencies, which is the core purpose of contingency planning.