InThinking Revision Sites

INTHINKING REVISION SITES

Own your learning

Why not also try our independent learning self-study & revision websites for students?

We currenly offer the following DP Sites: Biology, Chemistry, English A Lang & Lit, Maths A&A, Maths A&I, Physics, Spanish B

"The site is great for revising the basic understandings of each topic quickly. Especially since you are able to test yourself at the end of each page and easily see where yo need to improve."

"It is life saving... I am passing IB because of this site!"

Basic (limited access) subscriptions are FREE. Check them out at:

www.StudyIB.net

5.7 True or False Quiz

  • /
  • Unit 5 - Operations Mgt/
  • 5.7 Crisis management & contingency planning (HL)/
  • 5.7 True or False Quiz

Unit 5.7 True or False Quiz - Crisis management & contingency planning

To test your understanding of this HL only topic (Crisis management and contingency planning), answer the following true or false questions.

No. StatementTrue or False?
1.A global financial crisis, economic recession, or a natural disaster in the region are likely to be considered as a crisis for most businesses.

True

2.Cost minimization refers to the management action of making the effort to minimize the negative impacts of potential crises.

False - this is contingency planning

3.Crises are not always preventable and are often beyond the control of a business, e.g., severe weather conditions, the outbreak of infectious diseases, or a major economic recession.

True

4.Firms with well-considered contingency plans are better prepared to deal with potential setbacks, such as fire evacuations or technological failures.

True

5.Safety is a key factor that directly affects the effectiveness of crisis management.

False - this is an impact of contingency planning

6.Although some crises are unpredictable, such as a major traffic accident, others can be preventable, such as a fire hazards or product recalls.

True

7.Contingency planning describes the development of predetermined strategies to deal with a crisis should it occur.

True

8.Quantifiable risks are the risks that are so unlikely that they are hard to justify and prohibitively expensive to investigate and measure.

False - the opposite is true

9.Crisis management refers to the response of a business in a disaster situation that potentially threatens its survival.

True

10.Quantifiable risks are those that are measurable, using techniques such as of past financial records, statistical trends, and market forecasts.

True

11.The cost of dealing with a crisis is not a key priority when it comes to crisis management.

True

12.Work-to-rule and strike action are examples of industrial action, which may cause a crisis within an organization.

True

13.Effective crisis management requires transparency, communication, speed, and control.

True

14.Crisis management involves preparing the necessary actions a firm needs to take if a crisis occurs.

False

15.A business has a moral obligation to be honest and to inform its stakeholders of the truth during a crisis.

True

16.Not all risks are quantifiable, so this can limit the value of contingency planning to some extent.

True

17.Transparency is a fundamental factor affecting the effectiveness of crisis management.

True

18.A product recall, the outbreak of infectious diseases, and fire damage to the premises are all examples of quantifiable risks for a business.

True

19.Contingency planning is about scenario planning, i.e., looking at ‘what if’ situations and devising action plans to minimize the impact of a crisis should this actually occur.

True

20.Transparency involves the moral obligation of a business to be honest and transparent by informing its stakeholders of the truth during a crisis.

True

Return to the Unit 5.7 - Crisis management and contingency planning (HL only) homepage

Return to the Unit 5 - Operations Management homepage