economic uncertainty on the business environment

Question 1

define economic uncertainty

Answer 1

is the extent to which future economic events are unpredictable and therefore uncertain

Question 2

economic forecasting

Answer 2

1. one method to reduce impact of ecopnomic uncertainty
2. forecasting = prediction = assess all factors
3. can try to minimise impact of future economic events e.g conserve cash if they think there will be a recession

Question 3

contingency planning

Answer 3

• is planning business contnuity in the event of an unexpected outcome
• helps prepare for unexpected events