Question

Shell, an energy company, creates very long range forecasts about energy. The oil and gas businesses require large upfront investments against long-term paybacks. They want to understand the risks to those paybacks. This is called

Answer 1

Answer:

Budgeting

Explanation:

Budgeting is the process of balancing your expenses and income. It involves creating a spending plan that allocates income effectively to different activities of an entity.

Creating a budget help in meeting set objectives of a business by assigning funds to the most relevant activities per time.

In this scenario the oil and gas businesses require large upfront investments against long-term paybacks.

So they need to create very long range forecasts about energy in order to understand the risk from these paybacks.

This is called budgeting