Certified Meeting Professional (CMP) Practice Exam

What is a non-financial criterion that may influence the decision to hold an event?

1. Cost analysis

2. Need to inform stakeholders

3. Anticipated profitability

4. Revenue from ticket sales

The correct answer is: Need to inform stakeholders

The choice related to the need to inform stakeholders is a non-financial criterion that can play a significant role in deciding whether to hold an event. This reflects the importance of communication strategy and relationship management in event planning. Stakeholders can include a range of individuals or groups who have an interest in the event, such as employees, investors, customers, or the community. Holding an event primarily to update stakeholders or strengthen relationships can enhance trust, engagement, and support for the organization, regardless of any immediate financial returns. This reflects the broader objectives of many organizations beyond just profitability or financial metrics, emphasizing the value of information sharing and transparency in fostering ongoing relationships. In contrast, the other choices focus on financial metrics or cost implications which are important but do not fit the criteria of being non-financial. Cost analysis and anticipated profitability specifically address monetary considerations, and revenue from ticket sales is inherently a financial aspect of event planning. Thus, they do not capture the broader, strategic motivations that can guide decisions beyond financial impacts.