A Message Presenting Only One Side of an Issue Will

question 133

Multiple Choice

A message presenting only one side of an issue will be more effective than a two-sided communication if

• A)the issue is of great personal significance to the audience and tends to elicit strong emotion.
• B)the communicator has only moderate credibility or attractiveness.
• C)the audience tends to agree with the advocated position and will not hear the opposing side.
• D)the audience is well-informed and is already aware of the opposing arguments.

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Definitions:

Flotation Cost

Flotation cost is the total charges associated with creating and issuing new shares of stock, encompassing underwriting, legal, and registration fees.

Equity Capital

Funds raised by a company in exchange for shares of ownership, representing the value of shareholders' equity.

Retaining Earnings

Profits that a company has decided to keep or reinvest in itself rather than pay out as dividends to its shareholders.

Cost of Debt

The effective rate that a company pays on its total debt, reflecting the expense of borrowing funds.