One Condition That Encourages and Sustains Rumors on the Grapevine

question 33

Multiple Choice

One condition that encourages and sustains rumors on the grapevine is ________.

• A)ambiguity
• B)certainty
• C)status quo
• D)clarity
• E)transparency

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Definitions:

Controlling Influence

The power to govern the financial and operating policies of an entity to benefit from its activities.

Parent

In the context of business, a parent company is one that owns enough voting stock in another corporation to control its board of directors and therefore its operations and policies.

Subsidiary

A company controlled by another company, known as the parent company, through the ownership of more than half of its voting stock.

Voting Stock

Refers to shares that give the holder the right to vote on corporate matters, such as electing the board of directors.