In Terminating Employees, Managers Must Inform the Employees Honestly, Yet

question 56

True/False

In terminating employees, managers must inform the employees honestly, yet tactfully, of the exact reasons for the action.

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Definitions:

Par

The face value of a bond or the stock value stated on the certificate, unrelated to its market value.

State Charter

A legal document issued by a state that grants rights, privileges, and operating terms to a corporation.

Authorized Stock

This refers to the maximum number of shares that a corporation is legally permitted to issue, as specified in its articles of incorporation.

Treasury Stock

Shares that were issued and later reacquired by the issuing company, reducing the amount of stock in the market.