Explain Why Effective Communication Occurs Only When the Source and the Receiver

question 21

Essay

Explain why effective communication occurs only when the source and the receiver have a mutual frame of reference.

---

Definitions:

Restructuring Debt

The process of renegotiating the terms of existing loans to improve financial stability.

Composition

The makeup or structure of something, in finance it might refer to the mix of assets in a portfolio or ingredients of a financial product.

Creditors

Entities or individuals to whom money is owed by a person or company.

Absolute Priority Rule

A principle in bankruptcy proceedings that senior creditors are paid before junior creditors and shareholders.