Application of Barriers to Effective Communication

question 22

Multiple Choice

Application of Barriers to Effective Communication
The message received yesterday was certainly not the message Jon had intended to send. This morning after speaking to the fifth angry employee, he realized he had failed in communicating. He had worked so diligently to properly word the decrease in profits and the resulting lack of a bonus for the coming year. It was due, in large part, to foreign currency risk factors. When all foreign currency had been changed back to dollars, profits were gone and with it, the bonus. The employees had been so upset as soon as he said the words "no bonus" that he was not sure they had heard anything else. Now he had to try and communicate again.
-Jon used the technical terms for the currency exchange problem like exchange rate risk, hedging, forward contracts, and differing exchange rates. He tried to explain the difficult concepts using all the proper finance terminology. He tried to be thorough in his explanation. Words evidently have differing meanings to differing people. This is an example of which communication barrier?

• A)language
• B)nonverbal cues
• C)filtering
• D)emotions

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Definitions:

Asset Turnover

A financial ratio that measures the efficiency of a company's use of its assets to generate sales revenue.

Property Turnover

A measure of how efficiently a company generates revenue from its assets, often by comparing sales to the average value of property, plant, and equipment.

Current Asset Turnover

A financial metric that measures how efficiently a company uses its current assets to generate revenue, revealing asset management effectiveness.

Interest Coverage

A financial ratio that measures a company's ability to meet its interest payments on outstanding debt.