Which of the Following Is Correct with Regard to the Grapevine

question 45

Short Answer

Which of the following is correct with regard to the grapevine?
Managers can eliminate the grapevine, but it takes a lot of time and effort to do so.
All things considered, it is best for the manager to ignore the grapevine because the accuracy of the information it carries is inconsistent and unpredictable.
The grapevine is an early warning system, so managers should pay attention to it.
Managers cannot have an influence on the information carried by the grapevine because it is controlled by the informal organization.
All of these are correct.

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Definitions:

Closing Entry

An accounting procedure used to transfer balances from temporary accounts to permanent ones at the end of an accounting period, thereby preparing the temporary accounts for the next period.

Income or Loss

The financial result of an organization's operations over a specific period, calculated as revenue minus expenses, indicating profitability or a deficit.

Financial Statements

Reports detailing the financial performance, position, and cash flows of a business over a specific period.

Current Asset

Resources anticipated to be turned into cash, disposed of, or used up within a period of one year or the duration of the business's operational cycle, depending on which timeframe extends further.