When You Use the Direct Plan for a Bad-News Message

question 43

Multiple Choice

When you use the direct plan for a bad-news message, you should

• A) save any mention of the justification for the closing paragraph.
• B) include a sincere apology in the first paragraph.
• C) emphasize the reasons before presenting the negative news.
• D) state the information in language as positively as possible.
• E) avoid a friendly closing so you won't seem insincere.

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Definitions:

Option Payoffs

The potential return or outcomes from holding or exercising an options contract.

Call Profits

Profits realized from exercising call options, where the investor has the right to buy an asset at a predetermined price before the option expires.