"Hey, Boss, I Heard on the Office Grapevine That the Company

question 116

Multiple Choice

"Hey, boss, I heard on the office grapevine that the company is up for sale. What have you heard?" asked Uri. "That's absolutely false," said Archer. "I know for a fact that one of our competitors planted that rumor. I need to neutralize that rumor." Why does Archer believe that he needs to neutralize the rumor?

• A)The grapevine is a formal communications network that should be under management control.
• B)The grapevine cannot teach employees how to do their work successfully.
• C)The grapevine can be destructive when erroneous misinformation proliferates and harms operations.
• D)The grapevine, as an informal communications network, does not provide information or solve problems.
• E)The grapevine, like all informal communications networks, must be suppressed.

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Definitions:

Cash Dividends

Payments made by a corporation to its shareholder members. It is the share of profits and retained earnings that the company pays out to its shareholders.

Interest Payment

A payment made to a lender by a borrower in exchange for the use of borrowed money, typically calculated as a percentage of the principal.

Accumulated Depreciation

The cumulative depreciation of an asset up to a single point in its life, reflecting the asset's loss in value due to wear and tear, age, or obsolescence.

Operating Activities

The cash flows related to the core operations of a business, including revenues and expenses.