When a Company Crisis Occurs, Which of the Following Is

question 37

Multiple Choice

When a company crisis occurs, which of the following is the best tactic for top management to take when responding to external questions?

• A) Avoid responding until all the facts are known.
• B) Designate someone from staff to respond to avoid limelight.
• C) Indicate when the answer is unknown, but indicate an answer will be sought.
• D) Lessen public concern by withholding certain facts.

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Definitions:

Liquidated

The process of converting assets into cash or paying off a debt by selling assets, often related to the winding down or closing of a business.

Rational Economic Person

An individual who makes decisions by systematically and purposefully maximizing their utility from available choices, assuming full information and rationality.

Economic Assumption

A hypothesis about the economic environment in which a company operates, which can include factors like inflation rates, currency values, and market demand, used for financial planning and analysis.

Wealth Maximisers

Individuals or entities prioritizing activities and investments that aim to enhance their financial assets and wealth over time.