Status Effects on Communication

question 27

Multiple Choice

Status effects on communication:

• A) reflect the impact of managerial titles.
• B) result from managers listening to employees too much.
• C) are seldom serious.
• D) can result in corporate cover-ups.
• E) are fewer in hierarchical organisations where managers and employees know their places.

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Definitions:

Stock Investments

The purchase of shares in a company with the expectation of generating income or capital gains.

Insignificant Influence

Refers to a situation in which an investor does not have enough stake or power in an investee company to affect its decisions or policies.

Equity Method Investments

An accounting technique used to record investments in which the investor holds significant influence over the investee, usually recognized when owning 20-50% of the voting stock.

Cash Dividends

Earnings distributed to shareholders in the form of cash, reflecting a company's profitability and its decision to return a portion of profits back to investors.