A Manager Is Concerned About the Level of Gossip and "Grapevine

question 8

Multiple Choice

A manager is concerned about the level of gossip and "grapevine" communication on the unit.A management consultant explains to the manager that the "grapevine" often occurs when:

• A) little communication comes from management.
• B) management is not trusted to divulge information.
• C) regular communication is too slow or irregular.
• D) workers feel uncertain or worried about changes.

---

Definitions:

Fair Value

The amount one would get from selling an asset or would need to spend to settle a liability in a well-organized sale involving market players on the date of evaluation.

Tax Rate

The fraction of earnings on which the government imposes taxes for individuals or corporations.

Consolidation Worksheet Entry

An accounting entry used in the preparation of consolidated financial statements which adjusts for intercompany transactions and balances.

Treasury Stock

Shares of a company's own stock that it has repurchased from investors but not yet retired.