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.

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Definitions:

Sales Increase

A rise in the amount of goods or services sold, often measured as a percentage increase over a previous period.

Contribution Format

A method of income statement presentation that stresses the contribution margin, which is sales revenue minus variable costs.

Income Statement

A financial statement that shows a company’s revenues and expenses over a specific period, resulting in net profit or loss.

Net Operating Income

The total profit a company makes from its operations, excluding taxes and interest.