Concerning the Grapevine,all of the Following Statements Are Correct EXCEPT

question 28

Multiple Choice

Concerning the grapevine,all of the following statements are correct EXCEPT:

• A) The grapevine is an informal communication channel.
• B) Information on the grapevine is wrong most of the time.
• C) The grapevine is a frequent source of information for employees.
• D) Grapevines convey information rapidly.

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Definitions:

Proprietorship

A business owned and operated by a single individual, with no legal distinction between the owner and the business entity.

Expenses

Expenses are the costs incurred in the process of generating revenue, including operational costs, salaries, and utility expenses, critical for determining a company's net income.

Revenues

The total income generated by a company from its activities, before any expenses are deducted.

Income Summary

An account in the ledger that is used to transfer the balances of revenue and expense accounts at the end of an accounting period to determine the net income or loss.