Informal Communication Occurs When the Director of the Research and Development

question 111

True/False

Informal communication occurs when the director of the research and development department of a watch manufacturer presents an idea for a digital watch made of diamonds to the marketing director.

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Definitions:

Preferred Stock

A class of ownership in a corporation with a higher claim on assets and earnings than common stock, typically with predetermined dividend payments.

Dividends

Dividends are distributions of a portion of a company's earnings decided by the board of directors to its shareholders.

Authorized Shares

The maximum number of shares that a corporation is legally permitted to issue, as stated in its articles of incorporation.

Corporation

A legal entity separate from its owners, with its own rights and liabilities, capable of conducting business.