What Is the Most Accurate Statement About Keeping the Indirect

question 29

Multiple Choice

What is the most accurate statement about keeping the indirect strategy ethical?

• A)The indirect organizational strategy is unethical and manipulative because the writer deliberately delays the main idea.
• B)When you use the indirect strategy,your motives are to deceive the reader and to hide the news.
• C)Because the indirect strategy provides a setting in which to announce bad news,it should be used to avoid the truth.
• D)By delaying bad news,you soften the blow somewhat,as well as ensure that your reasoning will be read while the receiver is still receptive.

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Definitions:

Weighted Average Cost of Capital

A calculation of a firm’s cost of capital in which each category of capital is proportionately weighted, including equity, debt, and other forms of financing.

Market Risk Premium

The extra return investors demand for taking the risk of investing in stocks over a risk-free asset.

Common Stock

A form of shares in a corporation that grants the owner voting privileges and entitlement to a portion of the corporation's earnings via dividends.

Yield to Maturity

The total return anticipated on a bond if the bond is held until its maturity date, accounting for interest payments and capital gain or loss.