Which of the Following Bad-News Messages Should Be Organized Using

question 22

Multiple Choice

Which of the following bad-news messages should be organized using the direct strategy?

• A)An announcement of changes in business services
• B)A layoff notice for a long-time employee
• C)A denial of benefits on an insurance claim to an angry customer
• D)A notice of an unexpected plant closure to the city council and mayor

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Definitions:

Semistrong-Form

A theory related to the Efficient Market Hypothesis that asserts all public information is already reflected in stock prices, along with historical information.

Weak-Form

In finance, a hypothesis suggesting that past stock prices and volumes are not predictive of future stock prices.

Weak Form

Assumes that all information contained in past price movements is fully reflected in current market prices. Thus, information about recent trends in a stock’s price is of no use in selecting a stock.

Semistrong Form

States that current market prices reflect all publicly available information. Therefore, the only way to gain abnormal returns on a stock is to possess inside information about the company’s stock.