Which of the Following Statements About the Grapevine Is True

question 70

Multiple Choice

Which of the following statements about the grapevine is true?

• A) It should be avoided when information needs to be transmitted quickly.
• B) It can permeate an entire organization.
• C) It is a useful way to transmit confidential information.
• D) It is limited to the boundaries of an organization.
• E) It is a formal network of communication.

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Definitions:

Income Reported

Refers to the total revenue recognized by an entity within a specific reporting period, often found in financial statements.

Operations

Refers to the day-to-day activities involved in running a business, including production, sales, and administration functions.

Variable Costing

An accounting method that only includes variable costs in the cost of goods sold and analyzes fixed costs separately.

Contribution Margin

The amount remaining from sales revenue after variable costs have been deducted, indicating how much contributes to covering fixed costs and generating profit.