How Can Managers Use the Grapevine as an Asset

question 47

Multiple Choice

How can managers use the grapevine as an asset?

• A) By learning who the key people in the grapevine are, managers can use the grapevine to sound out employee reactions to?new ideas
• B) By learning who the key people in the grapevine are, managers can use the grapevine to start a gossip chain, communicating inaccurate information
• C) By learning who the key people in the grapevine are, managers can use the grapevine to start a cluster chain
• D) By using the grapevine, managers can maintain a hierarchical system
• E) By using the grapevine, managers can promote vertical communication

---

Definitions:

Imperfectly Competitive Markets

Markets in which individual sellers have some control over the price due to product differentiation, barriers to entry, or other factors, unlike in perfect competition.

Competition

Economic rivalry among businesses fighting for the same customers or markets, characterized by the struggle to attract customers, lower costs, and improve products and services.

Market Power

Refers to the ability of a company or firm to raise and maintain prices above the level that would prevail under competition.

Raise Price

The action of increasing the cost at which goods or services are sold, often to reflect increased costs or to improve profit margins.