When You Need to Inform Employees That a Benefit or Privilege

question 54

Multiple Choice

When you need to inform employees that a benefit or privilege will be eliminated

• A) use the direct approach.
• B) minimize the impact of the bad news by presenting it in as positive a light as possible.
• C) use as many hedging words as possible.
• D) the best approach is to leak the news as a rumor rather than make a public announcement.

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Definitions:

Equivalent Annual Cost

A financial analysis tool used to compare the cost effectiveness of two or more alternatives with different lifespans expressed on an annual basis.

Rate of Return

The gain or loss of an investment over a specified period, expressed as a percentage of the investment's initial cost.

Equivalent Annual Cost

A financial metric used to compare the cost-efficiency of different investments or projects with different lifespans, by calculating their annual costs.

Present Value

The present day value of an anticipated future amount of money or series of cash receipts, calculated with an established rate of return.