If You Have to Communicate Negative Information, the Other Person

question 72

True/False

If you have to communicate negative information, the other person is more likely to listen if you focus on the problem rather than the person.

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Definitions:

Business-Specific Risk

The risk associated with the particular circumstances of a specific company, which can affect its earnings and thus its stock price.

Diversification

An investment strategy aimed at reducing risk by allocating investments among various financial assets, sectors, or industries.

Management Risk

The potential for losses due to the decisions and actions of an organization's management team.

Systematic Risk

The risk inherent to the entire market or market segment, which cannot be mitigated through diversification and is often influenced by external factors like political, economic, and social changes.