After Axcess Systems Lost a Major Client, It Decided to Change

question 86

Multiple Choice

After Axcess Systems lost a major client, it decided to change its organizational structure. To communicate the organizational change to its employees, the top management sends out an email containing a detailed account of its new strategic plan to all the employees. In the context of formal communication channels, this scenario illustrates _____.

• A) downward communication
• B) upward communication
• C) horizontal communication
• D) lateral communication

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Definitions:

Sarbanes-Oxley Act

A U.S. federal law enacted to protect investors from the possibility of fraudulent accounting activities by corporations.

Government Oversight

The monitoring and evaluation of activities by government agencies or legislative bodies to ensure compliance with laws, regulations, and policies.

Private Securities Litigation Reform Act

Legislation designed to protect companies from frivolous litigation concerning the securities market by imposing stricter requirements on plaintiffs.

Wrongdoing Notification

involves informing the appropriate authorities or bodies about illegal or unethical activities within an organization or institution.