When Management Chooses a Written Format to Communicate a Decision

question 115

Multiple Choice

When management chooses a written format to communicate a decision to employees,an important characteristic of the written message is that

• A) there is no legal record of the communication.
• B) there is a permanent record of the message.
• C) it provides a forum for discussing management decisions.
• D) it is easy to improvise when using written communication.

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Definitions:

Percentage of Net Change

A calculation that measures the difference in a financial figure over a period as a percent of its value at the start of the period.

Comparative Income Statement

A financial statement that compares income, expenses, and net profits over different periods to show performance trends.

Net Income

The total earnings or profit of a person or company after all expenses and taxes have been subtracted from gross income.

Owners' Equity

Refers to the residual interest in the assets of an entity after deducting liabilities, representing the capital belonging to the owners or shareholders.