Senior Executives at a Large Tire Company Learned That One

question 155

Multiple Choice

Senior executives at a large tire company learned that one line of tires had a tendency to fall apart in very warm weather.This resulted in several vehicle accidents in the Middle East and South America.However,the executives did not hear about these problems until several weeks after they were known to lower-level managers.Although the senior executives encourage staff to communicate all information,the lower-level staff held back the information for fear that they might lose their jobs.Which communication concept best describes this communication situation?

• A)Media richness
• B)Persuasive communication
• C)Filtering
• D)Flaming
• E)Information overload

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Definitions:

Dilution

The reduction in existing shareholders' ownership percentage of a company as a result of the company issuing new shares.

Shareholder Value

The value delivered to shareholders due to management's ability to grow earnings, dividends, and share price.

Market Value

The existing exchange rate for assets or services in the marketplace.

Underpricing

The practice of listing a company's stock at a lower price than its market value during its IPO, typically to ensure the stock is fully subscribed.