Which of the Following Statements About the Grapevine Is TRUE

question 146

Multiple Choice

Which of the following statements about the grapevine is TRUE?

• A) Use of the grapevine is on the decrease because of the advent of more sophisticated communication devices.
• B) The grapevine format called the cluster chain primarily carries personal information.
• C) Grapevine information is fairly accurate.
• D) Grapevines are most active in small companies.
• E) Since they cannot control the grapevine,managers should make every effort to eliminate it.

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Definitions:

Transaction

An agreement or exchange between parties that involves the transfer of goods, services, or funds.

Account Balance

The total amount of money in a financial account, calculated by adding all deposits and subtracting all withdrawals.

Trial Balance

A bookkeeping report that lists all the balances of the general ledger accounts of a business at a certain point in time to ensure that debits equal credits.

Cash Account

A financial account that tracks the amount of cash available, used for managing daily cash transactions.