Communication Methods That Are High in ''Media Richness'' Are Most

question 95

Multiple Choice

Communication methods that are high in ''media richness'' are most valuable:

• A)where the sender holds a higher position in the organization than the receiver.
• B)during emergencies where the sender and receiver have little common experience.
• C)where the sender and receiver have a lot of time to transmit and receive the message.
• D)in routine situations where the sender and receiver have common past experiences.
• E)where the sender holds a lower position in the organization than the receiver.

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Definitions:

Financial Leverage

The use of borrowed money (debt) to amplify the potential return on investment.

Break-even EBIT

The level of earnings before interest and taxes (EBIT) at which a company neither makes a profit nor incurs a loss.

Target Capital Structure

Refers to the mix of debt, preferred stock, and common equity that a company aims to hold to fund its operations and maximize its value.

WACC

Weighted Average Cost of Capital - a calculation of a firm's cost of capital in which each category of capital is proportionately weighted.