The Buffer in a Bad News Message Is a

question 65

Multiple Choice

The buffer in a bad news message is a

• A) hint that good news will follow to prompt the receiver to read further.
• B) statement completely unrelated to the bad news so that receivers won't know that bad news is coming.
• C) neutral but meaningful statement that encourages the receiver to continue reading.
• D) polite and empathetic denial of the requested action.

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Definitions:

Fair Values

The estimated market value of an asset or liability, reflecting the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

Collateralized Loan

A loan that is secured by collateral, assets that the lender can seize if the borrower fails to repay the loan.

Prepaid Interest

The amount of interest that is paid in advance of the period to which it relates, often associated with loans or mortgages.

Loan Payable

Loan Payable is the liability account in a company’s balance sheet representing the amount owed to lenders that must be paid back in the future.