What Is the First Step a Company Should Take When

question 3

Multiple Choice

What is the first step a company should take when responding to a crisis?

• A)Call or e-mail members of the press to deny the story
• B)Issue a "no comment"
• C)Respond quickly with a prepared statement
• D)Arrange a press conference with the company's PR representative

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Definitions:

Social Security

A government program that provides financial assistance to retirees, disabled individuals, and their dependents.

Cyclically Balanced

A fiscal policy strategy where government budgets are planned to balance over the business cycle, running surpluses in boom years and deficits during recessions.

Federal Deficits

The financial shortfall that occurs when a government's expenditures exceed its revenues in a given fiscal year.

Great Depression

A severe worldwide economic downturn that took place during the 1930s, marked by devastating economic contraction, high unemployment, and deflation.