Which of the Following Should You Avoid When Selecting a Strategy

question 59

Multiple Choice

Which of the following should you avoid when selecting a strategy for announcing negative news?

• A) Cementing your effort to cover the matter positively
• B) Choosing a strategy that prepares your reader to accept the bad news
• C) Leaving your reader with the feeling that you have considered his or her interests despite the negative announcement
• D) Selecting a strategy that will set up or begin the explanation that justifies the announcement
• E) Informing your reader about the negative news in a blunt, direct, and honest manner

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Definitions:

Marginal Cost

The cost of producing one additional unit of a product or service.

Optimal Capital Structure

The most favorable mix of debt and equity financing that minimizes a company's overall cost of capital while maximizing its stock price.

Common Share Price

The market value of a single share of a company's common stock.

Debt

An amount of money borrowed by one party from another, under the condition that it is to be paid back at a later date, usually with interest.