If a Manager Learns About a Rumor on the Grapevine

question 62

Multiple Choice

If a manager learns about a rumor on the grapevine that has the potential to cause harm, he or she can best neutralize it by

• A)treating all rumors as a serious issue to be dealt with firmly.
• B)denying the rumor categorically, even if it is true.
• C)issuing a "no comment" statement as a way to keep people guessing.
• D)working to control information as much as possible.
• E)disregarding ridiculous rumors and telling the truth consistently.

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Definitions:

Operating Assets

Assets used in the day-to-day operations of a business to generate revenue, including cash, inventory, and property, plant, and equipment.

Required Rate Of Return

The minimum percentage return an investor expects to achieve from an investment.

Operating Income

Revenue from business operations after operating expenses and before interest and taxes.

Transfer Prices

Prices charged for the sale of goods or services between departments or subdivisions of the same company.