Yoshi,a Ballroom Dance Instructor,was Recently Asked to Be a Director

question 21

Multiple Choice

Yoshi,a ballroom dance instructor,was recently asked to be a director of ABC Company,which is publicly traded.Although Yoshi is honored and excited,a friend,Joey,asks whether Yoshi had any experience in accounting,business,or SEC requirements.Yoshi explained that the president of ABC had given assurances that the only responsibility of a director was acting as a figurehead because the officers took care of all detailed corporate business.Yoshi believes accepting the position will provide greater exposure in the community and perhaps increase dance clientele.Is Yoshi correct regarding the responsibilities of a director,and why or why not?

• A) Yoshi is correct that the primary job of a director is to serve as a figurehead.
• B) Yoshi is correct that the primary job of an outside director is to serve as a figurehead,but that is not true of inside directors.
• C) Yoshi is not entirely correct,but has no affirmative responsibility to ensure the accuracy of any reports because that is entirely the responsibility of officers of the corporation.
• D) Yoshi is incorrect,and the SEC emphasizes the responsibility of directors to ensure the accuracy and completeness of public company filings with the SEC.

Know how to construct a buffer in a negative message for smoother communication.

Understand how to provide detailed reasons for bad news in a manner that is clear yet considerate.

Recognize the importance of maintaining a positive relationship with the recipient despite delivering bad news.

Know the guidelines for making a clear statement of bad news when organizing a negative message using the indirect method.

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Definitions:

Demand Curve

A graph showing the relationship between the price of a good or service and the quantity demanded, typically downward sloping, reflecting an inverse relationship.

Demand Curve

A graphical representation that shows the relationship between the price of a good and the quantity of that good consumers are willing to purchase at various prices.

Profit-Maximizing Output

The level of production at which a firm achieves the highest possible profit.

Antimacassars

Small pieces of cloth or paper placed over the backs or arms of chairs or sofas to protect them from grease or dirt.