CMA Foundation · Fundamentals of Business Laws and Business Communication · Introduction to Business Communication
The informal network through which employees of an Indian manufacturing firm share unverified news about an impending merger, passing it quickly from person to person across departments, is commonly called:
The network is called the grapevine. It is an informal communication channel that ignores the official hierarchy and spreads information, often unverified, quickly through personal contacts. Formal, vertical and downward channels follow the authority structure of the organisation and are officially sanctioned, which does not match this situation.
- AThe grapevineCorrect
- BA formal channel
- CDownward channel
- DVertical channel
Explanation
The grapevine is the informal, unofficial network that spreads information rapidly without following the organisational hierarchy. Formal, downward and vertical channels all follow the official structure of authority, so they do not describe this rumour-like spread.
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