Question

Owing to recent failed campaigns, an established advertising agency is at the risk of reaching bankruptcy. The agency's top-management does not want to release this news as it hopes to recover losses soon. It therefore plans to orchestrate news events to present a false appearance of widespread support for the company's position. This is an example of a legal concern directly related to _____.

Answer 1

The correct answer is letter "C": public relations.

Step-by-step explanation:

Public relations refers to the image the company portraits in front of the market, suppliers, vendors, and competitors. Highly profitable companies place special attention on their public relations since carrying a negative market severely affects their business operations.

Companies facing financial hardship tend to manipulate the information of their Financial Statements in an attempt to keep good public relations and not to worsen the current situation.