Preston Works in the Communications Division of a Large Toy

Multiple Choice

Preston works in the communications division of a large toy manufacturer. Recently, his company was forced to issue a nationwide recall after it was discovered that lead paint had been used on some of the toys. The news has spread like wildfire, and rumors have begun to replace facts. Preston has been constantly busy answering questions from the media, assuring the public that it was taking appropriate action, fielding calls from government officials, and more. He has come up with a statement acknowledging the incident on the corporate Facebook page and its website. He is also helping the CEO craft a response. Preston has learned the difficult lesson that

A) government regulators always fine firms when they have to issue a massive recall.
B) managers spend more resources responding to negative word of mouth than positive word of mouth.
C) it is impossible for managers to develop an adequate response to a major crisis event.
D) the company's response will not be able to quell the misinformation regarding a crisis event.
E) it is impossible to develop a crisis management plan because nobody knows what crisis is going to hit.