Instructor Resource
Page, Introduction to Strategic Public Relations, 1e
SAGE Publishing, 2019
37. What is one of the principal differences between corporate communications and
working in other settings?
a. telling the company’s story to the financial community
b. developing global communications in addition to local outreach
c. incorporating organizational branding in addition to product branding
d. using the two-way symmetrical model for communications
38. ______ are in-depth documents providing accurate and timely information regarding
a company and its financial health.
a. Corporate responsibility reports
b. Quarterly and annual reports
c. Edelman Trust Barometer results
d. Executive remuneration reports
39. Sherry is on the legal staff at Top Athletic Shoes, Inc. and is preparing information
about the company’s basic financial results, its current position in the market, and some
of its future initiatives. What is Sherry creating?
a. quarterly report
b. social responsibility report
c. thought leadership document
d. shareholder letter
40. What is the name of the agency that protects investors by maintaining fair practices
for all investors, such as requiring that everyone, regardless of their relationship to the
company, gets the same financial information at the same time?
a. Securities and Exchange Commission
b. Edelman Communications
c. Federal Trade Commission
d. Federal Communication Commission
41. Fred owns a private company and he needs a steady funding source to finance its
growth and expansion. He has decided to issue shares and sell them to the public with
a(n) ______.
a. quarterly report
b. disclosure of information
c. initial public offering
d. shareholder letter
42. Which of the following is an advantage for a company going public?
a. increased awareness of the company and its products
b. decrease in financial report requirements
c. fewer legal restrictions for financial decisions
d. fund company expansion without giving up control
43. In most companies, the practitioners responsible for the two-way communication
with the financial community are known as ______.
Instructor Resource
Page, Introduction to Strategic Public Relations, 1e
SAGE Publishing, 2019
a. investment advisors
b. investor relations professionals
c. Chief Marketing Officers
d. Chief Communications Officers
44. According to Rivel Research Group, investor relations professionals are charged
with marketing a company’s ______.
a. common stock
b. products
c. services
d. social benefits
45. How does the concept of disclosure apply to media relations?
a. A business can sequence the release of news.
b. Online media outlets have faster access to information.
c. Everyone must get the same information simultaneously.
d. A business can choose which media outlet to give information.
46. Research shows that the difference in value of effective and ineffective investor
relations and financial communications is ______ in a typical company stock price.
a. 10%
b. 30%
c. 50%
d. 75%
47. Best Shoes, Inc. stocks are trading at $10 per share. Currently, the company has a
very ineffective investor relations and financial communications strategy. What would be
the expected trading price if Best Shoes, Inc. develops and implements an effective
investor relations and financial communications strategy?
a. $3
b. $7
c. $13
d. $15
48. What is the name of the class of investors who recognize companies that are good
corporate citizens?
a. Points of Light
b. Socially Responsible Investors
c. investor relations professionals
d. Arthur Page Society
49. What would be the best idea for Shelly to consider if she needs more financial
resources to implement her business strategy and grow her private company?
a. Find a business partner with similar strengths and goals.
b. Work extra hours to increase sales growth.
c. Change her business strategy to reduce her need for resources.
d. Become a publicly traded company.
Instructor Resource
Page, Introduction to Strategic Public Relations, 1e
SAGE Publishing, 2019
50. Ginny is an investor and she is interested in learning more about the financial
standing of Great Shoes, Inc. Who would she likely meet with to learn more about the
company’s business conditions and corporate strategy?
a. investor relations professional
b. public relations professional
c. Chief Executive Officer
d. Chief Marketing Officer
True/False
1. The Edelman Trust Barometer show an increase in the expectation that the business
community will drive change and improvement in the quality of life for citizens.
2. Large companies have very different communications goals than small companies.
3. Marketing and communications have two fundamentally different purposes.
4. Managing media relations and defending your company’s reputation is easier with
social media, because communications professionals have more control over the public
message.
5. The recent developments in digital media have changed the fundamental relationship
between the PR practitioner and the journalist.
6. Same-sex couples and households tend to be more racially diverse than traditional,
opposite-sex couples.
7. Employees represent a major asset in a company’s social responsibility programs.
8. Research shows that a business profile as a socially responsible company pays
dividends in customer retention but not in product sales.
9. Quarterly and annual report details should be released in stages to soften the blow of
a corporate crisis or issue.
Instructor Resource
Page, Introduction to Strategic Public Relations, 1e
SAGE Publishing, 2019
10. Socially Responsible Investors require any companies they support to have long–
term competitive financial returns in addition to a positive societal impact.
Answer Location: Financial Communications
Short Answer
1. What title is given to a communicator whose communications function is a separate
discipline in the company and reports directly to the Chief Executive Officer or president
of the company?
2. Grunig’s two–way symmetrical model of public relations which creates mutually
beneficial relationships between an organization and its key publics is named ______.
3. Which organization recognizes companies who excel at Employee Volunteer
Programs?
Instructor Resource
Page, Introduction to Strategic Public Relations, 1e
SAGE Publishing, 2019
4. Who are the people in a company who are responsible for the ongoing interactions
with the financial community?
5. ______ is when a company sells stock for the first time to the public.
Essay
1. List five actions that a strong and effective corporate communications team must be
able to carry out in today’s global economy.
2. Discuss the opportunities and challenges that social media brings to corporate media
relations.
3. Discuss the importance of internal or employee communications as part of corporate
communications. How do energized and informed employees enhance the success of a
company?
4. Describe a community relations initiative taken on by a corporation that was
controversial. What was the impact to the company and how did the corporate
communications manage any damage? If you were managing the PR communications,
how would you have handled the outcome?
5. Discuss the roles and responsibilities of Investor Relations professionals and how
they add value to a corporation.
Instructor Resource
Page, Introduction to Strategic Public Relations, 1e
SAGE Publishing, 2019