Melissa Jones just launched a firm in the wireless communications industry. Shortly after the company was launched, Melissa announced that a prominent Silicon Valley venture capitalist had agreed to serve on her board of directors. Melissa knows that such a high quality appointment will send an important message to her potential business partners and clientele. This phenomenon is referred to as ________.

Question

Quizplus · Accepted Answer

The phenomenon described in the scenario is known as signaling. Melissa's announcement of the prominent venture capitalist joining her board sends a positive signal to potential business partners and clientele about the quality and credibility of her firm.

Melissa Jones Just Launched a Firm in the Wireless Communications