Goldstar Investments has just learned that it is being sued for securities fraud.After gathering information and confirming the lawsuit,what should top management at Goldstar do next?
A)Wait for the word to get out via social media before acting.
B)Have someone leak the news to the media.
C)Hold a press conference to announce the bad news to the public.
D)Inform all Goldstar employees either personally or via electronic messages.

Question

Quizplus · Accepted Answer

The best next step for top management at Goldstar is to inform all employees about the lawsuit. It is important to keep employees informed and address any concerns they may have. This can be done either personally or via electronic messages. Waiting for the news to get out via social media or leaking the news to the media would not be a recommended course of action, as it could lead to further damage of the company's reputation. Holding a press conference is also not necessary at this stage, as the lawsuit may still be in its early stages and more information may need to be gathered before addressing the public.

Goldstar Investments Has Just Learned That It Is Being Sued