Goldstar Investments has just learned that it is being sued for securities fraud. What should top management at Goldstar do?
A)Nothing. The media may never find out.
B)Have someone leak the news to the media.
C)Hold a press conference to announce the bad news before the media does.
D)Disappear and hide out in a foreign country.

Question

Goldstar Investments has just learned that it is being sued for securities fraud. What should top management at Goldstar do? 
A)Nothing. The media may never find out.
B)Have someone leak the news to the media.
C)Hold a press conference to announce the bad news before the media does.
D)Disappear and hide out in a foreign country.

Quizplus · Accepted Answer

It is important for Goldstar to be transparent and take responsibility for the situation. Holding a press conference will show that the company takes the issue seriously and is willing to address it directly. Ignoring the issue or trying to hide it will only make the situation worse. Leaking the news to the media is unethical and could result in further legal and reputational damage. Disappearing and hiding out is not a viable solution and will only make the situation worse.

Goldstar Investments Has Just Learned That It Is Being Sued