Which of the following statements does not accurately support a sound principle of shareholder communications?

Prepare for the NACD Certification Exam with flashcards and multiple choice questions. Each question comes with hints and explanations to aid your understanding. Ensure you are fully ready for your test!

The principle of effective shareholder communications emphasizes the importance of not only disseminating information but also ensuring that it is quantifiable and meaningful. The statement regarding the idea that communication does not need to be measurable contradicts the core tenet of accountability in shareholder relations.

Measurable communication allows organizations to assess the impact of their messaging and engagement strategies, ensuring they meet shareholder expectations and can adjust communications accordingly. This kind of analysis fosters a more strategic approach to investor relations, contributing to the overall success and credibility of the organization.

In contrast, the other statements align well with sound communication principles. Frequent updates help in building trust, while transparency enhances investor relations. Thus, the notion that communication is more about quantity than quality or measurable impact does not hold up against these important principles of shareholder communication.

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