PRCM 2500 EXAM 2 QUESTIONS COMPLETE WITH CORRECT ANSWERS

PRCM 2500 EXAM 2 QUESTIONS COMPLETE WITH CORRECT ANSWERS .Investor Relations - ANSWERS-strategic management responsibility that integrates finance, communication, marketing and securities law compliance to enable the most effective two-way communication between a company, the financial community, and other constituencies, which ultimately contributes to a company's securities achieving fair valuation .Publicly Owned Company - ANSWERS-a company that has sold a portion of itself to the public via an initial public offering of some of its stock, meaning shareholders have claim to part of the company's assets and profits .Who do practitioners have to mediate with for investor relations? - ANSWERS-Small investors Board members Management Regulators Media Legislators Economists .Sherman Antitrust Act - ANSWERS-Meant to break up monopolies .Clayton Act - ANSWERS-A federal law that prevents price discrimination .Federal Trade Commission Act (1914) - ANSWERS-Meant to keep interstate trade open to competition .Securities Act - ANSWERS-Require corporation to publish a prospectus (a preliminary printed statement about what the organization does, which would be distributed to potential investors) .Securities Exchange Act of 1934 - ANSWERS-Created the Securities and Exchange Commission (SEC) Deals with conflict of interest Attempts to keep corporate officials from gaining financially from information that the public does not know Regulates insider trading .Role of Investor Relations - ANSWERS-become an interpreter and moderator requires skill and objectivity in representing both the average investor and the middle-class citizen .Specifics of Investor Relations Function - ANSWERS-Create communication strategy appropriate to management goals Prepare public literature Maintain relationships with financial people? .Specific Situations Requiring Communication - ANSWERS-Going public, splitting stocks Acquisitions and mergers Identity changes - new logo, name, headquarters, ownership New products, services Annual report Annual meetings .Who is the most important public? - ANSWERS-Customers .Difference Between Marketing and PR - ANSWERS-Marketing is ultimately product- and service-specific. Public relations is a broader strategic communication process that builds mutually beneficial relationships between organizations and their publics .Shared fundamental concepts between marketing and PR - ANSWERS-Research—analyzing marketing opportunities Publics—selecting target markets Communication plan—developing a marketing mix Evaluation—managing the marketing effort .4 things PR strategy can do that marketing can't - ANSWERS-Concern about internal relations and publics