Understanding the Role of the Corporation Annual Report

Assertion (A): While the corporation annual report is now regarded as the keystone of the investor relations programme; it is also being accepted as one of the important documents of a well-rounded public relations plan.

Reason (R): Before deciding on a variety of the content or the style and character of the format, it is advisable for those who are to prepare the annual report to have some knowledge of the quality or intelligence level of the reader.

(A) Both (A) and (R) are true

(B) Both (A) and (R) are true, but (R) is not the correct explanation

(C) (A) is true, but (R) is false

(D) (A) is false, but (R) is true

Correct Ans: (B)

Explanation:

The corporation annual report has become a vital part of the investor relations program. It is no longer just a financial document. It is also recognized as a crucial element of a well-rounded public relations plan. This underscores its importance in conveying information to various stakeholders.

Before preparing the annual report, it is essential to consider the quality or intelligence level of the intended readers. This helps in determining the content and format of the report. For example, a report targeted at financial analysts would differ from one aimed at the general public. Therefore, understanding the audience is critical.

While the assertion (A) about the importance of the annual report is true, the reason (R), though true in its own right, does not fully explain why the report is essential for public relations. The primary role of the report is to communicate with investors and stakeholders, while knowing the audience helps in presenting the information effectively.

Thus, the correct answer is (B) Both (A) and (R) are true, but (R) is not the correct explanation.

Nivisha Kapoor- Author
Nivisha Kapoor

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