What tactic does Morgan employ to manipulate the perception of Westinghouse's financial stability?

• A. He increases investment in Westinghouse
• B. He subtly suggests that Westinghouse is unstable
• C. He publicly praises Westinghouse's innovations
• D. He invests heavily in Westinghouse stocks

Answer: (B)

Morgan's tactic of subtly suggesting that Westinghouse is unstable is instrumental in manipulating public perception and investor confidence. By casting doubt on Westinghouse's financial health, Morgan aimed to weaken the company's standing in the market. This tactic often creates a ripple effect, where potential investors may hesitate to put their money into a company perceived as unstable, leading to a decrease in stock value and increased difficulties for Westinghouse in securing further financing.

The choice to imply instability rather than directly attacking Westinghouse gives Morgan plausible deniability and allows him to operate in a more discreet manner. It can create an environment of uncertainty that further benefits Morgan’s strategic interests in the industry.

In contrast, the other choices involve actions that would either support or commend Westinghouse, which is not aligned with a strategy of undermining the company's perceived stability. Increasing investment or praising the company's innovations would bolster confidence in Westinghouse, counteracting the intended effect of destabilization. Investing heavily in Westinghouse stocks would also contradict Morgan's goal of manipulating the perception of instability, as such an investment would indicate confidence in the company's future.