BUS 100 Midterm Review – Introduction to Business – 2026 – Study and Practice
Guide
Corporations that run their operations according to the stakeholder theory of a firm create
value by:
- Increasing their stock prices
- Developing their employee's professional skills
- Innovating new products
- All of the above - correct answer ✔✔ All of the above
Which statement is not correct about the business-society interdependence
- Actions by governments rarely affect business
- Business is separated from the rest of society by clear boundaries
- Business activities impact other activities in society
- Business is a part of society - correct answer ✔✔ Business is a part of society
Customers can exercise economic stakeholder power by:
,- Boycotting products if they believe the goods are too expensive
- Voting on a proposed merger for the company and a competitor
- Applying for a job with the company
- Attending the company's annual meeting - correct answer ✔✔ Boycotting products if they
believe the goods are too expensive
Which of the following statements is not true about the interactive social system?
- The boundary between business and society is clear and distinct
- Business and society need, as well as influence, each other
- Business and society are both separate and connected
- Business is a part of society, and society penetrates far and often into the business - correct
answer ✔✔ The boundary between business and society is clear and distinct
What kind of power might a local community use to influence a company's decisions?
- Publicizing an issue
- Challenging whether a business activity should continue to operate
- Lobbying government policymakers for regulations
,- All of the above - correct answer ✔✔ All of the above
Contemporary issue management:
- Is a linear process
- Was useful in the 1970s, but not today
- Is an interactive, forward-thinking process
- Is used by all government agencies - correct answer ✔✔ Is an interactive, forward thinking
process
Over time, the nature of business's relationship with its stakeholders often:
- Evolves through a series of stages
- Remains static
- Becomes more hostile
- None of the above - correct answer ✔✔ Evolves through a series of stages
Proactive companies are:
, - Just as likely to be blindsided by crises and negative surprises
- Much more likely to be forced to defend itself in a lawsuit brought by a stakeholder
- Much more likely to be blindsided by crises and negative surprises
- Much less likely to be blindsided by crises and negative surprises - correct answer ✔✔ Much
less likely to be blindsided by crises and negative surprises
Stakeholder engagement is:
- Competitive intelligence being collected ethically and systematically
- Any issue that is of mutual concern to an organization and one or more of its stakeholders
- The acquisition of information gained from analyzing the multiple environments
- The process of ongoing relationship building between a business and its stakeholders - correct
answer ✔✔ The process of ongoing relationship building between a business and its
stakeholders
The issues management process is a
- Confusing process that is rarely used to help top management within an organization
- Beneficial tool used only to minimize the negative effects of a public issue for the
organization's advantage
Guide
Corporations that run their operations according to the stakeholder theory of a firm create
value by:
- Increasing their stock prices
- Developing their employee's professional skills
- Innovating new products
- All of the above - correct answer ✔✔ All of the above
Which statement is not correct about the business-society interdependence
- Actions by governments rarely affect business
- Business is separated from the rest of society by clear boundaries
- Business activities impact other activities in society
- Business is a part of society - correct answer ✔✔ Business is a part of society
Customers can exercise economic stakeholder power by:
,- Boycotting products if they believe the goods are too expensive
- Voting on a proposed merger for the company and a competitor
- Applying for a job with the company
- Attending the company's annual meeting - correct answer ✔✔ Boycotting products if they
believe the goods are too expensive
Which of the following statements is not true about the interactive social system?
- The boundary between business and society is clear and distinct
- Business and society need, as well as influence, each other
- Business and society are both separate and connected
- Business is a part of society, and society penetrates far and often into the business - correct
answer ✔✔ The boundary between business and society is clear and distinct
What kind of power might a local community use to influence a company's decisions?
- Publicizing an issue
- Challenging whether a business activity should continue to operate
- Lobbying government policymakers for regulations
,- All of the above - correct answer ✔✔ All of the above
Contemporary issue management:
- Is a linear process
- Was useful in the 1970s, but not today
- Is an interactive, forward-thinking process
- Is used by all government agencies - correct answer ✔✔ Is an interactive, forward thinking
process
Over time, the nature of business's relationship with its stakeholders often:
- Evolves through a series of stages
- Remains static
- Becomes more hostile
- None of the above - correct answer ✔✔ Evolves through a series of stages
Proactive companies are:
, - Just as likely to be blindsided by crises and negative surprises
- Much more likely to be forced to defend itself in a lawsuit brought by a stakeholder
- Much more likely to be blindsided by crises and negative surprises
- Much less likely to be blindsided by crises and negative surprises - correct answer ✔✔ Much
less likely to be blindsided by crises and negative surprises
Stakeholder engagement is:
- Competitive intelligence being collected ethically and systematically
- Any issue that is of mutual concern to an organization and one or more of its stakeholders
- The acquisition of information gained from analyzing the multiple environments
- The process of ongoing relationship building between a business and its stakeholders - correct
answer ✔✔ The process of ongoing relationship building between a business and its
stakeholders
The issues management process is a
- Confusing process that is rarely used to help top management within an organization
- Beneficial tool used only to minimize the negative effects of a public issue for the
organization's advantage
