COMM 216 FINAL EXAM: BUSINESS AND SOCIETYPRACTICE
EXAMINATION WITH CORRECT ANSWERS, TABLES, AND DIAGRAMS
This examination covers the dynamic relationship between business and society,
emphasizing ethical frameworks and stakeholder theory. It distinguishes between the
social contract, an implied societal agreement, and social license, the public trust
businesses must earn. The exam contrasts ethical approaches like deontological (rule-
based), utilitarian (consequence-based), and virtue ethics (character-based). It
evaluates economic systems, from laissez-faire capitalism to the responsible enterprise
system, which incorporates accountability. The Triple Bottom Line framework assesses
corporate performance across economic, social, and environmental dimensions.
Stakeholder communication requires credibility, balance, strategic integration, and
comparability. The exam explores Corporate Social Responsibility (CSR) and
corporate citizenship as holistic approaches to sustainable, ethical business practices.
PART A: MULTIPLE CHOICE QUESTIONS
Instructions: Select the best answer for each question.
1. What is the privilege of operating in society with minimal formalized restrictions
based on maintaining public trust?
A) Social Contract
B) Social License
C) Legitimacy
D) Corporate Citizenship
,Answer: B) Social License
Explanation: Social license refers to the ongoing approval and acceptance of a
company's standard business practices by its employees, stakeholders, and the
general public. It is based on maintaining public trust and doing what is acceptable
to stakeholders.
2. Which ethical approach determines goodness by examining the means of an act
rather than its consequences?
A) Utilitarian ethics
B) Teleological ethics
C) Deontological ethics
D) Virtue ethics
Answer: C) Deontological ethics
Explanation: Deontological ethics determines rightness from examining the means
for acts rather than from the consequences. Decisions are based upon duty and
adherence to universal principles.
3. Which type of capitalism involves absolute minimum government interference,
with government limited to essential services like police and fire protection?
A) Responsible enterprise system
B) Consumer capitalism
, C) Laissez-faire capitalism
D) Producer capitalism
Answer: C) Laissez-faire capitalism
Explanation: Laissez-faire capitalism operates with absolute minimum interference
by the government in the affairs of business. Government involvement is restricted
to providing essential services such as police and fire protection.
4. What does the Triple Bottom Line (TBL) evaluate?
A) Profit, revenue, and market share
B) Economic, social, and environmental performance
C) Stakeholder satisfaction, employee morale, and productivity
D) Short-term, medium-term, and long-term goals
Answer: B) Economic, social, and environmental performance
Explanation: The Triple Bottom Line evaluates a corporation's performance
according to a summary of the economic, ethical/social, and environmental value
the corporation adds or destroys.
5. Which of the following is a PRIMARY stakeholder?
A) Future generations
B) Political parties
EXAMINATION WITH CORRECT ANSWERS, TABLES, AND DIAGRAMS
This examination covers the dynamic relationship between business and society,
emphasizing ethical frameworks and stakeholder theory. It distinguishes between the
social contract, an implied societal agreement, and social license, the public trust
businesses must earn. The exam contrasts ethical approaches like deontological (rule-
based), utilitarian (consequence-based), and virtue ethics (character-based). It
evaluates economic systems, from laissez-faire capitalism to the responsible enterprise
system, which incorporates accountability. The Triple Bottom Line framework assesses
corporate performance across economic, social, and environmental dimensions.
Stakeholder communication requires credibility, balance, strategic integration, and
comparability. The exam explores Corporate Social Responsibility (CSR) and
corporate citizenship as holistic approaches to sustainable, ethical business practices.
PART A: MULTIPLE CHOICE QUESTIONS
Instructions: Select the best answer for each question.
1. What is the privilege of operating in society with minimal formalized restrictions
based on maintaining public trust?
A) Social Contract
B) Social License
C) Legitimacy
D) Corporate Citizenship
,Answer: B) Social License
Explanation: Social license refers to the ongoing approval and acceptance of a
company's standard business practices by its employees, stakeholders, and the
general public. It is based on maintaining public trust and doing what is acceptable
to stakeholders.
2. Which ethical approach determines goodness by examining the means of an act
rather than its consequences?
A) Utilitarian ethics
B) Teleological ethics
C) Deontological ethics
D) Virtue ethics
Answer: C) Deontological ethics
Explanation: Deontological ethics determines rightness from examining the means
for acts rather than from the consequences. Decisions are based upon duty and
adherence to universal principles.
3. Which type of capitalism involves absolute minimum government interference,
with government limited to essential services like police and fire protection?
A) Responsible enterprise system
B) Consumer capitalism
, C) Laissez-faire capitalism
D) Producer capitalism
Answer: C) Laissez-faire capitalism
Explanation: Laissez-faire capitalism operates with absolute minimum interference
by the government in the affairs of business. Government involvement is restricted
to providing essential services such as police and fire protection.
4. What does the Triple Bottom Line (TBL) evaluate?
A) Profit, revenue, and market share
B) Economic, social, and environmental performance
C) Stakeholder satisfaction, employee morale, and productivity
D) Short-term, medium-term, and long-term goals
Answer: B) Economic, social, and environmental performance
Explanation: The Triple Bottom Line evaluates a corporation's performance
according to a summary of the economic, ethical/social, and environmental value
the corporation adds or destroys.
5. Which of the following is a PRIMARY stakeholder?
A) Future generations
B) Political parties
