Franklyn A Plus Pass
Complete Test Bank
Business and Society: Stakeholders Ethics
Public Policy
17TH Edition
by Anne Lawrence (Author), James Weber
All Chapters| Latest
Fr
an
kl
yn
e
A
pl
us
Pa
1|Page
ss
, Franklyn A Plus Pass
Chapter 1-19 Answers are at the end of Each chapter
Chapter 1
TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false.
1) A business is any organization that is engaged in making a product or providing a service for a profit.
⊚ true
⊚ false
2) The term stakeholder refers exclusively to the founders of a business organization.
⊚ true
⊚ false
3) Businesses and society are independent of each other.
⊚ true
⊚ false
4) The stakeholder theory of the firm argues that a firm‘s sole purpose is to create long-term value for its
shareholders.
⊚ true
Fr
⊚ false
an
kl
5) The instrumental argument for the stakeholder theory of the firm says that companies perform better if they
consider the rights and concerns of multiple groups in society.
yn
⊚ true
e
⊚ false
A
6) The normative argument for the stakeholder theory of the firm says that the stakeholder view is simply a more
pl
realistic description of how companies really work.
us
⊚ true
⊚ false
Pa
2|Page
ss
, Franklyn A Plus Pass
7) Nonmarket stakeholders are those that engage in economic transactions with the company as it carries out its
primary purpose of providing society with goods and services.
⊚ true
⊚ false
8) Market stakeholders include nongovernmental organizations and business support groups.
⊚ true
⊚ false
9) Government can be considered both a market and a nonmarket stakeholder.
⊚ true
⊚ false
10) The interests of different stakeholders often coincide.
⊚ true
⊚ false
11) The first step of stakeholder analysis is to identify relevant stakeholders.
Fr
⊚ true
an
⊚ false
kl
12) Some scholars have suggested that managers pay the most attention to stakeholders possessing the least salience.
yn
⊚ true
e
⊚ false
A
13) The organization of a corporation‘s boundary-spanning functions is complex.
pl
⊚ true
us
⊚ false
Pa
3|Page
ss
, Franklyn A Plus Pass
14) Businesses are increasingly trying to meet their commitments to multiple stakeholders.
⊚ true
⊚ false
15) The external environment of business is static.
⊚ true
⊚ false
MULTIPLE CHOICE - Choose the one alternative that best completes the statement or
answers the question.
16) The relationship between business and society is most accurately described by which statement?
A) Business is an unbounded entity within the larger bounded entity of society.
B) Society is a distinct bounded entity within the larger bounded entity of business.
C) Business is a distinct bounded entity separate from the bounded entity of society.
D) Business is a distinct bounded entity within the larger bounded entity of society.
17) According to general systems theory, boundary exchanges are exemplified by which of the following?
A) An industrial company installs new equipment in its plant to comply with environmental regulations.
Fr
B) A software company develops an application for a client.
an
C) A purchasing department employee negotiates a price on parts with a supplier.
kl
D) All of these choices are correct.
yn
18) The inseparable relationship between business and society results in which of the following?
e
A) All business decisions have a social impact.
A
B) The vitality of business depends on society's actions and attitudes.
pl
C) The survival of business is independent of society.
D) Both ―All business decisions have a social impact‖ and ―The vitality of business depends on society‘s actions and
us
attitudes‖ are correct.
Pa
4|Page
ss
Complete Test Bank
Business and Society: Stakeholders Ethics
Public Policy
17TH Edition
by Anne Lawrence (Author), James Weber
All Chapters| Latest
Fr
an
kl
yn
e
A
pl
us
Pa
1|Page
ss
, Franklyn A Plus Pass
Chapter 1-19 Answers are at the end of Each chapter
Chapter 1
TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false.
1) A business is any organization that is engaged in making a product or providing a service for a profit.
⊚ true
⊚ false
2) The term stakeholder refers exclusively to the founders of a business organization.
⊚ true
⊚ false
3) Businesses and society are independent of each other.
⊚ true
⊚ false
4) The stakeholder theory of the firm argues that a firm‘s sole purpose is to create long-term value for its
shareholders.
⊚ true
Fr
⊚ false
an
kl
5) The instrumental argument for the stakeholder theory of the firm says that companies perform better if they
consider the rights and concerns of multiple groups in society.
yn
⊚ true
e
⊚ false
A
6) The normative argument for the stakeholder theory of the firm says that the stakeholder view is simply a more
pl
realistic description of how companies really work.
us
⊚ true
⊚ false
Pa
2|Page
ss
, Franklyn A Plus Pass
7) Nonmarket stakeholders are those that engage in economic transactions with the company as it carries out its
primary purpose of providing society with goods and services.
⊚ true
⊚ false
8) Market stakeholders include nongovernmental organizations and business support groups.
⊚ true
⊚ false
9) Government can be considered both a market and a nonmarket stakeholder.
⊚ true
⊚ false
10) The interests of different stakeholders often coincide.
⊚ true
⊚ false
11) The first step of stakeholder analysis is to identify relevant stakeholders.
Fr
⊚ true
an
⊚ false
kl
12) Some scholars have suggested that managers pay the most attention to stakeholders possessing the least salience.
yn
⊚ true
e
⊚ false
A
13) The organization of a corporation‘s boundary-spanning functions is complex.
pl
⊚ true
us
⊚ false
Pa
3|Page
ss
, Franklyn A Plus Pass
14) Businesses are increasingly trying to meet their commitments to multiple stakeholders.
⊚ true
⊚ false
15) The external environment of business is static.
⊚ true
⊚ false
MULTIPLE CHOICE - Choose the one alternative that best completes the statement or
answers the question.
16) The relationship between business and society is most accurately described by which statement?
A) Business is an unbounded entity within the larger bounded entity of society.
B) Society is a distinct bounded entity within the larger bounded entity of business.
C) Business is a distinct bounded entity separate from the bounded entity of society.
D) Business is a distinct bounded entity within the larger bounded entity of society.
17) According to general systems theory, boundary exchanges are exemplified by which of the following?
A) An industrial company installs new equipment in its plant to comply with environmental regulations.
Fr
B) A software company develops an application for a client.
an
C) A purchasing department employee negotiates a price on parts with a supplier.
kl
D) All of these choices are correct.
yn
18) The inseparable relationship between business and society results in which of the following?
e
A) All business decisions have a social impact.
A
B) The vitality of business depends on society's actions and attitudes.
pl
C) The survival of business is independent of society.
D) Both ―All business decisions have a social impact‖ and ―The vitality of business depends on society‘s actions and
us
attitudes‖ are correct.
Pa
4|Page
ss
