TEST6BANK Business6and6Society:6Stakeholders,6Eth ics,6Public6Policy,617th6Edition By6Lawrence,6Weber,6All6Chapters616-619

Student6name:6 TRUE/FALSE6 6Write6'T'6if6the6statement6is6true6and6'F'6if6the6statement6is6false. 1) A6business6is6any6organization6that6is6engaged6in6making6a6product6or6provid ing6a6service6for6a6profit. ⊚6 true ⊚6 false 2) The6term6stakeholder6refers6exclusively6to6the6founders6of6a6business6organiza tion. ⊚6 true ⊚6 false 3) Businesses6and6society6are6independent6of6each6other. ⊚6 true ⊚6 false 4) The6stakeholder6theory6of6the6firm6argues6that6a6firm’s6sole6purpose6is6t o6create6long-term6value6for6its6shareholders. ⊚6 true ⊚6 false 5) The6instrumental6argument6for6the6stakeholder6theory6of6the6firm6says 6that6companies6perform6better6if6they6consider6the6rights6and6concern s6of6multiple6groups6in6society. ⊚6 true ⊚6 false 6) The6normative6argument6for6the6stakeholder6theory6of6the6firm6says6that6the 6stakeholder6view6is6simply6a6more6realistic6description6of6how6companies6re ally6work. ⊚6 true ⊚6 false 7) Nonmarket6stakeholders6are6those6that6engage6in6economic6transactions6with 6the6company6as6it6carries6out6its6primary6purpose6of6providing6society6with6 goods6and6services. ⊚6 true ⊚6 false 8) Market6stakeholders6include6nongovernmental6organizations6and6business6suppor t6groups. ⊚6 true ⊚6 false 9) Government6can6be6considered6both6a6market6and6a6nonmarket6stakeholder. ⊚6 true ⊚6 false 10) The6interests6of6different6stakeholders6often6coincide.