TEST BANK FOR MGMT 12th Edition by Chuck Williams With Correct Answers 2024 Newest Edition

Chapter 1 Key u u




1. Walmartuhasubeenucalleduau"templateuforu21stucenturyucapitalism."
(p.u 3)

FALSE
Lawrenceu-uChapteru01u#1

2. Aubusinessuisuanyuorganizationuthatuisuengageduinumakinguauproductuoruprovidinguauser
(p.u 4) viceuforuauprofit.

TRUE
Lawrenceu-uChapteru01u#2

3. Businessesu andu societyu areu independentu ofu oneu another.
(p.u 4)

FALSE
Lawrenceu-uChapteru01u#3

4. Theustakeholderutheoryuofutheufirmuarguesuthatuaufirm'susoleupurposeuisutoucreateuvalu
(p.u 6) euforuitsushareholders.

FALSE
Lawrenceu-uChapteru01u#4

5. Theuinstrumentaluargumentuforutheustakeholderutheoryuofutheufirmusaysuthatucompan
(p.u 6) iesuperformubetteruifutheyuconsiderutheurightsuanduconcernsuofumultipleugroupsuinusoci
ety.

TRUE
Lawrenceu-uChapteru01u#5

6. Theunormativeuargumentuforutheustakeholderutheoryuofutheufirmusaysuthatutheustakehol
(p.u 7) deruviewuisusimplyuaumoreurealisticudescriptionuofuhowucompaniesureallyuwork.

FALSE
Lawrenceu-uChapteru01u#6

7. Nonmarketustakeholdersuareuthoseuthatuengageuinueconomicutransactionsuwithutheuco
(p.u 8) mpanyuasuitucarriesuoutuitsuprimaryupurposeuofuprovidingusocietyuwithugoodsuanduservi
ces.

FALSE
Lawrenceu-uChapteru01u#7

,8. Marketu stakeholdersu includeu nongovernmentalu organizationsu andu theu media.
(p.u 8)

FALSE
Lawrenceu-uChapteru01u#8

9. Governmentu canu beu consideredu bothu au marketu andu nonmarketu stakeholder.
(p.u10)

TRUE
Lawrenceu-uChapteru01u#9

10. Theuinterestsuofudifferentustakeholdersuoftenucoincide.
(p.u14)

TRUE
Lawrenceu-uChapteru01u#10

11. Stakeholdersuinvolveduwithuoneupartuofuaucompanyuoftenumayuhaveulittleuorunouinvolve
(p.u15) mentuwithuanotherupartuofutheucompany.

TRUE
Lawrenceu-uChapteru01u#11

12. Someuscholarsuhaveusuggesteduthatumanagersupayutheumostuattentionutoustakeholder
(p.u16) supossessingutheuleastusalience.

FALSE
Lawrenceu-uChapteru01u#12

13. Urgencyurefersutoutheuextentutouwhichuaustakeholder'suactionsuareuseenuasuproperuoruap
(p.u16) propriateubyutheubroaderusociety.

FALSE
Lawrenceu-uChapteru01u#13

14. Austakeholderumapuisuauusefulutool,ubecauseuituenablesumanagersutouseeuquicklyu howu
(p.u17) stakeholdersufeeluaboutuanuissueuanduwhetherusalientustakeholdersutendutoubeuinufavo
ruoruopposed.

TRUE
Lawrenceu-uChapteru01u#14

15. Theu externalu environmentu ofu businessu isu static.
(p.u19)

FALSE
Lawrenceu-uChapteru01u#15

,16. Whichustatementuisu notu correctuaboutu theubusiness-societyu interdependence?
(p.u 5)


A. Businessuisuaupartuofu
society.
B. Businessuisuseparatedufromutheurestuofusocietyubyuclearub
oundaries.
C. Businessuactivitiesuimpactuotheruactivitiesuinus
ociety.
D. Actionsubyugovernmentsurarelyusignificantlyuaffectu
business.
Difficulty:u 2u Medium
Lawrenceu-uChapteru01u#16

17. Whichuofutheufollowinguexamplesubestuillustratesutheuboundaryuexchangesuaucompany
(p.u 5) uwoulduencounter uaccording utou theugeneralusystemsu theory?




A. Anuindustrialucompanyuinstallsunewuequipmentuinuitsuplantutoucomplyuwithue
nvironmentaluregulations.
B. Ausoftwareucompanyudevelopsuanuapplicationuforua
uclient.


C. Aupurchasingudepartmentuemployeeunegotiatesuaupriceuonupartsufromuau
supplier.
D. Alluofuthe
uabove.



Difficulty:u 3u Hard
Lawrenceu-uChapteru01u#17

18. Whichuofutheufollowinguisutheuresultuofuanuinseparableurelationshipubetweenubusinessu
(p.u 5) andusociety?


A. Allubusinessudecisionsuhaveuausocialui
mpact.
B. Theuvitalityuofubusinessudependsuonusociety'suactionsuanduat
titudes.
C. Theusurvivaluofubusinessuisuindependentuofus
ociety.
D. BothuAuanduB,ubutunotu
C.
Difficulty:u 2u Medium
Lawrenceu-uChapteru01u#18

, 19. Whichuofutheufollowingustatementsuisunotutrueuaboututheuinteractiveusocialusystem?
(p.u 5)


A. Businessuandusocietyuneed,uasuwelluasuinfluence,ue
achuother.
B. Theuboundaryubetweenubusinessuandusocietyuisuclearuandu
distinct.
C. Businessuisuaupartuofusociety,uandusocietyupenetratesufaruanduoftenuintouth
eubusiness.
D. Businessuandusocietyuareubothuseparateuanduc
onnected.
Difficulty:u 3u Hard
Lawrenceu-uChapteru01u#19

20. Aufirmusubscribingutoutheuownershiputheoryuofutheufirmuwouldumainlyubeuconcerneduwit
(p.u 6) huprovidinguvalueuforuits:


A. Shareholderu
s.
B. Customeru
s.
C. Boarduofu
Directors.
D. Communitu
y.
Difficulty:u 2u Medium
Lawrenceu-uChapteru01u#20

21. Corporationsuthaturunutheiruoperationsuaccordingutoutheustakeholderutheoryuofutheufirmu
(p.u 6) createuvalueuby:


A. Innovatingunewu
products.
B. Increasingutheirustocku
price.
C. Developingutheiruemployees'uprofessionalus
kills.
D. Alluofuthe
uabove.



Difficulty:u 2u Medium
Lawrenceu-uChapteru01u#21