TEST BANK FOR !! !!
BUSINESS AND SOCIETY STAKEHOLDERS ETHICS !! !! !! !!
PUBLIC POLICY 17TH EDITION BY ANNELAWRENCE
!! !! !! !! !! !! !
Chapter 1-19 Answers are at the end of Each chapter
!! !! !! !! !! !! !! !! !!
Chapter 1
! !!
Student name: !! !!
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
⊚ ! ! false
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.
⊚ ! ! true
⊚ ! ! false
6) The !!normative !!argument !!for !!the !!stakeholder !!theory !!of !!the !!firm !!says !!that !!the
!! stakeholder !!view!is !!simply !!a !!more !!realistic !!description !!of !!how !!companies !!really !!work.
⊚ ! ! true
⊚ ! ! false
,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.
⊚ ! ! true
⊚ ! ! false
12) Some !!scholars !!have !!suggested !!that !!managers !!pay !!the !!most !!attention !!to
!! stakeholders!possessing !!the !!least !!salience.
⊚ ! ! true
⊚ ! ! false
13) The !!organization !!of !!a !!corporation’s !!boundary-spanning !!functions !!is !!complex.
⊚ ! ! true
⊚ ! ! false
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.
B) A !!software !!company !!develops !!an !!application !!for !!a !!client.
C) A !!purchasing !!department !!employee !!negotiates !!a !!price !!on !!parts !!with !!a !!supplier.
D) All !!of !!these !!choices !!are !!correct.
18) The !!inseparable !!relationship !!between !!business !!and !!society !!results !!in !!which !!of !!the
!! following?
A) All !!business !!decisions !!have !!a !!social !!impact.
B) The !!vitality !!of !!business !!depends !!on !!society's !!actions !!and !!attitudes.
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 !!attitudes” !! are !!correct.
19) Which !!of !!the !!following !!statements !!is !!not !!true !!about !!the !!interactive !!social !!system?
A) Business !!and !!society !!need, !!as !!well !!as !!influence, !!each !!other.
B) The !!boundary !!between !!business !!and !!society !!is !!clear !!and !!distinct.
C) Business !!is !!a !!part !!of !!society, !!and !!society !!penetrates !!far !!and !!often !!into !!business.
D) Business !!and !!society !!are !!both !!separate !!and !!connected.
20) A !!firm !!subscribing !!to !!the !!shareholder !!theory !!of !!the !!firm !!would !!mainly !!be
!! concerned !!with!providing !!long-term !!value !!for !!its
A) investors.
B) customers.
C) board !!of !!Directors.
D) community.
, 21) Corporations !!that !!follow !!the !!stakeholder !!theory !!of !!the !!firm !!create !!value !!by
A) constantly !!innovating !!new !!products.
B) increasing !!their !!stock !!price.
C) developing !!their !!employees’ !!skills.
D) All !!of !!these !!choices !!are !!correct.
22) Which !!argument !!says !!that !!stakeholder !!management !!realistically !!depicts !!how
!! companies!really !!work?
A) descriptive !!argument
B) instrumental !!argument
C) normative !!argument
D) fiduciary !!argument
23) The !!instrumental !!argument !!states !!that !!stakeholder
management !!is
!!
A) a !!more !!realistic !!description !!of !!how !!companies !!really !!work.
B) more !!effective !!as !!a !!corporate !!strategy.
C) simply !!the !!right !!thing !!to !!do.
D) determined !!by !!the !!amount !!of !!stock !!issued.
24) The !!fiduciary !!duty !!of !!managers !!benefits !!a !!firm's
A) shareholders.
B) customers.
C) employees.
D) All !!of !!these !!choices !!are !!correct.
25) The !!main !!reason !!a !!number !!of !!European !!countries !!require !!public !!companies !!to
!! include!employee !!members !!on !!their !!boards !!of !!directors !!is !!that
A) the !!employees !!will !!be !!available !!to !!answer !!other !!board !!members' !!questions.
B) management !!will !!not !!have !!to !!attend !!the !!meetings.
C) employees' !!interests !!will !!be !!explicitly !!represented.
D) employees !!will !!have !!more !!power !!than !!any !!other !!stakeholder.
26) Stakeholder !!groups !!can !!include
A) shareholders.
B) business !!support !!groups.
C) environmental !!activists.
D) All !!of !!these !!choices !!are !!correct.
BUSINESS AND SOCIETY STAKEHOLDERS ETHICS !! !! !! !!
PUBLIC POLICY 17TH EDITION BY ANNELAWRENCE
!! !! !! !! !! !! !
Chapter 1-19 Answers are at the end of Each chapter
!! !! !! !! !! !! !! !! !!
Chapter 1
! !!
Student name: !! !!
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
⊚ ! ! false
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.
⊚ ! ! true
⊚ ! ! false
6) The !!normative !!argument !!for !!the !!stakeholder !!theory !!of !!the !!firm !!says !!that !!the
!! stakeholder !!view!is !!simply !!a !!more !!realistic !!description !!of !!how !!companies !!really !!work.
⊚ ! ! true
⊚ ! ! false
,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.
⊚ ! ! true
⊚ ! ! false
12) Some !!scholars !!have !!suggested !!that !!managers !!pay !!the !!most !!attention !!to
!! stakeholders!possessing !!the !!least !!salience.
⊚ ! ! true
⊚ ! ! false
13) The !!organization !!of !!a !!corporation’s !!boundary-spanning !!functions !!is !!complex.
⊚ ! ! true
⊚ ! ! false
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.
B) A !!software !!company !!develops !!an !!application !!for !!a !!client.
C) A !!purchasing !!department !!employee !!negotiates !!a !!price !!on !!parts !!with !!a !!supplier.
D) All !!of !!these !!choices !!are !!correct.
18) The !!inseparable !!relationship !!between !!business !!and !!society !!results !!in !!which !!of !!the
!! following?
A) All !!business !!decisions !!have !!a !!social !!impact.
B) The !!vitality !!of !!business !!depends !!on !!society's !!actions !!and !!attitudes.
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 !!attitudes” !! are !!correct.
19) Which !!of !!the !!following !!statements !!is !!not !!true !!about !!the !!interactive !!social !!system?
A) Business !!and !!society !!need, !!as !!well !!as !!influence, !!each !!other.
B) The !!boundary !!between !!business !!and !!society !!is !!clear !!and !!distinct.
C) Business !!is !!a !!part !!of !!society, !!and !!society !!penetrates !!far !!and !!often !!into !!business.
D) Business !!and !!society !!are !!both !!separate !!and !!connected.
20) A !!firm !!subscribing !!to !!the !!shareholder !!theory !!of !!the !!firm !!would !!mainly !!be
!! concerned !!with!providing !!long-term !!value !!for !!its
A) investors.
B) customers.
C) board !!of !!Directors.
D) community.
, 21) Corporations !!that !!follow !!the !!stakeholder !!theory !!of !!the !!firm !!create !!value !!by
A) constantly !!innovating !!new !!products.
B) increasing !!their !!stock !!price.
C) developing !!their !!employees’ !!skills.
D) All !!of !!these !!choices !!are !!correct.
22) Which !!argument !!says !!that !!stakeholder !!management !!realistically !!depicts !!how
!! companies!really !!work?
A) descriptive !!argument
B) instrumental !!argument
C) normative !!argument
D) fiduciary !!argument
23) The !!instrumental !!argument !!states !!that !!stakeholder
management !!is
!!
A) a !!more !!realistic !!description !!of !!how !!companies !!really !!work.
B) more !!effective !!as !!a !!corporate !!strategy.
C) simply !!the !!right !!thing !!to !!do.
D) determined !!by !!the !!amount !!of !!stock !!issued.
24) The !!fiduciary !!duty !!of !!managers !!benefits !!a !!firm's
A) shareholders.
B) customers.
C) employees.
D) All !!of !!these !!choices !!are !!correct.
25) The !!main !!reason !!a !!number !!of !!European !!countries !!require !!public !!companies !!to
!! include!employee !!members !!on !!their !!boards !!of !!directors !!is !!that
A) the !!employees !!will !!be !!available !!to !!answer !!other !!board !!members' !!questions.
B) management !!will !!not !!have !!to !!attend !!the !!meetings.
C) employees' !!interests !!will !!be !!explicitly !!represented.
D) employees !!will !!have !!more !!power !!than !!any !!other !!stakeholder.
26) Stakeholder !!groups !!can !!include
A) shareholders.
B) business !!support !!groups.
C) environmental !!activists.
D) All !!of !!these !!choices !!are !!correct.
