BUS 100 Midterm Exam with Answers
Corporations that run their operations according to the stakeholder theory of a firm create
value by:
- Increasing their stock prices
- Developing their employee's professional skills
- Innovating new products
- All of the above - ✔✔All of the above
Which statement is not correct about the business-society interdependence
- Actions by governments rarely affect business
- Business is separated from the rest of society by clear boundaries
- Business activities impact other activities in society
- Business is a part of society - ✔✔Business is separated from the rest of society by clear
boundaries
Customers can exercise economic stakeholder power by:
- Boycotting products if they believe the goods are too expensive
,- Voting on a proposed merger for the company and a competitor
- Applying for a job with the company
- Attending the company's annual meeting - ✔✔Boycotting products if they believe the goods
are too expensive
Which of the following statements is not true about the interactive social system?
- The boundary between business and society is clear and distinct
- Business and society need, as well as influence, each other
- Business and society are both separate and connected
- Business is a part of society, and society penetrates far and often into the business - ✔✔The
boundary between business and society is clear and distinct
What kind of power might a local community use to influence a company's decisions?
- Publicizing an issue
- Challenging whether a business activity should continue to operate
- Lobbying government policymakers for regulations
- All of the above - ✔✔All of the above
,Contemporary issue management:
- Is a linear process
- Was useful in the 1970s, but not today
- Is an interactive, forward-thinking process
- Is used by all government agencies - ✔✔Is an interactive, forward thinking process
Over time, the nature of business's relationship with its stakeholders often:
- Evolves through a series of stages
- Remains static
- Becomes more hostile
- None of the above - ✔✔Evolves through a series of stages
Proactive companies are:
- Just as likely to be blindsided by crises and negative surprises
- Much more likely to be forced to defend itself in a lawsuit brought by a stakeholder
- Much more likely to be blindsided by crises and negative surprises
, - Much less likely to be blindsided by crises and negative surprises - ✔✔Much less likely to be
blindsided by crises and negative surprises
Stakeholder engagement is:
- Competitive intelligence being collected ethically and systematically
- Any issue that is of mutual concern to an organization and one or more of its stakeholders
- The acquisition of information gained from analyzing the multiple environments
- The process of ongoing relationship building between a business and its stakeholders - ✔✔The
process of ongoing relationship building between a business and its stakeholders
The issues management process is a
- Confusing process that is rarely used to help top management within an organization
- Beneficial tool used only to minimize the negative effects of a public issue for the
organization's advantage
- Systematic process companies use when responding to public issues that are of greatest
importance to the business
- Beneficial tool used only to maximize the positive effects of a public issue for the
organization's advantage - ✔✔Systematic process companies use when responding to public
issues that are of greatest importance to the business
Corporations that run their operations according to the stakeholder theory of a firm create
value by:
- Increasing their stock prices
- Developing their employee's professional skills
- Innovating new products
- All of the above - ✔✔All of the above
Which statement is not correct about the business-society interdependence
- Actions by governments rarely affect business
- Business is separated from the rest of society by clear boundaries
- Business activities impact other activities in society
- Business is a part of society - ✔✔Business is separated from the rest of society by clear
boundaries
Customers can exercise economic stakeholder power by:
- Boycotting products if they believe the goods are too expensive
,- Voting on a proposed merger for the company and a competitor
- Applying for a job with the company
- Attending the company's annual meeting - ✔✔Boycotting products if they believe the goods
are too expensive
Which of the following statements is not true about the interactive social system?
- The boundary between business and society is clear and distinct
- Business and society need, as well as influence, each other
- Business and society are both separate and connected
- Business is a part of society, and society penetrates far and often into the business - ✔✔The
boundary between business and society is clear and distinct
What kind of power might a local community use to influence a company's decisions?
- Publicizing an issue
- Challenging whether a business activity should continue to operate
- Lobbying government policymakers for regulations
- All of the above - ✔✔All of the above
,Contemporary issue management:
- Is a linear process
- Was useful in the 1970s, but not today
- Is an interactive, forward-thinking process
- Is used by all government agencies - ✔✔Is an interactive, forward thinking process
Over time, the nature of business's relationship with its stakeholders often:
- Evolves through a series of stages
- Remains static
- Becomes more hostile
- None of the above - ✔✔Evolves through a series of stages
Proactive companies are:
- Just as likely to be blindsided by crises and negative surprises
- Much more likely to be forced to defend itself in a lawsuit brought by a stakeholder
- Much more likely to be blindsided by crises and negative surprises
, - Much less likely to be blindsided by crises and negative surprises - ✔✔Much less likely to be
blindsided by crises and negative surprises
Stakeholder engagement is:
- Competitive intelligence being collected ethically and systematically
- Any issue that is of mutual concern to an organization and one or more of its stakeholders
- The acquisition of information gained from analyzing the multiple environments
- The process of ongoing relationship building between a business and its stakeholders - ✔✔The
process of ongoing relationship building between a business and its stakeholders
The issues management process is a
- Confusing process that is rarely used to help top management within an organization
- Beneficial tool used only to minimize the negative effects of a public issue for the
organization's advantage
- Systematic process companies use when responding to public issues that are of greatest
importance to the business
- Beneficial tool used only to maximize the positive effects of a public issue for the
organization's advantage - ✔✔Systematic process companies use when responding to public
issues that are of greatest importance to the business
