BUS 100 Midterm Exam with Answers
Which statement is not correct about the business-society interdependence?
a. business is a part of society
b. business is separated from the rest of society by clear boundaries
c. business activities impact other activities in society
d. actions by governments rarely affect business - ✔✔d. actions by governments rarely affect
business
Which of the following is the result of the inseparable relationship between business and
society?
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 of these answers are correct: All business decisions have a social impact and the vitality
of business depends on society's actions and attitudes - ✔✔d. both of these answers are
correct: All business decisions have a social impact and the vitality of business depends on
society's actions and attitudes
A firm subscribing to the ownership theory of the firm would mainly be concerned with
providing value for its
a. investors
b. customers
c. board of directors
d. community - ✔✔a. investors
Corporations that run their operations according to the stakeholder theory of the firm create
value by:
,a. innovating new products
b. increasing their stock price
c. developing their employees' professional skills
d. all of these answers are correct - ✔✔d. all of these answers are correct
Which one of the following is considered to be a non market stakeholder of business?
a. customers
b. nongovernmental organizations
c. creditors
d. shareholders - ✔✔b. nongovernmental organizations
Stakeholder groups can include:
a. shareholders
b. business support groups
c. environmental activists
d. all of thee answers are correct - ✔✔d. all of these answers are correct
All of the following are external stakeholders of the firm except:
a. managers
b. customers
c. shareholders
d. suppliers - ✔✔a. managers
A stakeholder analysis:
a. creates quality among all stakeholder interests
b. allows managers to examine two primary questions
c. involves understanding the nature of stakeholder interests
, d. actions by governments rarely affect business - ✔✔c. involves understanding the nature of
stakeholder interests
The five types of stakeholders' power recognized by most experts are: - ✔✔Voting, economic,
political, legal, and informational power
Which of the following is not an example of stakeholders' economic power:
a. a sommelier halts shipments to a business customer that demanded very low prices
b. a social group protests a government's decision to raise taxes
c. a local community boycotts. grocery store suspected of inaccurate weight scales
d. an equal rights group refuses to do business with a company that has a discriminatory hiring
policy - ✔✔b. a social group protests a government's decision to raise taxes
Proactive companies are:
a. much more likely to be forced to defend themselves
b. must less likely to be blindsided by crisis and negative surprises
c. much more likely to be blindsided by crises and negative surprises
d. just as likely to be blindsided by crises and negative surprises - ✔✔b. much less likely to be
blindsided by crises and negative surprises
Contemporary issue management:
a. was useful in the 197os, but not today
b. is used by all government agencies
c. is a linear process
d. is an interactive, forward-thinking process - ✔✔d. is an interactive, forward thinking process
When working well, the issue management process:
a. minimizes dialogue with the stakeholders and focuses on short-term survival
Which statement is not correct about the business-society interdependence?
a. business is a part of society
b. business is separated from the rest of society by clear boundaries
c. business activities impact other activities in society
d. actions by governments rarely affect business - ✔✔d. actions by governments rarely affect
business
Which of the following is the result of the inseparable relationship between business and
society?
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 of these answers are correct: All business decisions have a social impact and the vitality
of business depends on society's actions and attitudes - ✔✔d. both of these answers are
correct: All business decisions have a social impact and the vitality of business depends on
society's actions and attitudes
A firm subscribing to the ownership theory of the firm would mainly be concerned with
providing value for its
a. investors
b. customers
c. board of directors
d. community - ✔✔a. investors
Corporations that run their operations according to the stakeholder theory of the firm create
value by:
,a. innovating new products
b. increasing their stock price
c. developing their employees' professional skills
d. all of these answers are correct - ✔✔d. all of these answers are correct
Which one of the following is considered to be a non market stakeholder of business?
a. customers
b. nongovernmental organizations
c. creditors
d. shareholders - ✔✔b. nongovernmental organizations
Stakeholder groups can include:
a. shareholders
b. business support groups
c. environmental activists
d. all of thee answers are correct - ✔✔d. all of these answers are correct
All of the following are external stakeholders of the firm except:
a. managers
b. customers
c. shareholders
d. suppliers - ✔✔a. managers
A stakeholder analysis:
a. creates quality among all stakeholder interests
b. allows managers to examine two primary questions
c. involves understanding the nature of stakeholder interests
, d. actions by governments rarely affect business - ✔✔c. involves understanding the nature of
stakeholder interests
The five types of stakeholders' power recognized by most experts are: - ✔✔Voting, economic,
political, legal, and informational power
Which of the following is not an example of stakeholders' economic power:
a. a sommelier halts shipments to a business customer that demanded very low prices
b. a social group protests a government's decision to raise taxes
c. a local community boycotts. grocery store suspected of inaccurate weight scales
d. an equal rights group refuses to do business with a company that has a discriminatory hiring
policy - ✔✔b. a social group protests a government's decision to raise taxes
Proactive companies are:
a. much more likely to be forced to defend themselves
b. must less likely to be blindsided by crisis and negative surprises
c. much more likely to be blindsided by crises and negative surprises
d. just as likely to be blindsided by crises and negative surprises - ✔✔b. much less likely to be
blindsided by crises and negative surprises
Contemporary issue management:
a. was useful in the 197os, but not today
b. is used by all government agencies
c. is a linear process
d. is an interactive, forward-thinking process - ✔✔d. is an interactive, forward thinking process
When working well, the issue management process:
a. minimizes dialogue with the stakeholders and focuses on short-term survival
