MGMT 320 CORRECT GUIDE STUDY ANSWERS AND
QUESTIONS SET A+
✔✔Difference Between Shareholder Theory and Stakeholder Theory - ✔✔Shareholder
theory focuses on maximizing long-term shareholder value, while stakeholder theory
focuses on creating value for society and all stakeholders.
✔✔Difference Between Market and Nonmarket Stakeholders - ✔✔Market stakeholders
engage in economic transactions with the company, while nonmarket stakeholders
influence or are affected by the company without direct economic exchange.
✔✔Difference Between Internal and External Stakeholders - ✔✔Internal stakeholders
work within the company, while external stakeholders interact with the company from
outside the organization.
✔✔ Society - ✔✔Refers to human beings and the social structures they collectively
create, including communities, nations, and interest groups.
✔✔General Systems Theory - ✔✔A theory that all organisms are open to and interact
with their external environments.
✔✔Interactive Social System - ✔✔The closely intertwined relationship between
business and society.
✔✔Shareholder Theory of the Firm - ✔✔A theory that the purpose of the firm is to
maximize its long-term market value (ownership theory).
✔✔Stakeholder Theory of the Firm - ✔✔A theory that the purpose of the firm is to create
value for society.
✔✔Civil Society - ✔✔Nonprofit, educational, religious, community, family, and interest-
group organizations that do not have a commercial or governmental purpose.
QUESTIONS SET A+
✔✔Difference Between Shareholder Theory and Stakeholder Theory - ✔✔Shareholder
theory focuses on maximizing long-term shareholder value, while stakeholder theory
focuses on creating value for society and all stakeholders.
✔✔Difference Between Market and Nonmarket Stakeholders - ✔✔Market stakeholders
engage in economic transactions with the company, while nonmarket stakeholders
influence or are affected by the company without direct economic exchange.
✔✔Difference Between Internal and External Stakeholders - ✔✔Internal stakeholders
work within the company, while external stakeholders interact with the company from
outside the organization.
✔✔ Society - ✔✔Refers to human beings and the social structures they collectively
create, including communities, nations, and interest groups.
✔✔General Systems Theory - ✔✔A theory that all organisms are open to and interact
with their external environments.
✔✔Interactive Social System - ✔✔The closely intertwined relationship between
business and society.
✔✔Shareholder Theory of the Firm - ✔✔A theory that the purpose of the firm is to
maximize its long-term market value (ownership theory).
✔✔Stakeholder Theory of the Firm - ✔✔A theory that the purpose of the firm is to create
value for society.
✔✔Civil Society - ✔✔Nonprofit, educational, religious, community, family, and interest-
group organizations that do not have a commercial or governmental purpose.
