Complete Test Bank
Business and Society: Stakeholders Ethics
Public Policy
17TH Edition
by Anne Lawrence (Author), James Weber
All Chapters| Latest
1|P a g
M! M! M! M! M!
e
, Chapter 1- M!
19 Answers are at the end of Each chapter Chapter 1
M! M! M! M! M! M! M! M! M! M!
TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false.
M! M! M! M! M! M! M! M! M! M! M! M! M! M! M!
1) A business is any organization that is engaged in making a product or providing a service for a profit.
M! M! M! M! M! M! M! M! M! M! M! M! M! M! M! M! M! M!
⊚ trueM!
⊚ false
M!
2) The term stakeholder refers exclusively to the founders of a business organization.
M! M! M! M! M! M! M! M! M! M! M!
⊚ trueM!
⊚ false
M!
3) Businesses and society are independent of each other.
M! M! M! M! M! M! M!
⊚ trueM!
⊚ false
M!
4) The stakeholder theory of the firm argues that a firm‘s sole purpose is to create long-
M! M! M! M! M! M! M! M! M! M! M! M! M! M! M!
term value for its shareholders.
M! M! M! M!
⊚ trueM!
⊚ false
M!
5) The instrumental argument for the stakeholder theory of the firm says that companies perform bette
M! M! M! M! M! M! M! M! M! M! M! M! M! M!
r if they consider the rights and concerns of multiple groups in society.
M! M! M! M! M! M! M! M! M! M! M! M!
⊚ trueM!
⊚ false
M!
6) The normative argument for the stakeholder theory of the firm says that the stakeholder view is simpl
M! M! M! M! M! M! M! M! M! M! M! M! M! M! M! M!
y a more realistic description of how companies really work.
M! M! M! M! M! M! M! M! M!
⊚ trueM!
⊚ false
M!
2|P a g
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e
,7) Nonmarket stakeholders are those that engage in economic transactions with the company as it carrie
M! M! M! M! M! M! M! M! M! M! M! M! M! M!
s out its primary purpose of providing society with goods and services.
M! M! M! M! M! M! M! M! M! M! M!
⊚ true
M!
⊚ false
M!
8) Market stakeholders include nongovernmental organizations and business support groups.
M! M! M! M! M! M! M! M!
⊚ true
M!
⊚ false
M!
9) Government can be considered both a market and a nonmarket stakeholder.
M! M! M! M! M! M! M! M! M! M!
⊚ true
M!
⊚ false
M!
10) The interests of different stakeholders often coincide.
M! M! M! M! M! M!
⊚ true
M!
⊚ false
M!
11) The first step of stakeholder analysis is to identify relevant stakeholders.
M! M! M! M! M! M! M! M! M! M!
⊚ true
M!
⊚ false
M!
12) Some scholars have suggested that managers pay the most attention to stakeholders possessing the least salien
M! M! M! M! M! M! M! M! M! M! M! M! M! M! M!
ce.
⊚ true
M!
⊚ false
M!
13) The organization of a corporation‘s boundary-spanning functions is complex.
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⊚ true
M!
⊚ false
M!
3|P a g
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e
, 14) Businesses are increasingly trying to meet their commitments to multiple stakeholders.
M! M! M! M! M! M! M! M! M! M!
⊚ true
M!
⊚ false
M!
15) The external environment of business is static.
M! M! M! M! M! M!
⊚ true
M!
⊚ false
M!
MULTIPLE CHOICE - M! M!
Choose the one alternative that best completes the state
M! M! M! M! M! M! M! M! M!
ment or answers the question.
M! M! M! M!
16) The relationship between business and society is most accurately described by which statement?
M! M! M! M! M! M! M! M! M! M! M! M!
A) Business is an unbounded entity within the larger bounded entity of society.
M! M! M! M! M! M! M! M! M! M! M!
B) Society is a distinct bounded entity within the larger bounded entity of business.
M! M! M! M! M! M! M! M! M! M! M! M!
C) Business is a distinct bounded entity separate from the bounded entity of society.
M! M! M! M! M! M! M! M! M! M! M! M!
D) Business is a distinct bounded entity within the larger bounded entity of society.
M! M! M! M! M! M! M! M! M! M! M! M!
17) According to general systems theory, boundary exchanges are exemplified by which of the following?
M! M! M! M! M! M! M! M! M! M! M! M! M!
A) An industrial company installs new equipment in its plant to comply with environmental regulations.
M! M! M! M! M! M! M! M! M! M! M! M! M!
B) A software company develops an application for a client.
M! M! M! M! M! M! M! M!
C) A purchasing department employee negotiates a price on parts with a supplier.
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D) All of these choices are correct.
M! M! M! M! M!
18) The inseparable relationship between business and society results in which of the following?
M! M! M! M! M! M! M! M! M! M! M! M!
A) All business decisions have a social impact.
M! M! M! M! M! M!
B) The vitality of business depends on society's actions and attitudes.
M! M! M! M! M! M! M! M! M!
C) The survival of business is independent of society.
M! M! M! M! M! M! M!
D) Both ―All business decisions have a social impact‖ and ―The vitality of business depends on society‘s acti
M! M! M! M! M! M! M! M! M! M! M! M! M! M! M! M!
ons and attitudes‖ are correct.
M! M! M! M!
4|P a g
M! M! M! M! M!
e
Business and Society: Stakeholders Ethics
Public Policy
17TH Edition
by Anne Lawrence (Author), James Weber
All Chapters| Latest
1|P a g
M! M! M! M! M!
e
, Chapter 1- M!
19 Answers are at the end of Each chapter Chapter 1
M! M! M! M! M! M! M! M! M! M!
TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false.
M! M! M! M! M! M! M! M! M! M! M! M! M! M! M!
1) A business is any organization that is engaged in making a product or providing a service for a profit.
M! M! M! M! M! M! M! M! M! M! M! M! M! M! M! M! M! M!
⊚ trueM!
⊚ false
M!
2) The term stakeholder refers exclusively to the founders of a business organization.
M! M! M! M! M! M! M! M! M! M! M!
⊚ trueM!
⊚ false
M!
3) Businesses and society are independent of each other.
M! M! M! M! M! M! M!
⊚ trueM!
⊚ false
M!
4) The stakeholder theory of the firm argues that a firm‘s sole purpose is to create long-
M! M! M! M! M! M! M! M! M! M! M! M! M! M! M!
term value for its shareholders.
M! M! M! M!
⊚ trueM!
⊚ false
M!
5) The instrumental argument for the stakeholder theory of the firm says that companies perform bette
M! M! M! M! M! M! M! M! M! M! M! M! M! M!
r if they consider the rights and concerns of multiple groups in society.
M! M! M! M! M! M! M! M! M! M! M! M!
⊚ trueM!
⊚ false
M!
6) The normative argument for the stakeholder theory of the firm says that the stakeholder view is simpl
M! M! M! M! M! M! M! M! M! M! M! M! M! M! M! M!
y a more realistic description of how companies really work.
M! M! M! M! M! M! M! M! M!
⊚ trueM!
⊚ false
M!
2|P a g
M! M! M! M! M!
e
,7) Nonmarket stakeholders are those that engage in economic transactions with the company as it carrie
M! M! M! M! M! M! M! M! M! M! M! M! M! M!
s out its primary purpose of providing society with goods and services.
M! M! M! M! M! M! M! M! M! M! M!
⊚ true
M!
⊚ false
M!
8) Market stakeholders include nongovernmental organizations and business support groups.
M! M! M! M! M! M! M! M!
⊚ true
M!
⊚ false
M!
9) Government can be considered both a market and a nonmarket stakeholder.
M! M! M! M! M! M! M! M! M! M!
⊚ true
M!
⊚ false
M!
10) The interests of different stakeholders often coincide.
M! M! M! M! M! M!
⊚ true
M!
⊚ false
M!
11) The first step of stakeholder analysis is to identify relevant stakeholders.
M! M! M! M! M! M! M! M! M! M!
⊚ true
M!
⊚ false
M!
12) Some scholars have suggested that managers pay the most attention to stakeholders possessing the least salien
M! M! M! M! M! M! M! M! M! M! M! M! M! M! M!
ce.
⊚ true
M!
⊚ false
M!
13) The organization of a corporation‘s boundary-spanning functions is complex.
M! M! M! M! M! M! M! M!
⊚ true
M!
⊚ false
M!
3|P a g
M! M! M! M! M!
e
, 14) Businesses are increasingly trying to meet their commitments to multiple stakeholders.
M! M! M! M! M! M! M! M! M! M!
⊚ true
M!
⊚ false
M!
15) The external environment of business is static.
M! M! M! M! M! M!
⊚ true
M!
⊚ false
M!
MULTIPLE CHOICE - M! M!
Choose the one alternative that best completes the state
M! M! M! M! M! M! M! M! M!
ment or answers the question.
M! M! M! M!
16) The relationship between business and society is most accurately described by which statement?
M! M! M! M! M! M! M! M! M! M! M! M!
A) Business is an unbounded entity within the larger bounded entity of society.
M! M! M! M! M! M! M! M! M! M! M!
B) Society is a distinct bounded entity within the larger bounded entity of business.
M! M! M! M! M! M! M! M! M! M! M! M!
C) Business is a distinct bounded entity separate from the bounded entity of society.
M! M! M! M! M! M! M! M! M! M! M! M!
D) Business is a distinct bounded entity within the larger bounded entity of society.
M! M! M! M! M! M! M! M! M! M! M! M!
17) According to general systems theory, boundary exchanges are exemplified by which of the following?
M! M! M! M! M! M! M! M! M! M! M! M! M!
A) An industrial company installs new equipment in its plant to comply with environmental regulations.
M! M! M! M! M! M! M! M! M! M! M! M! M!
B) A software company develops an application for a client.
M! M! M! M! M! M! M! M!
C) A purchasing department employee negotiates a price on parts with a supplier.
M! M! M! M! M! M! M! M! M! M! M!
D) All of these choices are correct.
M! M! M! M! M!
18) The inseparable relationship between business and society results in which of the following?
M! M! M! M! M! M! M! M! M! M! M! M!
A) All business decisions have a social impact.
M! M! M! M! M! M!
B) The vitality of business depends on society's actions and attitudes.
M! M! M! M! M! M! M! M! M!
C) The survival of business is independent of society.
M! M! M! M! M! M! M!
D) Both ―All business decisions have a social impact‖ and ―The vitality of business depends on society‘s acti
M! M! M! M! M! M! M! M! M! M! M! M! M! M! M! M!
ons and attitudes‖ are correct.
M! M! M! M!
4|P a g
M! M! M! M! M!
e
