MGMT 4th Canadian Edition By Chuck Williams, Terri Champion, Ike Hall (Test Bank)2.pdf

Chapter 1 Key h h




1. Walmarthhashbeenhcalledhah"templatehforh21sthcenturyhcapitalism."
(p.h 3)

FALSE
Lawrenceh-hChapterh01h#1

2. Ahbusinesshishanyhorganizationhthathishengagedhinhmakinghahproducthorhprovidinghahser
(p.h 4) vicehforhahprofit.

TRUE
Lawrenceh-hChapterh01h#2

3. Businessesh andh societyh areh independenth ofh oneh another.
(p.h 4)

FALSE
Lawrenceh-hChapterh01h#3

4. Thehstakeholderhtheoryhofhthehfirmhargueshthathahfirm'shsolehpurposehishtohcreatehvalu
(p.h 6) ehforhitshshareholders.

FALSE
Lawrenceh-hChapterh01h#4

5. Thehinstrumentalhargumenthforhthehstakeholderhtheoryhofhthehfirmhsayshthathcompan
(p.h 6) ieshperformhbetterhifhtheyhconsiderhthehrightshandhconcernshofhmultiplehgroupshinhsoci
ety.

TRUE
Lawrenceh-hChapterh01h#5

6. Thehnormativehargumenthforhthehstakeholderhtheoryhofhthehfirmhsayshthaththehstakehol
(p.h 7) derhviewhishsimplyhahmorehrealistichdescriptionhofhhowhcompanieshreallyhwork.

FALSE
Lawrenceh-hChapterh01h#6

7. Nonmarkethstakeholdersharehthosehthathengagehinheconomichtransactionshwithhthehco
(p.h 8) mpanyhashithcarrieshouthitshprimaryhpurposehofhprovidinghsocietyhwithhgoodshandhservi
ces.

FALSE
Lawrenceh-hChapterh01h#7

,8. Marketh stakeholdersh includeh nongovernmentalh organizationsh andh theh media.
(p.h 8)

FALSE
Lawrenceh-hChapterh01h#8

9. Governmenth canh beh consideredh bothh ah marketh andh nonmarketh stakeholder.
(p.h10)

TRUE
Lawrenceh-hChapterh01h#9

10. Thehinterestshofhdifferenthstakeholdershoftenhcoincide.
(p.h14)

TRUE
Lawrenceh-hChapterh01h#10

11. Stakeholdershinvolvedhwithhonehparthofhahcompanyhoftenhmayhhavehlittlehorhnohinvolve
(p.h15) menthwithhanotherhparthofhthehcompany.

TRUE
Lawrenceh-hChapterh01h#11

12. Somehscholarshhavehsuggestedhthathmanagershpayhthehmosthattentionhtohstakeholder
(p.h16) shpossessinghthehleasthsalience.

FALSE
Lawrenceh-hChapterh01h#12

13. Urgencyhrefershtohthehextenthtohwhichhahstakeholder'shactionsharehseenhashproperhorhap
(p.h16) propriatehbyhthehbroaderhsociety.

FALSE
Lawrenceh-hChapterh01h#13

14. Ahstakeholderhmaphishahusefulhtool,hbecausehithenableshmanagershtohseehquicklyh howh
(p.h17) stakeholdershfeelhabouthanhissuehandhwhetherhsalienthstakeholdershtendhtohbehinhfavo
rhorhopposed.

TRUE
Lawrenceh-hChapterh01h#14

15. Theh externalh environmenth ofh businessh ish static.
(p.h19)

FALSE
Lawrenceh-hChapterh01h#15

,16. Whichhstatementhish noth correcthabouth thehbusiness-societyh interdependence?
(p.h 5)


A. Businesshishahparthofh
society.
B. Businesshishseparatedhfromhthehresthofhsocietyhbyhclearhb
oundaries.
C. Businesshactivitieshimpacthotherhactivitieshinhs
ociety.
D. Actionshbyhgovernmentshrarelyhsignificantlyhaffecth
business.
Difficulty:h 2h Medium
Lawrenceh-hChapterh01h#16

17. Whichhofhthehfollowinghexampleshbesthillustrateshthehboundaryhexchangeshahcompany
(p.h 5) hwouldhencounter haccording htoh thehgeneralhsystemsh theory?




A. Anhindustrialhcompanyhinstallshnewhequipmenthinhitshplanthtohcomplyhwithhe
nvironmentalhregulations.
B. Ahsoftwarehcompanyhdevelopshanhapplicationhforha
hclient.


C. Ahpurchasinghdepartmenthemployeehnegotiateshahpricehonhpartshfromhah
supplier.
D. Allhofhthe
habove.



Difficulty:h 3h Hard
Lawrenceh-hChapterh01h#17

18. Whichhofhthehfollowinghishthehresulthofhanhinseparablehrelationshiphbetweenhbusinessh
(p.h 5) andhsociety?


A. Allhbusinesshdecisionshhavehahsocialhi
mpact.
B. Thehvitalityhofhbusinesshdependshonhsociety'shactionshandhat
titudes.
C. Thehsurvivalhofhbusinesshishindependenthofhs
ociety.
D. BothhAhandhB,hbuthnoth
C.
Difficulty:h 2h Medium
Lawrenceh-hChapterh01h#18

, 19. Whichhofhthehfollowinghstatementshishnothtruehabouththehinteractivehsocialhsystem?
(p.h 5)


A. Businesshandhsocietyhneed,hashwellhashinfluence,he
achhother.
B. Thehboundaryhbetweenhbusinesshandhsocietyhishclearhandh
distinct.
C. Businesshishahparthofhsociety,handhsocietyhpenetrateshfarhandhoftenhintohth
ehbusiness.
D. Businesshandhsocietyharehbothhseparatehandhc
onnected.
Difficulty:h 3h Hard
Lawrenceh-hChapterh01h#19

20. Ahfirmhsubscribinghtohthehownershiphtheoryhofhthehfirmhwouldhmainlyhbehconcernedhwit
(p.h 6) hhprovidinghvaluehforhits:


A. Shareholderh
s.
B. Customerh
s.
C. Boardhofh
Directors.
D. Communith
y.
Difficulty:h 2h Medium
Lawrenceh-hChapterh01h#20

21. Corporationshthathrunhtheirhoperationshaccordinghtohthehstakeholderhtheoryhofhthehfirmh
(p.h 6) createhvaluehby:


A. Innovatinghnewh
products.
B. Increasinghtheirhstockh
price.
C. Developinghtheirhemployees'hprofessionalhs
kills.
D. Allhofhthe
habove.



Difficulty:h 2h Medium
Lawrenceh-hChapterh01h#21