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Chapter 02 Stakeholder Relationships Social Responsibility
and Coroporate Governance
MULTICHOICE
1. Those who have a claim in some aspect of a firm's products, operations, markets, industry, and
outcomes are known as
(A) shareholders.
(B) stockholders.
(C) stakeholders.
(D) claimholders.
(E) special-interest groups.
Answer : (C)
2. Stakeholders' power over businesses stems from their
(A) ability to withdraw or withhold resources.
(B) ability to generate profits.
(C) media impact.
(D) political influence.
(E) stock ownership.
Answer : (A)
3. Which of the following do not typically engage in transactions with a company and thus are not
essential for its survival?
(A) Employees
(B) Secondary stakeholders
(C) Primary stakeholders
(D) Investors
(E) Customers
Answer : (B)
4. A firm that makes use of a _____ recognizes other stakeholders beyond investors, employees, and
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,DOWNLOAD THE Test Bank for Business Ethics Ethical Decision Making
and Cases 11th Edition Ferrell
suppliers, and explicitly acknowledges the two-way dialog that exists between a firm's internal and
external environments.
(A) stakeholder model of corporate governance
(B) stakeholder bias
(C) code of ethics
(D) stakeholder interaction model
(E) corporate interface model
Answer : (D)
5. The degree to which a firm understands and addresses stakeholder demands can be referred to as
(A) a stakeholder orientation.
(B) a shareholder orientation.
(C) the stakeholder interaction model.
(D) a two-way street.
(E) a continuum.
Answer : (A)
6. Which of the following industries tends to generate a high level of trust from consumers and
stakeholders?
(A) Insurance
(B) Technology
(C) Banks
(D) Mortgage lenders
(E) Financial services
Answer : (B)
7. Why is it important for businesses to recognize secondary stakeholder groups?
(A) They are absolutely necessary for the firm's survival.
(B) They include the employees necessary for the firm's success.
(C) They usually have more power than primary stakeholders.
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, DOWNLOAD THE Test Bank for Business Ethics Ethical Decision Making
and Cases 11th Edition Ferrell
(D) They provide vital resources that companies need.
(E) They have legitimacy and can exert power.
Answer : (E)
8. A stakeholder group that is absolutely necessary for a firm's survival is defined as
(A) direct.
(B) tertiary.
(C) secondary.
(D) special-interest.
(E) primary.
Answer : (E)
9. When unethical acts are discovered in a firm, in most instances
(A) they are caused by unwilling participants.
(B) the cause is due to external stakeholders.
(C) the perpetrators are caught and prosecuted.
(D) there was knowing cooperation or complicity from within the company.
(E) the cause is a corrupt Board of Directors.
Answer : (D)
10. The normative approach ______________________.
(A) focuses on the actual behavior of the firm and usually addresses how decisions and strategies are
made for stakeholder relationships
(B) describes what happens if firms behave in a particular way
(C) is the degree to which a firm understands and addresses stakeholder demands
(D) describes reciprocal relationships between the firm and a host of stakeholders
(E) identifies guidelines that dictate how firms should treat stakeholders
Answer : (E)
11. A stakeholder orientation can be viewed as a(n)
mynursytest.store
and Cases 11th Edition Ferrell
Chapter 02 Stakeholder Relationships Social Responsibility
and Coroporate Governance
MULTICHOICE
1. Those who have a claim in some aspect of a firm's products, operations, markets, industry, and
outcomes are known as
(A) shareholders.
(B) stockholders.
(C) stakeholders.
(D) claimholders.
(E) special-interest groups.
Answer : (C)
2. Stakeholders' power over businesses stems from their
(A) ability to withdraw or withhold resources.
(B) ability to generate profits.
(C) media impact.
(D) political influence.
(E) stock ownership.
Answer : (A)
3. Which of the following do not typically engage in transactions with a company and thus are not
essential for its survival?
(A) Employees
(B) Secondary stakeholders
(C) Primary stakeholders
(D) Investors
(E) Customers
Answer : (B)
4. A firm that makes use of a _____ recognizes other stakeholders beyond investors, employees, and
mynursytest.store
,DOWNLOAD THE Test Bank for Business Ethics Ethical Decision Making
and Cases 11th Edition Ferrell
suppliers, and explicitly acknowledges the two-way dialog that exists between a firm's internal and
external environments.
(A) stakeholder model of corporate governance
(B) stakeholder bias
(C) code of ethics
(D) stakeholder interaction model
(E) corporate interface model
Answer : (D)
5. The degree to which a firm understands and addresses stakeholder demands can be referred to as
(A) a stakeholder orientation.
(B) a shareholder orientation.
(C) the stakeholder interaction model.
(D) a two-way street.
(E) a continuum.
Answer : (A)
6. Which of the following industries tends to generate a high level of trust from consumers and
stakeholders?
(A) Insurance
(B) Technology
(C) Banks
(D) Mortgage lenders
(E) Financial services
Answer : (B)
7. Why is it important for businesses to recognize secondary stakeholder groups?
(A) They are absolutely necessary for the firm's survival.
(B) They include the employees necessary for the firm's success.
(C) They usually have more power than primary stakeholders.
mynursytest.store
, DOWNLOAD THE Test Bank for Business Ethics Ethical Decision Making
and Cases 11th Edition Ferrell
(D) They provide vital resources that companies need.
(E) They have legitimacy and can exert power.
Answer : (E)
8. A stakeholder group that is absolutely necessary for a firm's survival is defined as
(A) direct.
(B) tertiary.
(C) secondary.
(D) special-interest.
(E) primary.
Answer : (E)
9. When unethical acts are discovered in a firm, in most instances
(A) they are caused by unwilling participants.
(B) the cause is due to external stakeholders.
(C) the perpetrators are caught and prosecuted.
(D) there was knowing cooperation or complicity from within the company.
(E) the cause is a corrupt Board of Directors.
Answer : (D)
10. The normative approach ______________________.
(A) focuses on the actual behavior of the firm and usually addresses how decisions and strategies are
made for stakeholder relationships
(B) describes what happens if firms behave in a particular way
(C) is the degree to which a firm understands and addresses stakeholder demands
(D) describes reciprocal relationships between the firm and a host of stakeholders
(E) identifies guidelines that dictate how firms should treat stakeholders
Answer : (E)
11. A stakeholder orientation can be viewed as a(n)
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