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