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Business and Society Stakeholders Ethics Public Policy 17th Edition By Anne
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Lawrence
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Chapter 1-19 Answers are at the end o f Each chapterChapter
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Student name: ewt ewt
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
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fora profit.
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⊚ true e w t
⊚ false e w t
2) The term stakeholder refers exclusively to the founders of a business organization.
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⊚ true e w t
⊚ false e w t
3) Businesses and society are independent of each other. ewt ewt ewt ewt ewt ewt ewt
⊚ true e w t
⊚ false e w t
4) The stakeholder theory of the firm argues that a firm’s sole purpose is to create long-
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termvalue for its shareholders.
t
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⊚ true e w t
⊚ false e w t
5) The instrumental argument for the stakeholder theory of the firm says that
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companiesperform better if they consider the rights and concerns of multiple groups
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in society.
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⊚ true e w t
⊚ false e w t
6) The normative argument for the stakeholder theory of the firm says that the stakeholder
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viewis simply a more realistic description of how companies really work.
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⊚ true e w t
⊚ false e w t
,7) Nonmarket stakeholders are those that engage in economic transactions with the company
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asit carries out its primary purpose of providing society with goods and services.
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⊚ true e w t
⊚ false e w t
8) Market stakeholders include nongovernmental organizations and business support groups.
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⊚ true e w t
⊚ false e w t
9) Government can be considered both a market and a nonmarket stakeholder.
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⊚ true e w t
⊚ false e w t
10) The interests of different stakeholders often coincide.
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⊚ true e w t
⊚ false e w t
11) The first step of stakeholder analysis is to identify relevant stakeholders.
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⊚ true e w t
⊚ false e w t
12) Some scholars have suggested that managers pay the most attention to
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ewt stakeholderspossessing the least salience. t
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⊚ true e w t
⊚ false e w t
13) The organization of a corporation’s boundary-spanning functions is complex.
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⊚ true e w t
⊚ false e w t
14) Businesses are increasingly trying to meet their commitments to multiple stakeholders.
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⊚ true e w t
⊚ false e w t
15) The external environment of business is static.
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⊚ true e w t
⊚ false e w t
,MULTIPLE CHOICE - Choose the one alternative that best completes the statement
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oranswers the question.
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16) The relationship between business and society is most accurately described by
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whichstatement?
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A) Business is an unbounded entity within the larger bounded entity of society. ewt ewt ewt ewt ewt ewt ewt ewt ewt ewt ewt
B) Society is a distinct bounded entity within the larger bounded entity of business. ewt ewt ewt ewt ewt ewt ewt ewt ewt ewt ewt ewt
C) Business is a distinct bounded entity separate from the bounded entity of society. ewt ewt ewt ewt ewt ewt ewt ewt ewt ewt ewt ewt
D) Business is a distinct bounded entity within the larger bounded entity of society. ewt ewt ewt ewt ewt ewt ewt ewt ewt ewt ewt ewt
17) According to general systems theory, boundary exchanges are exemplified by which of
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ewt thefollowing?
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A) An industrial company installs new equipment in its plant to comply
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withenvironmental 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. ewt ewt ewt ewt ewt
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. ewt ewt ewt ewt ewt ewt
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. ewt ewt ewt ewt ewt ewt ewt
D) Both “All business decisions have a social impact” and “The vitality of
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ewt businessdepends on society’s actions and attitudes” are correct.
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19) Which of the following statements is not true about the interactive social system?
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A) Business and society need, as well as influence, each other. ewt ewt ewt ewt ewt ewt ewt ewt ewt
B) The boundary between business and society is clear and distinct.ewt ewt ewt ewt ewt ewt ewt ewt ewt
C) Business is a part of society, and society penetrates far and often into business. ewt ewt ewt ewt ewt ewt ewt ewt ewt ewt ewt ewt ewt
D) Business and society are both separate and connected. ewt ewt ewt ewt ewt ewt ewt
20) A firm subscribing to the shareholder theory of the firm would mainly be concerned
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ewt withproviding long-term value for its
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A) investors.
B) customers.
C) board of Directors. ewt ewt
D) community.
, 21) Corporations that follow the stakeholder theory of the firm create value by
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A) constantly innovating new products. ewt ewt ewt
B) increasing their stock price. ewt ewt ewt
C) developing their employees’ skills. ewt ewt ewt
D) All of these choices are correct. ewt ewt ewt ewt ewt
22) Which argument says that stakeholder management realistically depicts how
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companiesreally work?
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A) descriptive argument ewt
B) instrumental argument ewt
C) normative argument ewt
D) fiduciary argument ewt
23) The instrumental argument states that stakeholder management
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is ewt
A) a more realistic description of how companies really work.
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B) more effective as a corporate strategy.
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C) simply the right thing to do. ewt ewt ewt ewt ewt
D) determined by the amount of stock issued. ewt ewt ewt ewt ewt ewt
24) The fiduciary duty of managers benefits a firm's
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A) shareholders.
B) customers.
C) employees.
D) All of these choices are correct. ewt ewt ewt ewt ewt
25) The main reason a number of European countries require public companies to
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includeemployee members on their boards of directors is that
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A) the employees will be available to answer other board members' questions.
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B) management will not have to attend the meetings. ewt ewt ewt ewt ewt ewt ewt
C) employees' interests will be explicitly represented. ewt ewt ewt ewt ewt
D) employees will have more power than any other stakeholder. ewt ewt ewt ewt ewt ewt ewt ewt
26) Stakeholder groups can include ewt ewt ewt
A) shareholders.
B) business support groups. ewt ewt
C) environmental activists. ewt
D) All of these choices are correct. ewt ewt ewt ewt ewt
Business and Society Stakeholders Ethics Public Policy 17th Edition By Anne
ewt ewt ewt ewt ewt ewt ewt ewt ewt ewt
Lawrence
t
ew
Chapter 1-19 Answers are at the end o f Each chapterChapter
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ew
ewt 1
Student name: ewt ewt
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
ewt ewt ewt ewt ewt ewt ewt ewt ewt ewt ewt ewt ewt ewt ewt
fora profit.
ewt t
ew ewt
⊚ true e w t
⊚ false e w t
2) The term stakeholder refers exclusively to the founders of a business organization.
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⊚ true e w t
⊚ false e w t
3) Businesses and society are independent of each other. ewt ewt ewt ewt ewt ewt ewt
⊚ true e w t
⊚ false e w t
4) The stakeholder theory of the firm argues that a firm’s sole purpose is to create long-
ewt ewt ewt ewt ewt ewt ewt ewt ewt ewt ewt ewt ewt ewt ewt
termvalue for its shareholders.
t
ew ewt ewt ewt
⊚ true e w t
⊚ false e w t
5) The instrumental argument for the stakeholder theory of the firm says that
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companiesperform better if they consider the rights and concerns of multiple groups
ewt t
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in society.
ewt ewt
⊚ true e w t
⊚ false e w t
6) The normative argument for the stakeholder theory of the firm says that the stakeholder
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viewis simply a more realistic description of how companies really work.
ewt t
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⊚ true e w t
⊚ false e w t
,7) Nonmarket stakeholders are those that engage in economic transactions with the company
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asit carries out its primary purpose of providing society with goods and services.
ewt t
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⊚ true e w t
⊚ false e w t
8) Market stakeholders include nongovernmental organizations and business support groups.
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⊚ true e w t
⊚ false e w t
9) Government can be considered both a market and a nonmarket stakeholder.
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⊚ true e w t
⊚ false e w t
10) The interests of different stakeholders often coincide.
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⊚ true e w t
⊚ false e w t
11) The first step of stakeholder analysis is to identify relevant stakeholders.
ewt ewt ewt ewt ewt ewt ewt ewt ewt ewt
⊚ true e w t
⊚ false e w t
12) Some scholars have suggested that managers pay the most attention to
ewt ewt ewt ewt ewt ewt ewt ewt ewt ewt
ewt stakeholderspossessing the least salience. t
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⊚ true e w t
⊚ false e w t
13) The organization of a corporation’s boundary-spanning functions is complex.
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⊚ true e w t
⊚ false e w t
14) Businesses are increasingly trying to meet their commitments to multiple stakeholders.
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⊚ true e w t
⊚ false e w t
15) The external environment of business is static.
ewt ewt ewt ewt ewt ewt
⊚ true e w t
⊚ false e w t
,MULTIPLE CHOICE - Choose the one alternative that best completes the statement
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oranswers the question.
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16) The relationship between business and society is most accurately described by
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whichstatement?
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A) Business is an unbounded entity within the larger bounded entity of society. ewt ewt ewt ewt ewt ewt ewt ewt ewt ewt ewt
B) Society is a distinct bounded entity within the larger bounded entity of business. ewt ewt ewt ewt ewt ewt ewt ewt ewt ewt ewt ewt
C) Business is a distinct bounded entity separate from the bounded entity of society. ewt ewt ewt ewt ewt ewt ewt ewt ewt ewt ewt ewt
D) Business is a distinct bounded entity within the larger bounded entity of society. ewt ewt ewt ewt ewt ewt ewt ewt ewt ewt ewt ewt
17) According to general systems theory, boundary exchanges are exemplified by which of
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ewt thefollowing?
t
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A) An industrial company installs new equipment in its plant to comply
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withenvironmental 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.
ewt ewt ewt ewt ewt ewt ewt ewt ewt ewt ewt
D) All of these choices are correct. ewt ewt ewt ewt ewt
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. ewt ewt ewt ewt ewt ewt
B) The vitality of business depends on society's actions and attitudes.
ewt ewt ewt ewt ewt ewt ewt ewt ewt
C) The survival of business is independent of society. ewt ewt ewt ewt ewt ewt ewt
D) Both “All business decisions have a social impact” and “The vitality of
ewt ewt ewt ewt ewt ewt ewt ewt ewt ewt ewt
ewt businessdepends on society’s actions and attitudes” are correct.
t
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19) Which of the following statements is not true about the interactive social system?
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A) Business and society need, as well as influence, each other. ewt ewt ewt ewt ewt ewt ewt ewt ewt
B) The boundary between business and society is clear and distinct.ewt ewt ewt ewt ewt ewt ewt ewt ewt
C) Business is a part of society, and society penetrates far and often into business. ewt ewt ewt ewt ewt ewt ewt ewt ewt ewt ewt ewt ewt
D) Business and society are both separate and connected. ewt ewt ewt ewt ewt ewt ewt
20) A firm subscribing to the shareholder theory of the firm would mainly be concerned
ewt ewt ewt ewt ewt ewt ewt ewt ewt ewt ewt ewt ewt
ewt withproviding long-term value for its
t
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A) investors.
B) customers.
C) board of Directors. ewt ewt
D) community.
, 21) Corporations that follow the stakeholder theory of the firm create value by
ewt ewt ewt ewt ewt ewt ewt ewt ewt ewt ewt
A) constantly innovating new products. ewt ewt ewt
B) increasing their stock price. ewt ewt ewt
C) developing their employees’ skills. ewt ewt ewt
D) All of these choices are correct. ewt ewt ewt ewt ewt
22) Which argument says that stakeholder management realistically depicts how
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companiesreally work?
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ew ewt
A) descriptive argument ewt
B) instrumental argument ewt
C) normative argument ewt
D) fiduciary argument ewt
23) The instrumental argument states that stakeholder management
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is ewt
A) a more realistic description of how companies really work.
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B) more effective as a corporate strategy.
ewt ewt ewt ewt ewt
C) simply the right thing to do. ewt ewt ewt ewt ewt
D) determined by the amount of stock issued. ewt ewt ewt ewt ewt ewt
24) The fiduciary duty of managers benefits a firm's
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A) shareholders.
B) customers.
C) employees.
D) All of these choices are correct. ewt ewt ewt ewt ewt
25) The main reason a number of European countries require public companies to
ewt ewt ewt ewt ewt ewt ewt ewt ewt ewt ewt
includeemployee members on their boards of directors is that
ewt t
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A) the employees will be available to answer other board members' questions.
ewt ewt ewt ewt ewt ewt ewt ewt ewt ewt
B) management will not have to attend the meetings. ewt ewt ewt ewt ewt ewt ewt
C) employees' interests will be explicitly represented. ewt ewt ewt ewt ewt
D) employees will have more power than any other stakeholder. ewt ewt ewt ewt ewt ewt ewt ewt
26) Stakeholder groups can include ewt ewt ewt
A) shareholders.
B) business support groups. ewt ewt
C) environmental activists. ewt
D) All of these choices are correct. ewt ewt ewt ewt ewt
