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