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