BUS 100 Midterm Exam with Answers
Which statement is not correct about the business-society interdependence?
A) Business is a part of society.
B) Business is separated from the rest of society by clear boundaries.
C) Business activities impact other activities in society.Actions by governments rarely affect
business.
D) Actions by governments rarely affect business. - ✔✔D) Actions by government rarely
significantly affect business
Which of the following is the result of an inseparable relationship between business and
society?
A) All business decisions have a social impact.
B) The vitality of business depends on society's actions and attitudes.
C) The survival of business is independent of society.
D) Both A and B, but not C. - ✔✔D) Both A and B, but not C.
A firm subscribing to the shareholder theory of the firm would mainly be concerned with
providing value for its
,A) Investors.
B) Customers.
C) Board of Directors.
D) Community. - ✔✔A) Investors.
Corporations that run their operations according to the stakeholder theory of the firm create
value by
A) Innovating new products.
B) Increasing their stock price.
C) Developing their employees' professional skills.
D) All of the above. - ✔✔D) All of the above.
Which one of the following is considered to be a nonmarket stakeholder of business?
A) Customers.
B) Nongovernmental organizations.
C) Creditors.
, D) Shareholders. - ✔✔B) Nongovernmental organizations.
Stakeholder groups can include
A) Stockholders.
B) The media.
C) Environmental activists.
D) All of the above. - ✔✔D) All of the above.
All of the following are external stakeholders of the firm except
A) Managers.
B) Customers.
C) Stockholders.
D) Suppliers. - ✔✔A) Managers.
A stakeholder analysis
A) Creates equality among all stakeholder interests
B) Allows managers to examine two primary questions
Which statement is not correct about the business-society interdependence?
A) Business is a part of society.
B) Business is separated from the rest of society by clear boundaries.
C) Business activities impact other activities in society.Actions by governments rarely affect
business.
D) Actions by governments rarely affect business. - ✔✔D) Actions by government rarely
significantly affect business
Which of the following is the result of an inseparable relationship between business and
society?
A) All business decisions have a social impact.
B) The vitality of business depends on society's actions and attitudes.
C) The survival of business is independent of society.
D) Both A and B, but not C. - ✔✔D) Both A and B, but not C.
A firm subscribing to the shareholder theory of the firm would mainly be concerned with
providing value for its
,A) Investors.
B) Customers.
C) Board of Directors.
D) Community. - ✔✔A) Investors.
Corporations that run their operations according to the stakeholder theory of the firm create
value by
A) Innovating new products.
B) Increasing their stock price.
C) Developing their employees' professional skills.
D) All of the above. - ✔✔D) All of the above.
Which one of the following is considered to be a nonmarket stakeholder of business?
A) Customers.
B) Nongovernmental organizations.
C) Creditors.
, D) Shareholders. - ✔✔B) Nongovernmental organizations.
Stakeholder groups can include
A) Stockholders.
B) The media.
C) Environmental activists.
D) All of the above. - ✔✔D) All of the above.
All of the following are external stakeholders of the firm except
A) Managers.
B) Customers.
C) Stockholders.
D) Suppliers. - ✔✔A) Managers.
A stakeholder analysis
A) Creates equality among all stakeholder interests
B) Allows managers to examine two primary questions
