BUS 100 Midterm Exam with Answers
Boundary-spanning departments - ✔✔departments or offices within an organization that reach
across the dividing line that separates the company from groups and people in society
Business - ✔✔An organization that is engaged in making a product or providing a service for
profit
External Stakeholders - ✔✔Individuals or groups that make important transactions with a firm
but are not directly employed by the firm, such as customers or suppliers.
Focal Organization - ✔✔The organization from whose perspective a stakeholder analysis is
conducted
General systems Theory - ✔✔A theory that holds that all organisms are open to, and interact
with, their external environments. (Businesses change and adapt with society)
interactive social system - ✔✔the closely intertwined relationships between business and
society ( businesses and society influence and need each other)
Internal Stakeholders - ✔✔Individuals who are employed by the firm, such as employees and
managers.
Ownership (shareholder) Theory of the firm - ✔✔A theory that holds that the purpose of the
firm is to maximize the long-term return for its shareholders.
Society - ✔✔Refers to human beings and to the social structures they collectively create such as
members of a particular community, nation, or interest group.
,Stakeholder - ✔✔A person or organization which affects or is affected by a corporation's
decisions
Stake Holder Analysis - ✔✔Analytical process used by managers to assess the relevant
stakeholders, their interests, power, and possible coalitions.
Stakeholder coalitions - ✔✔alliances among a company's stakeholders to pursue a common
interest
Stakeholder interests - ✔✔the nature of each stakeholder group, its concerns, and what it
wants from its relationship with the firm
Market Stakeholder - ✔✔A stakeholder in which engages in direct economic transactions with a
company
Non-Market Stakeholder - ✔✔A stakeholder in which does NOT engage in direct economic
transactions, but still can affect or is affected by a company.
Stakeholder Map - ✔✔a graphical representation of the relationship of stakeholder salience to
a particular issue ( Influence/Interest)
Stakeholder Power - ✔✔the ability to use resources to make an event happen or to secure a
desired outcome.
Voting, Economical, Legal, political, Informational
stakeholder salience - ✔✔A stakeholder's ability to stand out from the background, to be seen
as important, or to draw attention to itself or its issue. Stakeholders are more salient when they
possess power, legitimacy and urgency.
, Stakeholder Theory Of the Firm - ✔✔A theory that holds that the purpose of the firm is to
create value for society.
Chap 1 Summary - ✔✔Business firms are organizations that are engaged in making a product or
providing a service for a profit. Society, in its broadest sense, refers to human beings and to the
social structures they collectively create. Business is part of society and engages in ongoing
exchanges with its external environment. Together, business and society form an interactive
social system in which the actions of each profoundly influence the other.
According to the stakeholder theory of the firm, the purpose of the modern corporation is to
create value for all of its stakeholders. To survive, all companies must make a profit for their
owners. However, they also create many other kinds of value as well for their employees,
customers, suppliers, communities, and others. For both practical and ethical reasons,
corporations must take all stakeholders' interests into account.
Every business firm has economic and social relationships with others in society. Some are
intended, some unintended; some are positive, others negative. Stakeholders are all those who
affect, or are affected by, the actions of the firm. Some have a market relationship with the
company, and others have a nonmarket relationship with it; some stakeholders are internal,
and others are external.
Stakeholders often have multiple interests and can exercise their economic, political, and other
powers in ways that benefit or challenge the organization. Stakeholders may also act
independently or create coalitions to influence the company. Stakeholder mapping is a
technique for graphically representing stakeholders' relationship to an issue facing a firm.
Modern corporations have developed a range of boundary-crossing departments and offices to
manage interactions with market and nonmarket stakeholders. The organization of the
corporation's boundary-spanning functions is comp
UBER CASE - ✔✔Uber drive KO a family, and injure others. Uber Distanced itself, bill passed to
make insurance cover when app is opened, taxi driver and insurance like, other comapnies no
like.
Boundary-spanning departments - ✔✔departments or offices within an organization that reach
across the dividing line that separates the company from groups and people in society
Business - ✔✔An organization that is engaged in making a product or providing a service for
profit
External Stakeholders - ✔✔Individuals or groups that make important transactions with a firm
but are not directly employed by the firm, such as customers or suppliers.
Focal Organization - ✔✔The organization from whose perspective a stakeholder analysis is
conducted
General systems Theory - ✔✔A theory that holds that all organisms are open to, and interact
with, their external environments. (Businesses change and adapt with society)
interactive social system - ✔✔the closely intertwined relationships between business and
society ( businesses and society influence and need each other)
Internal Stakeholders - ✔✔Individuals who are employed by the firm, such as employees and
managers.
Ownership (shareholder) Theory of the firm - ✔✔A theory that holds that the purpose of the
firm is to maximize the long-term return for its shareholders.
Society - ✔✔Refers to human beings and to the social structures they collectively create such as
members of a particular community, nation, or interest group.
,Stakeholder - ✔✔A person or organization which affects or is affected by a corporation's
decisions
Stake Holder Analysis - ✔✔Analytical process used by managers to assess the relevant
stakeholders, their interests, power, and possible coalitions.
Stakeholder coalitions - ✔✔alliances among a company's stakeholders to pursue a common
interest
Stakeholder interests - ✔✔the nature of each stakeholder group, its concerns, and what it
wants from its relationship with the firm
Market Stakeholder - ✔✔A stakeholder in which engages in direct economic transactions with a
company
Non-Market Stakeholder - ✔✔A stakeholder in which does NOT engage in direct economic
transactions, but still can affect or is affected by a company.
Stakeholder Map - ✔✔a graphical representation of the relationship of stakeholder salience to
a particular issue ( Influence/Interest)
Stakeholder Power - ✔✔the ability to use resources to make an event happen or to secure a
desired outcome.
Voting, Economical, Legal, political, Informational
stakeholder salience - ✔✔A stakeholder's ability to stand out from the background, to be seen
as important, or to draw attention to itself or its issue. Stakeholders are more salient when they
possess power, legitimacy and urgency.
, Stakeholder Theory Of the Firm - ✔✔A theory that holds that the purpose of the firm is to
create value for society.
Chap 1 Summary - ✔✔Business firms are organizations that are engaged in making a product or
providing a service for a profit. Society, in its broadest sense, refers to human beings and to the
social structures they collectively create. Business is part of society and engages in ongoing
exchanges with its external environment. Together, business and society form an interactive
social system in which the actions of each profoundly influence the other.
According to the stakeholder theory of the firm, the purpose of the modern corporation is to
create value for all of its stakeholders. To survive, all companies must make a profit for their
owners. However, they also create many other kinds of value as well for their employees,
customers, suppliers, communities, and others. For both practical and ethical reasons,
corporations must take all stakeholders' interests into account.
Every business firm has economic and social relationships with others in society. Some are
intended, some unintended; some are positive, others negative. Stakeholders are all those who
affect, or are affected by, the actions of the firm. Some have a market relationship with the
company, and others have a nonmarket relationship with it; some stakeholders are internal,
and others are external.
Stakeholders often have multiple interests and can exercise their economic, political, and other
powers in ways that benefit or challenge the organization. Stakeholders may also act
independently or create coalitions to influence the company. Stakeholder mapping is a
technique for graphically representing stakeholders' relationship to an issue facing a firm.
Modern corporations have developed a range of boundary-crossing departments and offices to
manage interactions with market and nonmarket stakeholders. The organization of the
corporation's boundary-spanning functions is comp
UBER CASE - ✔✔Uber drive KO a family, and injure others. Uber Distanced itself, bill passed to
make insurance cover when app is opened, taxi driver and insurance like, other comapnies no
like.
