Complete Test Bank mj mj
Business and Society: Stakeholders Ethics Public
mj mj mj mj mj
Policy mj
17TH Edition mj
by Anne Lawrence (Author), James Weber
mj mj mj mj mj
All Chapters| Latest
mj mj
1|P a g
mj mj mj mj mj
e
, Chapter 1- mj
19 Answers are at the end of Each chapter Chapter 1
mj mj mj mj mj mj mj mj mj mj
TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false.
mj mj mj mj mj mj mj mj mj mj mj mj mj mj mj
1) A business is any organization that is engaged in making a product or providing a service for a profit.
mj mj mj mj mj mj mj mj mj mj mj mj mj mj mj mj mj mj
⊚ truemj
⊚ false
mj
2) The term stakeholder refers exclusively to the founders of a business organization.
mj mj mj mj mj mj mj mj mj mj mj
⊚ truemj
⊚ false
mj
3) Businesses and society are independent of each other.
mj mj mj mj mj mj mj
⊚ truemj
⊚ false
mj
4) The stakeholder theory of the firm argues that a firm‘s sole purpose is to create long-
mj mj mj mj mj mj mj mj mj mj mj mj mj mj mj
term value for its shareholders.
mj mj mj mj
⊚ truemj
⊚ false
mj
5) The instrumental argument for the stakeholder theory of the firm says that companies perform better i
mj mj mj mj mj mj mj mj mj mj mj mj mj mj mj
f they consider the rights and concerns of multiple groups in society.
mj mj mj mj mj mj mj mj mj mj mj
⊚ truemj
⊚ false
mj
6) The normative argument for the stakeholder theory of the firm says that the stakeholder view is simply
mj mj mj mj mj mj mj mj mj mj mj mj mj mj mj mj mj
a more realistic description of how companies really work.
mj mj mj mj mj mj mj mj
⊚ truemj
⊚ false
mj
2|P a g
mj mj mj mj mj
e
,7) Nonmarket stakeholders are those that engage in economic transactions with the company as it carries
mj mj mj mj mj mj mj mj mj mj mj mj mj mj mj
out its primary purpose of providing society with goods and services.
mj mj mj mj mj mj mj mj mj mj
⊚ true
mj
⊚ false
mj
8) Market stakeholders include nongovernmental organizations and business support groups.
mj mj mj mj mj mj mj mj
⊚ true
mj
⊚ false
mj
9) Government can be considered both a market and a nonmarket stakeholder.
mj mj mj mj mj mj mj mj mj mj
⊚ true
mj
⊚ false
mj
10) The interests of different stakeholders often coincide.
mj mj mj mj mj mj
⊚ true
mj
⊚ false
mj
11) The first step of stakeholder analysis is to identify relevant stakeholders.
mj mj mj mj mj mj mj mj mj mj
⊚ true
mj
⊚ false
mj
12) Some scholars have suggested that managers pay the most attention to stakeholders possessing the least salience.
mj mj mj mj mj mj mj mj mj mj mj mj mj mj mj
⊚ true
mj
⊚ false
mj
13) The organization of a corporation‘s boundary-spanning functions is complex.
mj mj mj mj mj mj mj mj
⊚ true
mj
⊚ false
mj
3|P a g
mj mj mj mj mj
e
, 14) Businesses are increasingly trying to meet their commitments to multiple stakeholders.
mj mj mj mj mj mj mj mj mj mj
⊚ true
mj
⊚ false
mj
15) The external environment of business is static.
mj mj mj mj mj mj
⊚ true
mj
⊚ false
mj
MULTIPLE CHOICE - mj mj
Choose the one alternative that best completes the state
mj mj mj mj mj mj mj mj mj
ment or answers the question.
mj mj mj mj
16) The relationship between business and society is most accurately described by which statement?
mj mj mj mj mj mj mj mj mj mj mj mj
A) Business is an unbounded entity within the larger bounded entity of society.
mj mj mj mj mj mj mj mj mj mj mj
B) Society is a distinct bounded entity within the larger bounded entity of business.
mj mj mj mj mj mj mj mj mj mj mj mj
C) Business is a distinct bounded entity separate from the bounded entity of society.
mj mj mj mj mj mj mj mj mj mj mj mj
D) Business is a distinct bounded entity within the larger bounded entity of society.
mj mj mj mj mj mj mj mj mj mj mj mj
17) According to general systems theory, boundary exchanges are exemplified by which of the following?
mj mj mj mj mj mj mj mj mj mj mj mj mj
A) An industrial company installs new equipment in its plant to comply with environmental regulations.
mj mj mj mj mj mj mj mj mj mj mj mj mj
B) A software company develops an application for a client.
mj mj mj mj mj mj mj mj
C) A purchasing department employee negotiates a price on parts with a supplier.
mj mj mj mj mj mj mj mj mj mj mj
D) All of these choices are correct.
mj mj mj mj mj
18) The inseparable relationship between business and society results in which of the following?
mj mj mj mj mj mj mj mj mj mj mj mj
A) All business decisions have a social impact.
mj mj mj mj mj mj
B) The vitality of business depends on society's actions and attitudes.
mj mj mj mj mj mj mj mj mj
C) The survival of business is independent of society.
mj mj mj mj mj mj mj
D) Both ―All business decisions have a social impact‖ and ―The vitality of business depends on society‘s action
mj mj mj mj mj mj mj mj mj mj mj mj mj mj mj mj
s and attitudes‖ are correct.
mj mj mj mj
4|P a g
mj mj mj mj mj
e
Business and Society: Stakeholders Ethics Public
mj mj mj mj mj
Policy mj
17TH Edition mj
by Anne Lawrence (Author), James Weber
mj mj mj mj mj
All Chapters| Latest
mj mj
1|P a g
mj mj mj mj mj
e
, Chapter 1- mj
19 Answers are at the end of Each chapter Chapter 1
mj mj mj mj mj mj mj mj mj mj
TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false.
mj mj mj mj mj mj mj mj mj mj mj mj mj mj mj
1) A business is any organization that is engaged in making a product or providing a service for a profit.
mj mj mj mj mj mj mj mj mj mj mj mj mj mj mj mj mj mj
⊚ truemj
⊚ false
mj
2) The term stakeholder refers exclusively to the founders of a business organization.
mj mj mj mj mj mj mj mj mj mj mj
⊚ truemj
⊚ false
mj
3) Businesses and society are independent of each other.
mj mj mj mj mj mj mj
⊚ truemj
⊚ false
mj
4) The stakeholder theory of the firm argues that a firm‘s sole purpose is to create long-
mj mj mj mj mj mj mj mj mj mj mj mj mj mj mj
term value for its shareholders.
mj mj mj mj
⊚ truemj
⊚ false
mj
5) The instrumental argument for the stakeholder theory of the firm says that companies perform better i
mj mj mj mj mj mj mj mj mj mj mj mj mj mj mj
f they consider the rights and concerns of multiple groups in society.
mj mj mj mj mj mj mj mj mj mj mj
⊚ truemj
⊚ false
mj
6) The normative argument for the stakeholder theory of the firm says that the stakeholder view is simply
mj mj mj mj mj mj mj mj mj mj mj mj mj mj mj mj mj
a more realistic description of how companies really work.
mj mj mj mj mj mj mj mj
⊚ truemj
⊚ false
mj
2|P a g
mj mj mj mj mj
e
,7) Nonmarket stakeholders are those that engage in economic transactions with the company as it carries
mj mj mj mj mj mj mj mj mj mj mj mj mj mj mj
out its primary purpose of providing society with goods and services.
mj mj mj mj mj mj mj mj mj mj
⊚ true
mj
⊚ false
mj
8) Market stakeholders include nongovernmental organizations and business support groups.
mj mj mj mj mj mj mj mj
⊚ true
mj
⊚ false
mj
9) Government can be considered both a market and a nonmarket stakeholder.
mj mj mj mj mj mj mj mj mj mj
⊚ true
mj
⊚ false
mj
10) The interests of different stakeholders often coincide.
mj mj mj mj mj mj
⊚ true
mj
⊚ false
mj
11) The first step of stakeholder analysis is to identify relevant stakeholders.
mj mj mj mj mj mj mj mj mj mj
⊚ true
mj
⊚ false
mj
12) Some scholars have suggested that managers pay the most attention to stakeholders possessing the least salience.
mj mj mj mj mj mj mj mj mj mj mj mj mj mj mj
⊚ true
mj
⊚ false
mj
13) The organization of a corporation‘s boundary-spanning functions is complex.
mj mj mj mj mj mj mj mj
⊚ true
mj
⊚ false
mj
3|P a g
mj mj mj mj mj
e
, 14) Businesses are increasingly trying to meet their commitments to multiple stakeholders.
mj mj mj mj mj mj mj mj mj mj
⊚ true
mj
⊚ false
mj
15) The external environment of business is static.
mj mj mj mj mj mj
⊚ true
mj
⊚ false
mj
MULTIPLE CHOICE - mj mj
Choose the one alternative that best completes the state
mj mj mj mj mj mj mj mj mj
ment or answers the question.
mj mj mj mj
16) The relationship between business and society is most accurately described by which statement?
mj mj mj mj mj mj mj mj mj mj mj mj
A) Business is an unbounded entity within the larger bounded entity of society.
mj mj mj mj mj mj mj mj mj mj mj
B) Society is a distinct bounded entity within the larger bounded entity of business.
mj mj mj mj mj mj mj mj mj mj mj mj
C) Business is a distinct bounded entity separate from the bounded entity of society.
mj mj mj mj mj mj mj mj mj mj mj mj
D) Business is a distinct bounded entity within the larger bounded entity of society.
mj mj mj mj mj mj mj mj mj mj mj mj
17) According to general systems theory, boundary exchanges are exemplified by which of the following?
mj mj mj mj mj mj mj mj mj mj mj mj mj
A) An industrial company installs new equipment in its plant to comply with environmental regulations.
mj mj mj mj mj mj mj mj mj mj mj mj mj
B) A software company develops an application for a client.
mj mj mj mj mj mj mj mj
C) A purchasing department employee negotiates a price on parts with a supplier.
mj mj mj mj mj mj mj mj mj mj mj
D) All of these choices are correct.
mj mj mj mj mj
18) The inseparable relationship between business and society results in which of the following?
mj mj mj mj mj mj mj mj mj mj mj mj
A) All business decisions have a social impact.
mj mj mj mj mj mj
B) The vitality of business depends on society's actions and attitudes.
mj mj mj mj mj mj mj mj mj
C) The survival of business is independent of society.
mj mj mj mj mj mj mj
D) Both ―All business decisions have a social impact‖ and ―The vitality of business depends on society‘s action
mj mj mj mj mj mj mj mj mj mj mj mj mj mj mj mj
s and attitudes‖ are correct.
mj mj mj mj
4|P a g
mj mj mj mj mj
e
