Complete Test Bank
Business and Society: Stakeholders Ethics
Public Policy
17TH Edition
by Anne Lawrence (Author), James Weber
All Chapters| Latest
1|P a g e
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, Chapter 1- 0#
19 Answers are at the end of Each chapter Chapter 1
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TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false.
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1) A business is any organization that is engaged in making a product or providing a service for a profit.
0# 0# 0# 0# 0# 0# 0# 0# 0# 0# 0# 0# 0# 0# 0# 0# 0# 0#
⊚ true
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⊚ false
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2) The term stakeholder refers exclusively to the founders of a business organization.
0# 0# 0# 0# 0# 0# 0# 0# 0# 0# 0#
⊚ true
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⊚ false
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3) Businesses and society are independent of each other.
0# 0# 0# 0# 0# 0# 0#
⊚ true
0#
⊚ false
0#
4) The stakeholder theory of the firm argues that a firm‘s sole purpose is to create long-
0# 0# 0# 0# 0# 0# 0# 0# 0# 0# 0# 0# 0# 0# 0#
term value for its shareholders.
0# 0# 0# 0#
⊚ true
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⊚ false
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5) The instrumental argument for the stakeholder theory of the firm says that companies perform better if
0# 0# 0# 0# 0# 0# 0# 0# 0# 0# 0# 0# 0# 0# 0#
they consider the rights and concerns of multiple groups in society.
0# 0# 0# 0# 0# 0# 0# 0# 0# 0# 0#
⊚ true
0#
⊚ false
0#
6) The normative argument for the stakeholder theory of the firm says that the stakeholder view is simply a
0# 0# 0# 0# 0# 0# 0# 0# 0# 0# 0# 0# 0# 0# 0# 0# 0# 0
more realistic description of how companies really work.
# 0# 0# 0# 0# 0# 0# 0#
⊚ true
0#
⊚ false
0#
2|P a g e
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,7) Nonmarket stakeholders are those that engage in economic transactions with the company as it carries o
0# 0# 0# 0# 0# 0# 0# 0# 0# 0# 0# 0# 0# 0# 0#
ut its primary purpose of providing society with goods and services.
0# 0# 0# 0# 0# 0# 0# 0# 0# 0#
⊚ true
0#
⊚ false
0#
8) Market stakeholders include nongovernmental organizations and business support groups.
0# 0# 0# 0# 0# 0# 0# 0#
⊚ true
0#
⊚ false
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9) Government can be considered both a market and a nonmarket stakeholder.
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⊚ true
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⊚ false
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10) The interests of different stakeholders often coincide.
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⊚ true
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⊚ false
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11) The first step of stakeholder analysis is to identify relevant stakeholders.
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⊚ true
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⊚ false
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12) Some scholars have suggested that managers pay the most attention to stakeholders possessing the least salience.
0# 0# 0# 0# 0# 0# 0# 0# 0# 0# 0# 0# 0# 0# 0#
⊚ true
0#
⊚ false
0#
13) The organization of a corporation‘s boundary-spanning functions is complex.
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⊚ true
0#
⊚ false
0#
3|P a g e
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, 14) Businesses are increasingly trying to meet their commitments to multiple stakeholders.
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⊚ true
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⊚ false
0#
15) The external environment of business is static.
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⊚ true
0#
⊚ false
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MULTIPLE CHOICE - 0# 0#
Choose the one alternative that best completes the stateme
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nt or answers the question.
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16) The relationship between business and society is most accurately described by which statement?
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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.
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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.
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17) According to general systems theory, boundary exchanges are exemplified by which of the following?
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A) An industrial company installs new equipment in its plant to comply with environmental regulations.
0# 0# 0# 0# 0# 0# 0# 0# 0# 0# 0# 0# 0#
B) A software company develops an application for a client.
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C) A purchasing department employee negotiates a price on parts with a supplier.
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D) All of these choices are correct.
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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.
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C) The survival of business is independent of society.
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D) Both ―All business decisions have a social impact‖ and ―The vitality of business depends on society‘s actions
0# 0# 0# 0# 0# 0# 0# 0# 0# 0# 0# 0# 0# 0# 0# 0# 0#
and attitudes‖ are correct.
0# 0# 0#
4|P a g e
0# 0# 0# 0# 0#
Business and Society: Stakeholders Ethics
Public Policy
17TH Edition
by Anne Lawrence (Author), James Weber
All Chapters| Latest
1|P a g e
0# 0# 0# 0# 0#
, Chapter 1- 0#
19 Answers are at the end of Each chapter Chapter 1
0# 0# 0# 0# 0# 0# 0# 0# 0# 0#
TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false.
0# 0# 0# 0# 0# 0# 0# 0# 0# 0# 0# 0# 0# 0# 0#
1) A business is any organization that is engaged in making a product or providing a service for a profit.
0# 0# 0# 0# 0# 0# 0# 0# 0# 0# 0# 0# 0# 0# 0# 0# 0# 0#
⊚ true
0#
⊚ false
0#
2) The term stakeholder refers exclusively to the founders of a business organization.
0# 0# 0# 0# 0# 0# 0# 0# 0# 0# 0#
⊚ true
0#
⊚ false
0#
3) Businesses and society are independent of each other.
0# 0# 0# 0# 0# 0# 0#
⊚ true
0#
⊚ false
0#
4) The stakeholder theory of the firm argues that a firm‘s sole purpose is to create long-
0# 0# 0# 0# 0# 0# 0# 0# 0# 0# 0# 0# 0# 0# 0#
term value for its shareholders.
0# 0# 0# 0#
⊚ true
0#
⊚ false
0#
5) The instrumental argument for the stakeholder theory of the firm says that companies perform better if
0# 0# 0# 0# 0# 0# 0# 0# 0# 0# 0# 0# 0# 0# 0#
they consider the rights and concerns of multiple groups in society.
0# 0# 0# 0# 0# 0# 0# 0# 0# 0# 0#
⊚ true
0#
⊚ false
0#
6) The normative argument for the stakeholder theory of the firm says that the stakeholder view is simply a
0# 0# 0# 0# 0# 0# 0# 0# 0# 0# 0# 0# 0# 0# 0# 0# 0# 0
more realistic description of how companies really work.
# 0# 0# 0# 0# 0# 0# 0#
⊚ true
0#
⊚ false
0#
2|P a g e
0# 0# 0# 0# 0#
,7) Nonmarket stakeholders are those that engage in economic transactions with the company as it carries o
0# 0# 0# 0# 0# 0# 0# 0# 0# 0# 0# 0# 0# 0# 0#
ut its primary purpose of providing society with goods and services.
0# 0# 0# 0# 0# 0# 0# 0# 0# 0#
⊚ true
0#
⊚ false
0#
8) Market stakeholders include nongovernmental organizations and business support groups.
0# 0# 0# 0# 0# 0# 0# 0#
⊚ true
0#
⊚ false
0#
9) Government can be considered both a market and a nonmarket stakeholder.
0# 0# 0# 0# 0# 0# 0# 0# 0# 0#
⊚ true
0#
⊚ false
0#
10) The interests of different stakeholders often coincide.
0# 0# 0# 0# 0# 0#
⊚ true
0#
⊚ false
0#
11) The first step of stakeholder analysis is to identify relevant stakeholders.
0# 0# 0# 0# 0# 0# 0# 0# 0# 0#
⊚ true
0#
⊚ false
0#
12) Some scholars have suggested that managers pay the most attention to stakeholders possessing the least salience.
0# 0# 0# 0# 0# 0# 0# 0# 0# 0# 0# 0# 0# 0# 0#
⊚ true
0#
⊚ false
0#
13) The organization of a corporation‘s boundary-spanning functions is complex.
0# 0# 0# 0# 0# 0# 0# 0#
⊚ true
0#
⊚ false
0#
3|P a g e
0# 0# 0# 0# 0#
, 14) Businesses are increasingly trying to meet their commitments to multiple stakeholders.
0# 0# 0# 0# 0# 0# 0# 0# 0# 0#
⊚ true
0#
⊚ false
0#
15) The external environment of business is static.
0# 0# 0# 0# 0# 0#
⊚ true
0#
⊚ false
0#
MULTIPLE CHOICE - 0# 0#
Choose the one alternative that best completes the stateme
0# 0# 0# 0# 0# 0# 0# 0# 0#
nt or answers the question.
0# 0# 0# 0#
16) The relationship between business and society is most accurately described by which statement?
0# 0# 0# 0# 0# 0# 0# 0# 0# 0# 0# 0#
A) Business is an unbounded entity within the larger bounded entity of society.
0# 0# 0# 0# 0# 0# 0# 0# 0# 0# 0#
B) Society is a distinct bounded entity within the larger bounded entity of business.
0# 0# 0# 0# 0# 0# 0# 0# 0# 0# 0# 0#
C) Business is a distinct bounded entity separate from the bounded entity of society.
0# 0# 0# 0# 0# 0# 0# 0# 0# 0# 0# 0#
D) Business is a distinct bounded entity within the larger bounded entity of society.
0# 0# 0# 0# 0# 0# 0# 0# 0# 0# 0# 0#
17) According to general systems theory, boundary exchanges are exemplified by which of the following?
0# 0# 0# 0# 0# 0# 0# 0# 0# 0# 0# 0# 0#
A) An industrial company installs new equipment in its plant to comply with environmental regulations.
0# 0# 0# 0# 0# 0# 0# 0# 0# 0# 0# 0# 0#
B) A software company develops an application for a client.
0# 0# 0# 0# 0# 0# 0# 0#
C) A purchasing department employee negotiates a price on parts with a supplier.
0# 0# 0# 0# 0# 0# 0# 0# 0# 0# 0#
D) All of these choices are correct.
0# 0# 0# 0# 0#
18) The inseparable relationship between business and society results in which of the following?
0# 0# 0# 0# 0# 0# 0# 0# 0# 0# 0# 0#
A) All business decisions have a social impact.
0# 0# 0# 0# 0# 0#
B) The vitality of business depends on society's actions and attitudes.
0# 0# 0# 0# 0# 0# 0# 0# 0#
C) The survival of business is independent of society.
0# 0# 0# 0# 0# 0# 0#
D) Both ―All business decisions have a social impact‖ and ―The vitality of business depends on society‘s actions
0# 0# 0# 0# 0# 0# 0# 0# 0# 0# 0# 0# 0# 0# 0# 0# 0#
and attitudes‖ are correct.
0# 0# 0#
4|P a g e
0# 0# 0# 0# 0#
