TEST BANK
BUSINESS AND SOCIETY: STAKEHOLDERS,
ETHICS, PUBLIC POLICY
,Table Of Contents
Chapter 1: The Corporation And Its Stakeholders
Chapter 2: Managing Public Issues And Stakeholder Relationships
Chapter 3: Corporate Social Responsibility And Global Citizenship
Chapter 4: Business In A Globalized World
Chapter 5: Ethics And Ethical Reasoning
Chapter 6: Organizational Ethics
Chapter 7: Business–Government Relations
Chapter 8: Influencing The Political Environment
Chapter 9: Sustainable Development And Global Business
Chapter 10: Managing For Sustainability
Chapter 11: The Role Of Technology
Chapter 12: Regulating And Managing Technology
Chapter 13: Shareholder Rights And Corporate Governance
Chapter 14: Consumer Protection
Chapter 15: Employees And The Corporation
Chapter 16: Managing A Diverse Workforce
Chapter 17: Business And Its Suppliers
Chapter 18: The Community And The Corporation
Chapter 19: Managing The Public And The Corporate Reputation
,Chapter 1: The Corporation And Its Stakeholders
Answers Are At The End Of Each Chapter
Student Name:
True/False - Write 'T' If The Statement Is True And 'F' If The Statement Is False.
1) A Business Is Any Organization That Is Engaged In Making A Product Or Providing A
Service For A Profit.
⊚ True
⊚ False
2) The Term Stakeholder Refers Exclusively To The Founders Of A Business
Organization.
⊚ True
⊚ False
3) Businesses And Society Are Independent Of Each Other.
⊚ True
⊚ False
4) The Stakeholder Theory Of The Firm Argues That A Firm’s Sole Purpose Is To
Create Long-Term Value For Its Shareholders.
⊚ True
⊚ False
5) The Instrumental Argument For The Stakeholder Theory Of The Firm Says
That Companies Perform Better If They Consider The Rights And Concerns
Of Multiple Groups In Society.
⊚ True
⊚ False
6) The Normative Argument For The Stakeholder Theory Of The Firm Says That The
Stakeholder View Is Simply A More Realistic Description Of How Companies Really
Work.
⊚ True
⊚ False
,7) Nonmarket Stakeholders Are Those That Engage In Economic Transactions With
The Company As It Carries Out Its Primary Purpose Of Providing Society With Goods
And Services.
⊚ True
⊚ False
8) Market Stakeholders Include Nongovernmental Organizations And Business Support
Groups.
⊚ True
⊚ False
9) Government Can Be Considered Both A Market And A Nonmarket Stakeholder.
⊚ True
⊚ False
10) The Interests Of Different Stakeholders Often Coincide.
⊚ True
⊚ False
11) The First Step Of Stakeholder Analysis Is To Identify Relevant Stakeholders.
⊚ True
⊚ False
12) Some Scholars Have Suggested That Managers Pay The Most Attention To
Stakeholders Possessing The Least Salience.
⊚ True
⊚ False
13) The Organization Of A Corporation’s Boundary-Spanning Functions Is Complex.
⊚ True
⊚ False
14) Businesses Are Increasingly Trying To Meet Their Commitments To Multiple
Stakeholders.
⊚ True
⊚ False
15) The External Environment Of Business Is Static.
⊚ True
⊚ False
,Multiple Choice - Choose The One Alternative That Best Completes The
Statement Or Answers The Question.
16) The Relationship Between Business And Society Is Most Accurately
Described By Which Statement?
A) Business Is An Unbounded Entity Within The Larger Bounded Entity Of
Society.
B) Society Is A Distinct Bounded Entity Within The Larger Bounded Entity Of
Business.
C) Business Is A Distinct Bounded Entity Separate From The Bounded Entity Of
Society.
D) Business Is A Distinct Bounded Entity Within The Larger Bounded Entity Of
Society.
17) According To General Systems Theory, Boundary Exchanges Are Exemplified By
Which Of The Following?
A) An Industrial Company Installs New Equipment In Its Plant To
Comply With Environmental Regulations.
B) A Software Company Develops An Application For A Client.
C) A Purchasing Department Employee Negotiates A Price On Parts With A
Supplier.
D) All Of These Choices Are Correct.
18) The Inseparable Relationship Between Business And Society Results In Which Of The
Following?
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 “All Business Decisions Have A Social Impact” And “The Vitality
Of Business Depends On Society’s Actions And Attitudes” Are Correct.
19) Which Of The Following Statements Is Not True About The Interactive Social
System?
A) Business And Society Need, As Well As Influence, Each Other.
B) The Boundary Between Business And Society Is Clear And Distinct.
C) Business Is A Part Of Society, And Society Penetrates Far And Often Into
Business.
D) Business And Society Are Both Separate And Connected.
20) A Firm Subscribing To The Shareholder Theory Of The Firm Would Mainly Be
Concerned With Providing Long-Term Value For Its
A) Investors.
B) Customers.
C) Board Of Directors.
D) Community.
,21) Corporations That Follow The Stakeholder Theory Of The Firm Create Value By
A) Constantly Innovating New Products.
B) Increasing Their Stock Price.
C) Developing Their Employees’ Skills.
D) All Of These Choices Are Correct.
22) Which Argument Says That Stakeholder Management Realistically Depicts How
Companies Really Work?
A) Descriptive Argument
B) Instrumental Argument
C) Normative Argument
D) Fiduciary Argument
23) The Instrumental Argument States That Stakeholder
Management Is
A) A More Realistic Description Of How Companies Really
Work.
B) More Effective As A Corporate Strategy.
C) Simply The Right Thing To Do.
D) Determined By The Amount Of Stock Issued.
24) The Fiduciary Duty Of Managers Benefits A Firm's
A) Shareholders.
B) Customers.
C) Employees.
D) All Of These Choices Are Correct.
25) The Main Reason A Number Of European Countries Require Public
Companies To Include Employee Members On Their Boards Of Directors Is
That
A) The Employees Will Be Available To Answer Other Board Members' Questions.
B) Management Will Not Have To Attend The Meetings.
C) Employees' Interests Will Be Explicitly Represented.
D) Employees Will Have More Power Than Any Other Stakeholder.
26) Stakeholder Groups Can Include
A) Shareholders.
B) Business Support Groups.
C) Environmental Activists.
D) All Of These Choices Are Correct.
,27) A Nonmarket Stakeholder Of Business Is Exemplified By Which Of The Following?
A) Customers
B) Nongovernmental Organizations
C) Creditors
D) Shareholders
28) A Market Stakeholder Of Business Is Exemplified By Which Of The Following?
A) Business Support Groups
B) Creditors
C) Activist Groups
D) Nongovernmental Organizations
29) All Of The Following Are External Stakeholders Of The Firm Except
A) Managers.
B) Customers.
C) Shareholders.
D) Suppliers.
30) When A Person Or Group Holds Multiple Stakeholder Roles, It Is Referred To As
A) Role Sets.
B) Primary Stakeholder(S).
C) Role Theory.
D) Role Play.
31) A Stakeholder Analysis
A) Creates Equality Among All Stakeholder Interests.
B) Allows Managers To Examine Two Primary Questions.
C) Involves Understanding The Nature Of Stakeholder Interests.
D) All Of These Choices Are Correct.
32) The Five Types Of Stakeholders' Power Recognized By Most Experts Are
A) Voting, Economic, Political, Legal, And Informational Power.
B) Social, Legal, Environmental, Economic, And Political Power.
C) Social, Regulatory, Voting, Governance, And Information Power.
D) Economic, Informational, Legal, Shareholder, And Political Power.
, 33) The Power Of Stakeholders Is Accurately Described By Which
Statement(S)?
A) Different Stakeholders Have Different Types And Degrees Of
Power.
B) An Individual Stakeholder May Utilize Multiple Powers.
C) Stakeholder Power Leverages Resources To Achieve A Desired Outcome.
D) All Of These Choices Are Correct.
34) Customers Can Exercise Economic Stakeholder Power By
A) Voting On A Proposed Merger For The Company And A Competitor.
B) Boycotting Products They Believe Are Too Expensive.
C) Suing The Company For Damages Caused By Products.
D) Writing Negative Online Product Reviews.
35) Which Statement Is An Example Of Stakeholders' Political Power?
A) A Social Group Protests A Government’s Decision To Raise Property Taxes.
B) A Supplier Halts Shipments To A Business Customer That Is Behind On
Payments.
C) A State Government Implements A New Business-Related Regulation.
D) A Local Community Boycotts A Grocery Store Suspected Of Discriminatory
Hiring.
36) When A Community Group Sues A Company For Health Effects Caused By The
Unsafe Disposal Of Toxic Chemicals, This Is An Exercise Of A Stakeholder's
A) Legal Power.
B) Voting Power.
C) Economic Power.
D) Political Power.
37) Which Stakeholder Group(S) Can Exercise Legal Power?
A) Employees
B) Customers
C) Shareholders
D) All Of These Choices Are Correct.
38) What Actions Might A Local Community Use To Influence A Company’s Decisions?
A) Publicizing An Issue On Social Media
B) Lobbying Government Policy Makers For Regulations
C) Protesting Corporate Behavior At Shareholder Meetings
D) All Of These Choices Are Correct.
,39) With The Explosive Growth Of Technologies That Facilitate The Sharing Of
Information, Which Kind Of Stakeholder Power Has Become Increasingly
Important?
A) Economic Power
B) Political Power
C) Informational Power
D) Legal Power
40) What Is The Primary Reason That Stakeholder Coalitions Form?
A) The Stakeholder Power(S) Of Different Groups Coincides.
B) The Communication Skills Of Different Groups Coincide.
C) The Stakeholder Interest(S) Of Different Groups Coincides.
D) The Urgency Of Different Stakeholder Groups Coincides.
41) When Something Stands Out From A Background, Is Seen As Important, Or Draws
Attention It Is
A) Urgent.
B) Salient.
C) Powerful.
D) Legitimate.
42) Particular Stakeholders Stand Out To Managers When They Exhibit
A) Integrity, Power, And Legitimacy.
B) Power, Legitimacy, And Urgency.
C) Integrity, Loyalty, And Power.
D) Legitimacy, Loyalty, And Urgency.
43) A Stakeholder Map Is A Useful Tool Because
A) It Enables Managers To Quickly See How Stakeholders Feel About An Issue.
B) It Allows Managers To Evaluate What Outcomes Are Likely Regarding An
Issue.
C) It Helps Managers Identify Stakeholder Coalitions Likely To Form.
D) All Of These Choices Are Correct.
44) Departments, Or Offices, Within An Organization That Reach Across The
Dividing Line That Separates The Company From Groups And People In
Society Are
A) Inter-Departmental Divisions.
B) Geographical Location Areas.
C) Boundary-Spanning Departments.
D) Organizational Maps.
, 45) External Forces That Influence The Relationship Between Business And Society
Include
A) Increased Globalization And New Government Regulations Of Business.
B) Dynamic Natural Environment And New Technology Advances.
C) Changing Societal Expectations And A Growing Demand For Ethical Values.
D) All Of These Choices Are Correct.
46) In The Case “Tipping Point At Union Square Hospitality Group (Ushg),” Who
Were The Internal Market Stakeholders?
A) Customers
B) Investors
C) Employees
D) Governments
47) In The Case “Tipping Point At Union Square Hospitality Group (Ushg),” What
Was The Primary Reason The Company Reversed Its No-Tipping Policy?
A) To Reward Back-Of-House Workers Who Earned Lower Base Pay
B) To Better Satisfy The Needs Of All Ushg Stakeholders
C) To Avoid Penalties From State Tip Regulation Offenses
D) Because The Majority Of Customers "Hated" The Policy
Short Answer. Write The Word Or Phrase That Best Completes Each
Statement Or Answers The Question.
48) Describe How General Systems Theory Can Be Applied To A Business.
49) Supporters Of The Stakeholder Theory Of The Firm Make Three Core Arguments
For Their Position. Define And Provide Examples Of Each.
BUSINESS AND SOCIETY: STAKEHOLDERS,
ETHICS, PUBLIC POLICY
,Table Of Contents
Chapter 1: The Corporation And Its Stakeholders
Chapter 2: Managing Public Issues And Stakeholder Relationships
Chapter 3: Corporate Social Responsibility And Global Citizenship
Chapter 4: Business In A Globalized World
Chapter 5: Ethics And Ethical Reasoning
Chapter 6: Organizational Ethics
Chapter 7: Business–Government Relations
Chapter 8: Influencing The Political Environment
Chapter 9: Sustainable Development And Global Business
Chapter 10: Managing For Sustainability
Chapter 11: The Role Of Technology
Chapter 12: Regulating And Managing Technology
Chapter 13: Shareholder Rights And Corporate Governance
Chapter 14: Consumer Protection
Chapter 15: Employees And The Corporation
Chapter 16: Managing A Diverse Workforce
Chapter 17: Business And Its Suppliers
Chapter 18: The Community And The Corporation
Chapter 19: Managing The Public And The Corporate Reputation
,Chapter 1: The Corporation And Its Stakeholders
Answers Are At The End Of Each Chapter
Student Name:
True/False - Write 'T' If The Statement Is True And 'F' If The Statement Is False.
1) A Business Is Any Organization That Is Engaged In Making A Product Or Providing A
Service For A Profit.
⊚ True
⊚ False
2) The Term Stakeholder Refers Exclusively To The Founders Of A Business
Organization.
⊚ True
⊚ False
3) Businesses And Society Are Independent Of Each Other.
⊚ True
⊚ False
4) The Stakeholder Theory Of The Firm Argues That A Firm’s Sole Purpose Is To
Create Long-Term Value For Its Shareholders.
⊚ True
⊚ False
5) The Instrumental Argument For The Stakeholder Theory Of The Firm Says
That Companies Perform Better If They Consider The Rights And Concerns
Of Multiple Groups In Society.
⊚ True
⊚ False
6) The Normative Argument For The Stakeholder Theory Of The Firm Says That The
Stakeholder View Is Simply A More Realistic Description Of How Companies Really
Work.
⊚ True
⊚ False
,7) Nonmarket Stakeholders Are Those That Engage In Economic Transactions With
The Company As It Carries Out Its Primary Purpose Of Providing Society With Goods
And Services.
⊚ True
⊚ False
8) Market Stakeholders Include Nongovernmental Organizations And Business Support
Groups.
⊚ True
⊚ False
9) Government Can Be Considered Both A Market And A Nonmarket Stakeholder.
⊚ True
⊚ False
10) The Interests Of Different Stakeholders Often Coincide.
⊚ True
⊚ False
11) The First Step Of Stakeholder Analysis Is To Identify Relevant Stakeholders.
⊚ True
⊚ False
12) Some Scholars Have Suggested That Managers Pay The Most Attention To
Stakeholders Possessing The Least Salience.
⊚ True
⊚ False
13) The Organization Of A Corporation’s Boundary-Spanning Functions Is Complex.
⊚ True
⊚ False
14) Businesses Are Increasingly Trying To Meet Their Commitments To Multiple
Stakeholders.
⊚ True
⊚ False
15) The External Environment Of Business Is Static.
⊚ True
⊚ False
,Multiple Choice - Choose The One Alternative That Best Completes The
Statement Or Answers The Question.
16) The Relationship Between Business And Society Is Most Accurately
Described By Which Statement?
A) Business Is An Unbounded Entity Within The Larger Bounded Entity Of
Society.
B) Society Is A Distinct Bounded Entity Within The Larger Bounded Entity Of
Business.
C) Business Is A Distinct Bounded Entity Separate From The Bounded Entity Of
Society.
D) Business Is A Distinct Bounded Entity Within The Larger Bounded Entity Of
Society.
17) According To General Systems Theory, Boundary Exchanges Are Exemplified By
Which Of The Following?
A) An Industrial Company Installs New Equipment In Its Plant To
Comply With Environmental Regulations.
B) A Software Company Develops An Application For A Client.
C) A Purchasing Department Employee Negotiates A Price On Parts With A
Supplier.
D) All Of These Choices Are Correct.
18) The Inseparable Relationship Between Business And Society Results In Which Of The
Following?
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 “All Business Decisions Have A Social Impact” And “The Vitality
Of Business Depends On Society’s Actions And Attitudes” Are Correct.
19) Which Of The Following Statements Is Not True About The Interactive Social
System?
A) Business And Society Need, As Well As Influence, Each Other.
B) The Boundary Between Business And Society Is Clear And Distinct.
C) Business Is A Part Of Society, And Society Penetrates Far And Often Into
Business.
D) Business And Society Are Both Separate And Connected.
20) A Firm Subscribing To The Shareholder Theory Of The Firm Would Mainly Be
Concerned With Providing Long-Term Value For Its
A) Investors.
B) Customers.
C) Board Of Directors.
D) Community.
,21) Corporations That Follow The Stakeholder Theory Of The Firm Create Value By
A) Constantly Innovating New Products.
B) Increasing Their Stock Price.
C) Developing Their Employees’ Skills.
D) All Of These Choices Are Correct.
22) Which Argument Says That Stakeholder Management Realistically Depicts How
Companies Really Work?
A) Descriptive Argument
B) Instrumental Argument
C) Normative Argument
D) Fiduciary Argument
23) The Instrumental Argument States That Stakeholder
Management Is
A) A More Realistic Description Of How Companies Really
Work.
B) More Effective As A Corporate Strategy.
C) Simply The Right Thing To Do.
D) Determined By The Amount Of Stock Issued.
24) The Fiduciary Duty Of Managers Benefits A Firm's
A) Shareholders.
B) Customers.
C) Employees.
D) All Of These Choices Are Correct.
25) The Main Reason A Number Of European Countries Require Public
Companies To Include Employee Members On Their Boards Of Directors Is
That
A) The Employees Will Be Available To Answer Other Board Members' Questions.
B) Management Will Not Have To Attend The Meetings.
C) Employees' Interests Will Be Explicitly Represented.
D) Employees Will Have More Power Than Any Other Stakeholder.
26) Stakeholder Groups Can Include
A) Shareholders.
B) Business Support Groups.
C) Environmental Activists.
D) All Of These Choices Are Correct.
,27) A Nonmarket Stakeholder Of Business Is Exemplified By Which Of The Following?
A) Customers
B) Nongovernmental Organizations
C) Creditors
D) Shareholders
28) A Market Stakeholder Of Business Is Exemplified By Which Of The Following?
A) Business Support Groups
B) Creditors
C) Activist Groups
D) Nongovernmental Organizations
29) All Of The Following Are External Stakeholders Of The Firm Except
A) Managers.
B) Customers.
C) Shareholders.
D) Suppliers.
30) When A Person Or Group Holds Multiple Stakeholder Roles, It Is Referred To As
A) Role Sets.
B) Primary Stakeholder(S).
C) Role Theory.
D) Role Play.
31) A Stakeholder Analysis
A) Creates Equality Among All Stakeholder Interests.
B) Allows Managers To Examine Two Primary Questions.
C) Involves Understanding The Nature Of Stakeholder Interests.
D) All Of These Choices Are Correct.
32) The Five Types Of Stakeholders' Power Recognized By Most Experts Are
A) Voting, Economic, Political, Legal, And Informational Power.
B) Social, Legal, Environmental, Economic, And Political Power.
C) Social, Regulatory, Voting, Governance, And Information Power.
D) Economic, Informational, Legal, Shareholder, And Political Power.
, 33) The Power Of Stakeholders Is Accurately Described By Which
Statement(S)?
A) Different Stakeholders Have Different Types And Degrees Of
Power.
B) An Individual Stakeholder May Utilize Multiple Powers.
C) Stakeholder Power Leverages Resources To Achieve A Desired Outcome.
D) All Of These Choices Are Correct.
34) Customers Can Exercise Economic Stakeholder Power By
A) Voting On A Proposed Merger For The Company And A Competitor.
B) Boycotting Products They Believe Are Too Expensive.
C) Suing The Company For Damages Caused By Products.
D) Writing Negative Online Product Reviews.
35) Which Statement Is An Example Of Stakeholders' Political Power?
A) A Social Group Protests A Government’s Decision To Raise Property Taxes.
B) A Supplier Halts Shipments To A Business Customer That Is Behind On
Payments.
C) A State Government Implements A New Business-Related Regulation.
D) A Local Community Boycotts A Grocery Store Suspected Of Discriminatory
Hiring.
36) When A Community Group Sues A Company For Health Effects Caused By The
Unsafe Disposal Of Toxic Chemicals, This Is An Exercise Of A Stakeholder's
A) Legal Power.
B) Voting Power.
C) Economic Power.
D) Political Power.
37) Which Stakeholder Group(S) Can Exercise Legal Power?
A) Employees
B) Customers
C) Shareholders
D) All Of These Choices Are Correct.
38) What Actions Might A Local Community Use To Influence A Company’s Decisions?
A) Publicizing An Issue On Social Media
B) Lobbying Government Policy Makers For Regulations
C) Protesting Corporate Behavior At Shareholder Meetings
D) All Of These Choices Are Correct.
,39) With The Explosive Growth Of Technologies That Facilitate The Sharing Of
Information, Which Kind Of Stakeholder Power Has Become Increasingly
Important?
A) Economic Power
B) Political Power
C) Informational Power
D) Legal Power
40) What Is The Primary Reason That Stakeholder Coalitions Form?
A) The Stakeholder Power(S) Of Different Groups Coincides.
B) The Communication Skills Of Different Groups Coincide.
C) The Stakeholder Interest(S) Of Different Groups Coincides.
D) The Urgency Of Different Stakeholder Groups Coincides.
41) When Something Stands Out From A Background, Is Seen As Important, Or Draws
Attention It Is
A) Urgent.
B) Salient.
C) Powerful.
D) Legitimate.
42) Particular Stakeholders Stand Out To Managers When They Exhibit
A) Integrity, Power, And Legitimacy.
B) Power, Legitimacy, And Urgency.
C) Integrity, Loyalty, And Power.
D) Legitimacy, Loyalty, And Urgency.
43) A Stakeholder Map Is A Useful Tool Because
A) It Enables Managers To Quickly See How Stakeholders Feel About An Issue.
B) It Allows Managers To Evaluate What Outcomes Are Likely Regarding An
Issue.
C) It Helps Managers Identify Stakeholder Coalitions Likely To Form.
D) All Of These Choices Are Correct.
44) Departments, Or Offices, Within An Organization That Reach Across The
Dividing Line That Separates The Company From Groups And People In
Society Are
A) Inter-Departmental Divisions.
B) Geographical Location Areas.
C) Boundary-Spanning Departments.
D) Organizational Maps.
, 45) External Forces That Influence The Relationship Between Business And Society
Include
A) Increased Globalization And New Government Regulations Of Business.
B) Dynamic Natural Environment And New Technology Advances.
C) Changing Societal Expectations And A Growing Demand For Ethical Values.
D) All Of These Choices Are Correct.
46) In The Case “Tipping Point At Union Square Hospitality Group (Ushg),” Who
Were The Internal Market Stakeholders?
A) Customers
B) Investors
C) Employees
D) Governments
47) In The Case “Tipping Point At Union Square Hospitality Group (Ushg),” What
Was The Primary Reason The Company Reversed Its No-Tipping Policy?
A) To Reward Back-Of-House Workers Who Earned Lower Base Pay
B) To Better Satisfy The Needs Of All Ushg Stakeholders
C) To Avoid Penalties From State Tip Regulation Offenses
D) Because The Majority Of Customers "Hated" The Policy
Short Answer. Write The Word Or Phrase That Best Completes Each
Statement Or Answers The Question.
48) Describe How General Systems Theory Can Be Applied To A Business.
49) Supporters Of The Stakeholder Theory Of The Firm Make Three Core Arguments
For Their Position. Define And Provide Examples Of Each.
