MQM 385 Actual Questions and Correct Answers
Q1
A company's stakeholders include which of the following? Stockholders Creditors Employees
Customers All of these choices
Answer: e. All of these choices
Q2
The relationship between an enterprise and its stakeholders is essentially what type of
relationship? Exchange Master-servant Bailor-bailee Supply and demand Quasi-egalitarian
Answer: a. Exchange
Q3
Internal stakeholders of a company include unions. customers. the board of directors. suppliers.
local communities.
Answer: c. the board of directors.
Q4
External stakeholders of a company include unions. the board of directors. executive officers.
stockholders. employees.
Answer: a. unions.
Q5
Why should satisfying stockholder demands receive so much attention in many corporate
mission statements? Stockholders are the most powerful stakeholder group that a company has
to satisfy. Stockholders are the legal owners of the company and are the providers of risk
capital. Stockholders have been successful in blackmailing companies to get their interest
satisfied before those of other claimants. Typically, stockholders have the most invested in the
company's continued survival. Managers feel obliged to pay lip service to stockholder demands.
Answer: b. Stockholders are the legal owners of the company and are the providers of
risk capital.
, Q6
Which of the following statements concerning profitability and profit growth is false? Attaining
future profit growth may require investments that reduce current profitability. Managers must
find the right balance between profitability and profit growth. Too much emphasis on current
profitability at the expense of profit growth can make an enterprise less attractive to
shareholders. Boosting a company's profitability and profit growth rate is inconsistent with
satisfying the claims of other key stakeholder groups. Too much emphasis on profit growth can
reduce profitability and make an enterprise less attractive to shareholders.
Answer: d. Boosting a company's profitability and profit growth rate is inconsistent
with satisfying the claims of other key stakeholder groups.
Q7
Although stockholders are
Answer: a. they can use their authority over corporate funds to
Q8
CEOs can pursue their
Answer: CEOs can pursue their
Q9
Why are some managers
Answer: a. Growth results in large company size, and large size
Q10
A stakeholder impact analysis would include which of the following steps? Identification of
stakeholders Identification of stakeholders' interests and concerns Assessment of the likelihood
that a stakeholder will file discrimination charges against the company Identification of
stakeholders and their interests and concerns Analysis of ethics violations
Answer: d. Identification of stakeholders and their interests and concerns
Q11
Which of the following stakeholders might not want a company to maximize its long-run
profitability and profit growth? Suppliers Creditors Customers Suppliers and customers
Suppliers and creditors
Answer: d. Suppliers and customers
Q1
A company's stakeholders include which of the following? Stockholders Creditors Employees
Customers All of these choices
Answer: e. All of these choices
Q2
The relationship between an enterprise and its stakeholders is essentially what type of
relationship? Exchange Master-servant Bailor-bailee Supply and demand Quasi-egalitarian
Answer: a. Exchange
Q3
Internal stakeholders of a company include unions. customers. the board of directors. suppliers.
local communities.
Answer: c. the board of directors.
Q4
External stakeholders of a company include unions. the board of directors. executive officers.
stockholders. employees.
Answer: a. unions.
Q5
Why should satisfying stockholder demands receive so much attention in many corporate
mission statements? Stockholders are the most powerful stakeholder group that a company has
to satisfy. Stockholders are the legal owners of the company and are the providers of risk
capital. Stockholders have been successful in blackmailing companies to get their interest
satisfied before those of other claimants. Typically, stockholders have the most invested in the
company's continued survival. Managers feel obliged to pay lip service to stockholder demands.
Answer: b. Stockholders are the legal owners of the company and are the providers of
risk capital.
, Q6
Which of the following statements concerning profitability and profit growth is false? Attaining
future profit growth may require investments that reduce current profitability. Managers must
find the right balance between profitability and profit growth. Too much emphasis on current
profitability at the expense of profit growth can make an enterprise less attractive to
shareholders. Boosting a company's profitability and profit growth rate is inconsistent with
satisfying the claims of other key stakeholder groups. Too much emphasis on profit growth can
reduce profitability and make an enterprise less attractive to shareholders.
Answer: d. Boosting a company's profitability and profit growth rate is inconsistent
with satisfying the claims of other key stakeholder groups.
Q7
Although stockholders are
Answer: a. they can use their authority over corporate funds to
Q8
CEOs can pursue their
Answer: CEOs can pursue their
Q9
Why are some managers
Answer: a. Growth results in large company size, and large size
Q10
A stakeholder impact analysis would include which of the following steps? Identification of
stakeholders Identification of stakeholders' interests and concerns Assessment of the likelihood
that a stakeholder will file discrimination charges against the company Identification of
stakeholders and their interests and concerns Analysis of ethics violations
Answer: d. Identification of stakeholders and their interests and concerns
Q11
Which of the following stakeholders might not want a company to maximize its long-run
profitability and profit growth? Suppliers Creditors Customers Suppliers and customers
Suppliers and creditors
Answer: d. Suppliers and customers
