BUS-100 Midterm Review

Which of the following are examples of natural monopolies?

Electric utilities and railroads.

Which one of the following is considered to be a nonmarket stakeholder of business?

Nongovernmental organizations

A legal right of shareholders is:

To vote on members for the board of directors.

When working well, the issue management process:

Continuously cycles back to the beginning and repeats

Which of the following examples does not show a company guided by enlightened self-interest?

A company breaking past records by maximizing quarterly profits.

Which of the following companies is being the most socially responsible?

A company trying its best to operate in a way which will help local students get education and jobs.

The emergence of a public issue indicates that:

A gap may be developing between what stakeholders expect and what an organization is actually doing

Which of the following is not an example of stakeholders' economic power?

A social group protests a government's decision to raise taxes.

Failure to understand the beliefs and expectations of stakeholders:

Causes the performance-expectations gap to grow larger

As business becomes increasingly global:

Cross-cultural contradictions will increase.

An argument that opposes the idea of high executive pay is:

High salaries divert resources that could be used to invest in the business.

Proponents against corporate social responsibility feel that public officials, not business people, should solve societal problems because:

The private sector is not mandated to solve these issues. and Business people do not have the skill set to solve societal problems.

Stakeholder engagement is:

The process of ongoing relationship building between a business and its stakeholders

Which of the following statements is not true about shareholders?

They own equal shares of company assets.

Corporations that run their operations according to the stakeholder theory of the firm create value by:

innovating new products, increasing their stock price, and developing their employees' professional skills

A firm subscribing to the shareholder theory of the firm would mainly be concerned with providing value for its:

investors

Stakeholder groups can include:

shareholders, business support groups, environmental activists

An emerging business model that attempts to strategically balance the interests of all stakeholders to solve social and environmental problems is called:

B Corporation.

Government's role is to create and enforce laws that:

Balance the relationship between business and society.

A just or fair ethical decision occurs when:

Benefits and burdens are distributed in fair proportions.

Investors may receive an economic benefit from the ownership of stock by receiving:

Both dividends and capital gains.

Which of the following is the result of the inseparable relationship between business and society?

Both of these answers are correct: All business decisions have a social impact and the vitality of business depends on society's actions and attitudes

Which of the following statements is true about corporate social responsibility?

Both of these answers are correct: Businesses should monitor and prevent social problems in advance of their becoming major issues; and corporations should be accountable for any actions that affect people, their communities, and the environment.

Which of the following is an example of fulfilling social objectives through stock ownership?

Divesting from Chinese companies that made products using forced labor.

Cooperation between business and government often occurs with which of the following industries?

Electric utilities and railroads.

Over time, the nature of business's relationship with its stakeholders often:

Evolves through a series of stages

The directors of a company are a central factor in corporate governance because they:

Exercise formal legal authority over company policy.

What is one advantage of operating as a B corporation?

Government certifications are frequently conferred.

All of the following are considered to be ethical issues for marketing professionals except:

Ignoring market fair dealing.

Building ethical safeguards into a company's everyday routines is called:

Institutionalizing ethics.

A stakeholder analysis:

Involves understanding the nature of stakeholder interests.

Contemporary issue management:

Is an interactive, forward-thinking process.

Under the U.S. Corporate Sentencing Guidelines, if a firm has developed a strong ethics program, corporate executives found guilty of criminal activity may have their sentence:

Reduced.

Stakeholder engagement is, at its core, a:

Relationship

At the core of rights reasoning is the belief that:

Respecting others is the essence of human rights.

A large sporting goods store that raised the age for purchase of some firearms in response to public concerns for gun control were seen by detractors as:

Risking their reputation by engaging in politics.

Around the world, government:

Sometimes cooperates and sometimes is in conflict with business.

The issue management process is a:

Systematic process companies use when responding to public issues that are of greatest importance to the business

When the benefits of an action outweigh its costs, the action is considered ethically preferred according to:

Utilitarian reasoning.

Proponents of business as a political participant argue:

Both of these answers are correct: A pluralistic system invites many participants; and business is a vital stakeholder of government.

Some companies have created a department of corporate citizenship to:

Centralize under common leadership wide-ranging corporate citizenship functions.

Which political action strategy seeks to gain support from other affected organizations to better influence policymakers?

Constituency-building strategy.

The capability of corporations to influence government, the economy, and society, based on their organizational resources is called:

Corporate power

The iron law of responsibility says that:

In the long run, those who do not use power responsibly will lose it.

The five types of stakeholders' power recognized by most experts are:

"Voting, economic, political, legal, and informational power. "

Companies demonstrate global corporate citizenship by:

Both of these answers are correct: Finding business opportunities that serve society and integrating concern for both financial and social performance.

Public policies and government regulations are shaped by:

Business Special interest groups. Government.

The board committee that administers and approves salaries and benefits of high-level managers in a company is called:

Compensation.

An argument in support of high executive compensation is:

High salaries provide an incentive for innovation and risk-taking.

Which of the following is a key feature of effective boards of directors?

Hold regular meetings without the CEO present.

Business managers need a set of ethical guidelines to help them:

Identify and analyze the nature of the ethical problem.

The reason(s) behind the uncertainty of an ethical or unethical decision is (are) that different people and groups:

May honestly and genuinely use different sources of information. May rank various rights in different ways. May not share the same meaning of justice.

Proactive companies are:

Much less likely to be blindsided by crises and negative surprises

Government regulations help balance negative externalities such as:

No smoking rules enforced to mitigate the effects of second-hand smoke.

A company that channels employee behavior in a lawful direction by emphasizing the threat of detection and punishment is:

Operating under the compliance-based approach.

One of the main reasons that American executives are paid so much is:

Pay is set by the compensation committees of the board, largely comprised of other CEOs who have an interest in pushing compensation up.

An analysis of the stability or instability of a government is an example of scanning which environment?

Political

A common tactic in a financial-incentive political strategy is:

Political contributions.

What is not an external stakeholder of the firm?

managers