BUS 220 Chapter 1 Test

The issue management process has how may stages?

5

Which of the following statements accurately describe the practice of tax inversion?

A company shifts their headquarters to a foreign country. and A company increases debt in their home country.

The emergence of a public issue indicates that:

A gap has developed between what stakeholders expect and what an organization is actually doing.

An example of an international financial and/or trade institution is:

All of the above

The fiduciary duty of managers benefits a firm's:

All of the above

Which of the following statements is (are) correct about stakeholders' power?

All of the above

According to the United Nations, a feature of democracy is:

All of the above.

Stakeholder groups can include: Question options:

All the Above

Legal environmental intelligence includes:

Considerations of patents, copyrights, or trademarks.

Modern corporations should be socially responsible because they:

Create jobs, influencing the lives of employees.

The explosive use of social media is an example of:

Customer Environment

Which of the following is an argument in favor of corporate social responsibility?

Discourages government regulation.

The issue of reactive management policies occurs in which stage of global corporate citizenship?

Engaged

A public issue exists when there is agreement between the stakeholders' expectations of what a business firm should do and the actual performance of that business firm.

False

Being socially responsible means that a company must abandon its other missions.

False

The World Bank makes currency exchange easier for member countries so that they can participate in global trade.

False

The stakeholder theory of the firm argues that a firm's sole purpose is to create value for its shareholders.

False

The primary goal of a "vulture fund" is to:

Make a profit

All of the following are external stakeholders of the firm except:

Managers

The term "race to the bottom" refers to:

Moving production jobs to the country with the lowest labor cost

Which of the following is an argument against corporate social responsibility?

Requires skills businesses may lack.

The three strategies of globalization can be summarized using what three words?

Sell, make, and buy.

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

Shareholders

Public issues are also sometimes referred to as:

Social Issues and Sociopolitical Issues

Stakeholders involved with one part of a company often may have little or no involvement with another part of the company.

True

Reasons for adopting an enlightened self-interested approach is (are):

All the above

Once an issue has been identified, its implications must be:

Analyzed

Positive reputation can be valued as an intangible corporate:

Asset

Businesses and society are independent of one another.

False

Corporate citizenship refers to a set of beliefs stating that socially responsible behavior is a good idea.

False

Dialogue between a single firm and its stakeholders is always sufficient to address an issue effectively.

False

Enlightened self-interest is the idea that the wealthiest members of society should be charitable toward those less fortunate.

False

Organizations always have full control of a public issue.

False

Some scholars have suggested that managers pay the most attention to stakeholders possessing the least salience.

False

An analysis of the stability or instability of a government is an example of scanning the:

Political Environment

A business is any organization that is engaged in making a product or providing a service for a profit.

True

An argument against corporate social responsibility is that it imposes unequal costs among competitors.

True

Competitive intelligence enables managers in companies of all sizes to make informed decisions in all areas of the business.

True

Corporate social responsibility is the idea that businesses interact with the organization's stakeholders for social good while they pursue economic goals.

True

Environmental analysis is a method managers use to gather information about external issues and trends.

True

Even small local businesses often compete with global companies from around the world.

True

For stakeholder engagement to occur, both the business and the stakeholder must be motivated to work with one another to solve the problem.

True

Globalization directly and indirectly influences the politics, environment, geopolitics, and economics of virtually every country in the world.

True

Government can be considered both a market and nonmarket stakeholder.

True

In the first stage of corporate citizenship, the elementary stage, managers are uninterested and uninvolved with social issues.

True

In the issue management process, identifying the issue involves anticipating emerging issues.

True

Productivity rises more quickly when countries produce goods and services for which they have a natural talent.

True

The concept of corporate social responsibility is rooted in the meaning "to pledge back," creating a commitment to give back to society and the organization's stakeholders.

True

The interests of different stakeholders often coincide.

True

The main purpose of inversion is to reduce corporate income tax obligations.

True

Under the World Trade Organization's most favored nation rule, member countries may not discriminate against foreign products for any reason.

True

Understanding and responding to changing societal expectations is a business necessity.

True

Walmart has been called a "template for 21st century capitalism"

True

A critic of globalization might argue that companies decide to manufacture in China mainly because of China's:

Weak health and safety regulations.

Assets that a person accumulates and owns at a certain point in time are called:

Wealth

Good corporate citizens:

all of the above