International -- Test 4

A US CEO today earns about 200 times what the average blue-collar worker earns in the US. a. True b. False

false

A key assumption of the stakeholder view of the firm is that the firm should focus exclusively on the firm's bottom-line profit. a. True b. False

false

A supply chain is designed to move products from the producers or manufacturers to the customers. a. True b. False

false

Agility refers to the ability to change supply chain configurations in response to longer-term changes in the environment and technology. a. True b. False

false

If one of your competitors is engaging in high-profile CSR activities, you will be forced to match or exceed your competitor's efforts in order to remain competitive. a. True b. False

false

In the US, directors on the firm's board of directors are at risk financially if they fail to protect the interests of the firm's shareholders. a. True b. False

false

International bonds typically can be sold at a higher interest rate internationally than they can be sold domestically. a. True b. False

false

It would be irresponsible for firms to participate in social causes not directly related to the management of primary stakeholders. a. True b. False

false

The agency relationship is the relationship between the Chief Executive Officer (CEO) and all other managers descending through the ranks of leadership. a. True b. False

false

The stock dividends of a firm are fixed and are not set by the firm's management. a. True b. False

false

The term "product" refers to a tangible product but not to an intangible service. a. True b. False

false

There are two external governance mechanisms: the market for product competition and the market for corporate control. a. True b. False

false

There is solid research evidence that there is a positive link between CSR activities and the profits of the firm. a. True b. False

false

When people are brought in from outside a firm to serve on that firm's board of directors, they are called inside directors. a. True b. False

false

The basic economic theory of supply and demand suggests that when price drops, consumers will buy more and thus generate stronger demand. a. True b. False

true

The flow of products, services, finances, and information from a product source to a customer is called a supply chain. a. True b. False

true

When a firm starts categorizing its customers into groups based on such factors as gender, age, or income level, it is engaging in: a. make-or-buy decisions. b. market segmentation. c. supply chain management. d. price elasticity.

b. market segmentation

When a firm anticipates ways to take responsibility for its actions in its community and tries to do more to help that community than is required legally, what type of strategy is the firm using? a. Accommodative strategy b. Proactive strategy c. Reactive strategy d. Defensive strategy

b. proactive strategy

When a firm denies that there is a problem and waits for regulatory pressures before it will change its behavior, what type of strategy is the firm using? a. Accommodative strategy b. Reactive strategy c. Proactive strategy d. Defensive strategy

b. reactive strategy

The term "distribution channel" has been replaced for the most part by the term: a. C-O-E effect. b. supply chain. c. marketing mix. d. price elasticity.

b. supply chain

The interests of various parties in a supply chain are not always well-aligned, which is why neutral third-party intermediaries can be useful. a. True b. False

true

When Gillette Co. markets razors of different design to men and women, it is using a market segmentation strategy. a. True b. False

true

When a large-scale farming operation phases out the use of some product in favor of a healthier alternative, the firm is said to be adaptable. a. True b. False

true

When shareholders are considered the single most important stakeholder group of a firm, this is called shareholder capitalism. a. True b. False

true

When top managers of a firm serve on that firm's board of directors, they are called inside directors. a. True b. False

true

A loan that the firm needs to pay back at a given time with interest is known as: a. debt. b. tunneling. c. LBOs. d. equity.

a. debt

When a firm focuses on regulatory compliance but makes little actual commitment to CSR, what type of strategy is the firm using? a. Defensive strategy b. Proactive strategy c. Reactive strategy d. Accommodative strategy

a. defensive strategy

The shares of stock in a firm that represent the rights of the firm's owners are known as: a. equity. b. debt. c. tunneling. d. LBOs.

a. equity

Which of the following is NOT a component of the marketing mix? a. People b. Place c. Promotion d. Price

a. people

The study of how customer demand for a product changes with changes in the price of the product is called: a. price elasticity. b. C-O-E effect. c. distribution. d. 3PL.

a. price elasticity

An individual or group who is affected by the organization's objectives is called a: a. stakeholder. b. bondholder. c. stockholder. d. CSR.

a. stakeholder

When firms pursue economic, social, and environmental performance measures that simultaneously satisfy the demands of all stakeholder groups, they have a: a. triple bottom line. b. commitment to CSR. c. defensive strategy. d. proactive strategy.

a. triple bottom line

A US CEO today earns about how many times what the average blue-collar worker earns in the US? a. 200 times b. 400 times c. 100 times d. 300 times

b. 400 times

Identifying groups of consumers (e.g., age, gender, income, education) who differ in their purchase behavior is the basic idea behind: a. make-or-buy decisions. b. market segmentation. c. price elasticity. d. supply chain management.

b. market segmentation

If a firm is completely owned and controlled by one or a few individuals, it has a: a. diffused ownership. b. state ownership. c. concentrated ownership and control. d. separation of ownership and control.

c. concentrated ownership and control

The positive or negative perception of firms and products from a certain country is known as: a. reputation. b. distribution. c. country of origin effect. d. promotion.

c. country of origin effect

Another term for a place strategy is: a. price elasticity. b. marketing mix. c. distribution channel. d. C-O-E effect.

c. distribution channel

All of the following are primary stakeholders of a firm EXCEPT: a. employees. b. managers. c. environmental groups. d. customers.

c. environmental groups

If a firm fails to satisfy the terms of a loan obligation, it is said to be: a. in foreclosure. b. bankrupt. c. in default. d. tunneling.

c. in default

A firm's interest in acting beyond merely economic, technical, and legal requirements to provide benefits to society is known as the firm's: a. proactive strategy. b. triple bottom line. c. defensive strategy. d. CSR.

d. CSR

State-owned enterprises were in decline around the globe until 2008, when a return to government financial ownership and intervention was prompted by: a. a worldwide mortgage crisis. b. a resurgence of Communism. c. a shift in political leadership. d. a desire to prevent bankruptcies.

d. a desire to prevent bankruptcies

In financing, a "loan" issued by the firm and held by creditors is called a(n): a. trade. b. equity investment. c. stock. d. bond.

d. bond

The majority of large firms in Europe, Asia, Latin America, and Africa have what type of ownership pattern? a. Separation of ownership and control b. Diffused ownership c. State ownership d. Concentrated family ownership and control

d. concentrated family ownership and control

The attempt to create and defend markets that satisfy the needs of consumers and business customers is the basic thrust of: a. price elasticity. b. make-or-buy decisions. c. 3PL. d. marketing.

d. marketing

All of the following are primary stakeholders of a firm EXCEPT: a. employees. b. suppliers. c. customers. d. members of the community where the firm is located.

d. members of the community where the firm is located

All of the following are components of the marketing mix EXCEPT: a. promotion. b. place. c. price. d. profit.

d. profit

For equity, the cost of capital is called the (blank) , while for bonds, the cost of capital is called the (blank)

dividend, interest

A firm relies on (blank) for its continuous survival and prosperity.

primary stakeholders

A defensive strategy of the firm focuses on regulatory compliance. a. True b. False

true

A proactive strategy indicates that the firm's top management is entirely committed to CSR. a. True b. False

true

A reactive strategy indicates that the firm's top management is not really interested in CSR activities. a. True b. False

true

A supply chain attempts to move the product from the producer to the right place and at the right time for the customer. a. True b. False

true

Shareholders' willingness to work with managers of the firm to "voice" their concerns is part of what is called a "voice-based mechanism." a. True b. False

true

Some developing countries have been known to lower their environmental standards in order to attract investment. a. True b. False

true