MGMT STAKEHOLDERS

A market stakeholder is exemplified by which of the following? a.Government agencies. b.Creditors. c.Activist groups. d.Nongovernmental organizations.

b. creditors

The instrumental argument says 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 owned in the firm.

b. more effective as a corporate strategy

Which one of the following is considered to be a non-market stakeholder of business? a.Customers. b.Nongovernmental organizations. c.Creditors. d.Shareholders.

b. nongovernmental organizations

A firm subscribing to the shareholder theory of the firm would mainly be concerned with providing value for its: a. investors b. customers c. board of directors d. community

investors

The government can be considered both a market and non-market stakeholder. TRUE OR FALSE

TRUE

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 OR FALSE

TRUE

A business is an organization that is engaged in making a product or providing a service for a profit. TRUE OR FALSE

TRUE

Market stakeholders include nongovernmental organizations and business support groups. TRUE OR FALSE

FALSE

Non-market 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 OR FALSE

FALSE

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 OR FALSE

FALSE

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

FALSE

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.

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

Stakeholder groups can include: a.Shareholders. b.Business support groups. c.Environmental activists. d.All of these answers are correct.

d. all of these answers are correct

The fiduciary duty of managers benefits a firm's: a.Shareholders. b.Customers. c.Employees. d.All of these answers are correct.

d. all of these answers are correct.

Which argument says that stakeholder management realistically depicts how companies really work? a.Descriptive argument. b.Instrumental argument. c.Normative argument. d.Fiduciary argument.

a. descriptive argument

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.

a. legal power

interactions between business and society occur: a.Within a finite natural ecosystem. b.Only during an environmental crisis. c.When business employees and the community are of similar cultural backgrounds. d.When legislation is passed requiring interaction.

a.Within a finite natural ecosystem.

Which of the following is not an example of stakeholders' economic power? a.A supplier halts shipments to a business customer that demanded very low prices. b.A social group protests a government's decision to raise taxes. c.A local community boycotts a grocery store suspected of inaccurate weight scales. d.An equal rights group refuses to do business with a company that has a discriminatory hiring policy.

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

Customers can exercise economic stakeholder power by: a.Voting on a proposed merger for the company and a competitor. b.Boycotting products if they believe the goods are too expensive. c.Attending the company's annual meeting. d.Applying for a job with the company. Feedback

b.Boycotting products if they believe the goods are too expensive.

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.

b.Power, legitimacy, and urgency.

Departments, or offices, within an organization that reaches 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.

c.Boundary-spanning departments.

Corporations that run their operations according to the stakeholder theory of the firm create value by: a.Innovating new products. b.Increasing their stock price. c.Developing their employees' professional skills. d.All of these answers are correct.

d. all the above

What kind of power might a local community use to influence a company's decisions? a.Publicizing an issue. b.Lobbying government policy makers for regulations. c.Challenging whether a specific business activity should continue. d.All of these answers are correct.

d. all the above

What stakeholder group(s) can exercise legal power? a.Employees. b.Customers. c.Shareholders. d.All of these answers are correct.

d. all the above

A stakeholder map is a useful tool because: a.It enables managers to quickly see how stakeholders feel about an issue. b.It can help managers evaluate possible outcomes regarding an issue. c.It helps managers discourage or dissolve stakeholder coalitions. d.Both of these answers are correct: It enables managers to quickly see how stakeholders feel about an issue, and It can help managers evaluate possible outcomes regarding an issue.

d.Both of these answers are correct: It enables managers to quickly see how stakeholders feel about an issue, and It can help managers evaluate possible outcomes regarding an issue.