chapter 1

The term society is accurately defined by which of the following?

-A collective social structure -All of humankind -Nations and communities

The term business is accurately defined by which description(s)?

-Any firm that provides a service for a profit -Any organization that is engaged in making a product for a profit

The term stakeholder is correctly described by which of the following?

-Groups that affect an organization -Derives from having a claim on a business enterprise -Groups that are affected by an organization

The term stakeholder salience is correctly described by which statements?

-The greater the salience, the more the stakeholder will be noticed. -It refers to stakeholders standing out to managers when they have power, legitimacy, and urgency.

Nonmarket stakeholders include which of these groups?

Communities Business groups

Select all of the external stakeholders listed below.

Competitors Customers

A fruit grower has received many complaints about its heavy use of pesticides. Which stakeholders would likely form a coalition to support the grower?

Competitors who use similar pesticides Suppliers who provide pesticides

In which ways do businesses interact with society?

Consumers buy products. Businesses pay income taxes. Businesses employ workers.

What is the purpose of the firm under the shareholder theory of the firm?

To maximize its long-term market value

During stakeholder analysis, what is the first question that must be answered once an issue is identified?

Who are the relevant stakeholders?

Some argue that managers are not stakeholders of a firm because they _____.

act primarily for the company promote stakeholder interests, not their own

Market stakeholder relationships are based on ______.

an economic transaction

When individuals or groups play multiple stakeholder roles, this is called a(n) ______.

business role set

True or false: All stakeholders listed in an analysis will be relevant in every management situation.

false

Most theorists say that government is a nonmarket stakeholder because _____.

government does not normally conduct any direct market exchanges with business

The argument in favor of the stakeholder theory of the firm that says that it is more effective as a corporate strategy is ______.

instrumental

Within stakeholder analysis, the focal organization is the _____.

one from whose perspective the analysis is conducted

The horizontal axis of a stakeholder map represents each stakeholder's ______.

position on an issue

A stakeholder's ability to use resources to make an event happen is measured by the amount and type of their ______.

power

Owners of an organization are called ______.

shareholders stockholders

A few theorists have called the government a market stakeholder of business because _____.

some businesses sell directly to the government and receive payment for goods and services rendered

Some argue that managers are stakeholders of a firm because they _____.

-are impacted by a firm's decisions -are employed by the firm -benefit from the company

Which stakeholders' interests are most influential for a firm using the stakeholder theory of the firm?

All stakeholders' interests must be taken into account.

A valid business is illustrated by which example(s)?

An organization that markets tax services A major oil refinery A woman permitted to sell homemade tortillas by the roadside

When a supplier refuses to fill an order, it is using which type of stakeholder power?

Economic

The general systems theory states that businesses must do what to survive?

Form an interactive social system with society Be willing to change and evolve

Which boundary-spanning department would most likely interface with union representatives?

Human Resources

A customer posting a negative review of a purchased product is using which type of stakeholder power?

Informational

Explain the primary difference between internal and external stakeholders of a firm.

Internal stakeholders directly contribute their effort and skill inside the firm.

Which element of stakeholder salience refers to the degree of broad societal acceptance?

Legitimacy

A company called Trends plans to close a manufacturing plant in Community A and relocate it to Community B, where labor costs are lower. Which stakeholders are likely to oppose this plan?

Local government in Community A Employees in Community A

In addition to saying it's the right thing to do, this argument for the stakeholder theory of the firm claims that all stakeholders contribute value to the organization.

Normative

An example of a role set is when someone performs which action(s)?

Owns some company stock Works at a company Lives in the same community as their employer

The general systems theory is best described by which statement(s)?

Plants interacting with soil, light, oxygen, and moisture Organisms interacting with their external environment Organisms and their environment working together

An online shopping firm performs a stakeholder analysis to guide the firm in updating its website technology. Which stakeholder would be irrelevant?

Retailers

A firm called Star performs a stakeholder analysis of their supplier Deliveries, their competitor ShineOn, and their creditor LoanMe. Which firm is the focal organization?

Star