Chapter 4 and 5 Exam

The utilitarian view of ethics suggests that anticipated outcomes and consequences should be the primary considerations when evaluating an ethical dilemma

True

Corporate takeovers

All of the above

Outsourcing efforts can fail because

All of the above

Social forces can

All of the above

The Internet

All of the above

When implemented properly, outsourcing can

All of the above

Which of the following is not a reason that the outsourcing/offshoring debate is difficult to resolve?

All of the above are reasons

The CEO also serving as chair of the board is known as

CEO duality

The country accounting for the greatest piece of the U.S. trade deficit is

China

Adverse selection exists when the parties in an arrangement do not share equally in the risks and benefits

False

Any purchase of a controlling quantity of shares of a firm by an individual, a group of investors, or another organization is known as a leveraged buyout (LBO)

False

Corporate takeovers have been supported because of their ability to reduce the debt of acquired firms

False

Creditors and suppliers typically share the same goals for the organization

False

Environmental scanning refers to the systematic analysis of a firm's social responsible activity related to environmental awareness

False

Goals are verifiable and specific, and are developed so that management can measure performance

False

On-line shoppers tend to be single, female, and college educated

False

Over the past several decades, the composition of the typical board has shifted from one controlled by insiders to one controlled by outsiders

False

Social responsibility refers to an individual's responsibility to make business decisions that are legal, honest, moral, and fair

False

The Internet fosters information asymmetry, a state whereby the seller and buyer are not likely to share the same information

False

The country accounting for the greatest piece of the U.S. trade deficit is Mexico

False

The rate of technological change varies considerably across industries in different nations, but generally not in the same nation

False

The unconscious reference to one's own cultural values as a standard of judgment is known as cultural discrimination.

False

When additional insiders are added to outsider-dominated boards, CEO dismissal is more likely when corporate performance declines

False

The attractiveness of diversification is consistent with which agency perspective?

Management serves its own interests

The preoccupation with firm growth is consistent with which agency perspective?

Management serves its own interests.

According to the notion of disaggregation and reaggregation

None of the above

Scientific improvements and innovations are examples of

None of the above

The CEO also serving as chair of the board is known as

None of the above

The ability to individualize product and service offerings to meet specific buyer needs is known as

None of the above

The attractiveness of downsizing is consistent with which agency perspective?

None of the above

The competing priorities of an organization's stakeholders are known as

None of the above

The idea that business firms should serve both society and the financial interests of the shareholders is known as

None of the above

When outsiders are added to insider-dominated boards

None of the above

Which of the following is not a strategic dimension of the Internet?

None of the above

Which view of ethics suggests that decisions should be based on existing norms of behavior, including cultural, community, or industry factors?

None of the above.

Individuals or groups who are affected by or can influence an organization's operations are called

Stakeholders

Which of the following might represent the goals of shareholders?

The company should produce a higher-than-average return on equity

Which of the following might represent the goals of customers?

The company should provide high quality products and services at the most reasonable prices possible

A situation in which a firm's managers fail to act in the best interest of the shareholders is known as the stakeholder dilemma

True

Commoditization refers to the increasing difficulty firms have distinguishing their products and services from those of their rivals

True

Corporate takeovers have been promoted as a system of checks and balances for firm management

True

Many companies limit the number of board memberships their own board members may hold

True

Mass customization refers to the ability to individualize product and service offerings to meet specific buyer needs

True

Objectives are specific, often quantified, versions of goals

True

Offshoring refers to relocating some or all of a firm's manufacturing or other business processes to another country to reduce costs

True

One of the reasons that outsourcing/offshoring debates are so difficult to resolve is that accurate data can be difficult to obtain, especially in developing nations

True

Outsourcing refers to contracting out a firm's non-core, non-revenue-producing activities to other organizations primarily to reduce costs

True

Reading the Wall Street Journal can be an integral part of environmental scanning

True

Social forces can vary markedly among nations, even those whose cultures are similar

True

The Internet acts as a distribution channel for many non-tangible goods and services

True

The process of disaggregation and reaggregation has resulted in an increased emphasis on partnerships

True

The triple bottom line refers to the notion that firms must maintain and improve social and ecological performance in addition to economic performance

True

When additional outsiders are added to insider-dominated boards, outsiders are more likely to pressure for corporate restructuring when performance is poor

True

Social responsibility and managerial ethics

are related, but different concepts

Which of the following is the largest form of electronic commerce?

business-to-business (B2B)

"Clicks and bricks" refers to

businesses that emphasize both Internet-mediated and traditional forms of business.

The increasing difficulty firms have distinguishing their products and services from those of their rivals is known as

commoditization

Auction facilitator eBay is an example of which form of electronic commerce?

consumer-to-consumer (C2C)

The decline in unit costs of a product or service that occurs as the absolute volume of production increases is known as

economies of scale

The systematic collection and analysis of information about relevant environmental trends is known as

environmental scanning

Which group of investors typically wields the greatest influence on the management of firms?

institutional investors

Which of the following is not a strategic dimension of the Internet?

movement toward information asymmetry

Relocating some or all of a firm's manufacturing or other business processes to another country to reduce costs is known as

offshoring

Over the past several decades, the composition of the typical board has shifted from

one controlled by insiders to one controlled by outsiders

Contracting out a firm's non-core, non-revenue-producing activities to other organizations primarily to reduce costs is known as

outsourcing

According to the notion of disaggregation and reaggregation

recent advances in Internet and related technologies, coupled with rapid economic development in parts of Asia and Eastern Europe, has enabled firms to reorganize work processes and improve efficiency

One of Friedman's primary arguments in The World is Flat is that

recent changes have "leveled the playing field" between firms in developed nations and those in developing nations

Societal values, trends, traditional, and religious practices are examples of

social forces

A common suggestion to align the goals of managers with those of the stockholders is to pursue

stock options

A purchase of a controlling quantity of shares of a firm by an individual, a group of investors, or another organization is known as a

takeover

A situation in which a firm's managers fail to act in the best interest of the shareholders is known as

the agency problem

The desired ends toward which efforts are directed comprise

the organization's goals

The unconscious reference to one's own cultural values as a standard of judgment is known as

the self-reference criterion