Global Business CH 1

Managers' understanding of government regulations is: A. Both a domestic and international issue. B. Primarily a domestic issue. C. Primarily an international issue. D. An international issue only for large firms

A

In a survey of 110 companies in 2014, the most frequent public affairs tactic was related to: A. Grassroots issues. B. Political action committees. C. Issues management. D. Federal government regulations

D

Lobbyists, under U.S. law, must disclose their: A. Political affiliation and expenses. B. Earnings. C. Expenses. D. Earnings and expenses.

D

when something stands out from a background is seen as important, or draws attention it is

salient

Natural capital refers to the world's: A. Supply of geology, soil, air, water and all living things. B. Combined stock ownership. C. Combined capital investments. D. Supply of sustainable developers

A

The information strategy tool most used by business is: A. Political contributions. B. Lobbying. C. Legal challenges. D. Direct communication.

B

Which political action strategy seeks to gain support from other affected organizations to better influence policymakers? A. Information strategy. B. Constituency-building strategy. C. Financial-incentive strategy. D. Lobbying strategy.

B

Which statement characterizes the moral reasoning typically found in a child? A. "When in Rome, do as the Romans do." B. "I'll let you play with my toy if I play with yours." C. "Seek the greatest good for the greatest number." D. "Respect the rights of others."

B. I'll let you play with my toy if i play with yours

The term "race to the bottom" refers to: A. Seeking to mine valuable minerals from the bottom of the ocean. B. Moving production jobs to the country with the lowest labor cost. C. Efforts to deconstruct the assembly process in manufacturing industries. D. An old concept of globalization that is no longer relevant.

B. Moving productions jobs to the country with the lowest labor cost

Under the U.S. Corporate Sentencing Guidelines, if a firm has developed a strong ethics program, corporate executives found guilty of criminal activity may have their sentence: A. Increased. B. Reduced. C. Unaffected. D. Decided by the company.

B. Reduced

Which of these activities is not considered to be a marine ecosystem threat? A. Overfishing. B. Ocean pollution. C. Coastal development. D. Ocean alkalinity

D

True or False: Most scholars agree that business must participate in politics

true

environmental intelligence is the acquisition of information gained from analyzing the multiple environment affecting organizations

true

for stakeholders engagement to occur both the business and the stakeholder must be motivated to work with one another to solve the problem

true

True or False: Public policy effects are always unintended consequences of an action

false

the external environment of business is static

false

an issues public profile indicated managers

how significant an issue is for the organization but doesnt not tell them what to do

contemporary issues management

is an interactive forward thinking process

True or False: Predatory pricing is a violation of antitrust laws.

true

True or False: Sometimes business people leave the private sector to take employment in government before returning to the corporate world.

true

market stakeholders include nongovernmental organization and the business support groups

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

False

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

True

the emergence of a public issue indicates that

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

The amount of land and water a human population needs to produce the resources it consumes and to absorb its wastes given prevailing technology is called: A. Ecological footprint. B. Technological innovation. C. Sustainable development. D. Consumption footprint.

A

A shared resource, such as land, air, or water, that a group of people uses collectively is a(n): A. Economic village. B. Collective resource. C. Global unification. D. Commons.

D

Economic regulations: A. Can only exist for 37 years unless renewed. B. Apply only to older industries. C. Always conflict with social regulation. D. Cut across industry lines.

D

Businesses are expected to be ethical in their relationships with: A. Stockholders. B. Customers. C. Competitors. D. All of the above.

D. All of the above

which statement is not correct about the business society interdependece

actions by government rarely affect business

True or False: Businesses and trade associations spend very little on lobbying

false

organizations always have full control of a public issues

false

the industrial 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

Which pattern of consumption is recommended to reduce humanity's global footprint? A. Buying goods from firms that always seek to maximize their profits. B. Choosing less harmful products. C. Building more transit stops on the outskirts of town. D. Eating more beef

B

A thin layer of gas that protects the earth from excessive ultraviolet radiation from the sun is: A. Ozone. B. Carbon dioxide. C. Methane. D. Oxygen.

A

Advocacy ads are also called: A. Issue advertisements. B. Research and development plans. C. Constituent advertisements. D. Price control advertisements.

A

Which of the following examples best illustrate an ethics issue based on cross-cultural contradictions? A. Legally marketing a pesticide abroad that has been banned in the U.S. B. Circumventing government regulations to ensure company profits. C. Hiring child workers in violation of civil law. D. False and misleading advertising claims.

A. Legally marketing a pesticide abroad that has been banned in the U.S.

Around the world, government: A. Tends to cooperate with business. B. Tends to be in conflict with business. C. Sometimes cooperates and sometimes is in conflict with business. D. Tends to be controlled by business

C

By promoting the use of clean cookstoves in developing nations, a global alliance hopes to reduce: A. Deforestation. B. The burning of fossil fuels. C. Black carbon. D. Methane.

C

T/F: In the United States, most ethics policies are primarily based on the company's mission and vision.

False

T/F: It is impossible for multiple ethical climates to exist within one organization

False

T/F: Only in the last few years have scholars found a positive relationship between an organization's economic performance and attention to spiritual values.

False

T/F: The majority of large U.S. corporations do not have codes of ethics.

False

the normative argument for the stakeholders theory of the firms says the stakeholder view is simply a more realistic description of how companies really work

False

T/F: Even small local businesses often compete with global companies from around the world.

TRUE

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

TRUE

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

TRUE

T/F: According to a recent Transparency International survey, Denmark and New Zealand are two countries that are least likely to be subjected to bribery.

True

T/F: According to utilitarian reasoning, an action is ethically preferred when its benefits outweigh its costs.

True

T/F: Being ethical includes developing a sense of trust, which promotes positive alliances among business partners.

True

a stakeholder analysis

involves understanding th enature of stakeholder interests

In 2012 the European Union imposed a carbon emissions fee on all airlines flying in and out of EU airspace that: A. Successfully raised funds through fees to limit greenhouse gas emissions. B. Garnered great support from the Chinese and U.S. governments. C. Generated great opposition from more than two dozen countries. D. Effectively eliminated greenhouse gas emissions in its airspace.

C

T/F: The Sarbanes-Oxley Act requires that firms maintain good financial practices, apart from high ethical standards, in how they conduct and monitor business operations.

True

T/F: The U.S. Corporate Sentencing Guidelines provide a strong incentive for businesses to promote their

True

stakeholders engagement is at its core a

realtionship

A company that channels employee behavior in a lawful direction by emphasizing the threat of detection and punishment is: A. Operating under the compliance-based approach. B. Practicing "tone at the top." C. Operating under the integrity-based approach. D. Operating under the instrumental policy approach.

A. Operating under the compliance based approach

A free enterprise system refers to: A. Economic assets that are privately owned and exchanged in an open market. B. Property ownership by a centralized government. C. A mix of privately owned and government controlled economic assets. D. An index of economic freedom

A. economic asset that are privately owned and exchanged in an open market

According to the United Nations, how many transnational corporations operate in the global economy? A. 49,000. B. 104,000. C. 290,000. D. 900,000

B. 104,000

Microfinance refers to: A. Banks lending money to a very small number of businesses. B. Banks lending money to low-income businesses. C. Banks lending very small amounts of money to wealthy businesses. D. Banks charging low fees for all business loans.

B. Banks lending money to low income businesses

Scholars found that spirituality: A. Negatively affects employee and organizational performance. B. Positively affects employee and organizational performance. C. Has no affect on employee and organizational performance. D. Only affects the employee performance of not for profit organizations.

B. Positively affects employee and organizational performance

People everywhere depend on ethical systems to tell them whether their actions are: A. Legal or illegal. B. Right or wrong. C. Financially attainable or not. D. Logical and reasonable judgment

B. Right or wrong

Representation on the World Bank's board of directors is based on: A. The size of the member nation's population. B. The size of the member nation's economy. C. The size of the member nation's land mass. D. Equal representation of all member nations.

B. The size of the member nation's economy

An organization that produces net zero emissions of greenhouse gases is achieving: A. Carbon offsets. B. Carbon credits. C. Carbon neutrality. D. Black carbon.

C

Economists reported that the costs of regulatory compliance were highest for: A. Vehicle safety. B. Antitrust issues. C. Worker safety. D. Consumer protection.

C

The Heritage Foundation scored which nation of the world among the most repressed in 2012? A. Hong Kong. B. Australia. C. North Korea. D. Singapore

C. North Korea

The three strategies of globalization can be summarized using what three words? A. Channels, operations, and chains. B. Export, locate, and purchase. C. Sell, make, and buy. D. Ethics, import, and sell.

C. Sell, make, and buy

The most important agreement which codifies human rights is the: A. The American Civil Liberties Act. B. The Versailles Treaty. C. The Universal Declaration of Human Rights. D. The U.S. Declaration of Independence.

C. The Universal Declaration of Human Rights

What U.S. company is the best example of using globalization to reduce the price of its products? A. K-Mart. B. Toys R Us. C. Walmart. D. Macy's.

C. Walmart

A common tactic in a financial-incentive political strategy is: A. Lobbying. B. Legal challenges. C. Expert witness testimony. D. Political contributions.

D

According to the United Nations, a feature of democracy is: A. Fair elections. B. An independent media. C. A government with power balanced among executive, legislative, and judicial branches. D. All of the above.

D. All of the above

Why should business be ethical? A. Most people want to act in ways that are consistent with their own sense of right and wrong. B. Ethical behavior protects business firms from abuse by unethical employees and competitors. C. Society's stakeholders expect it from businesses. D. All of the above.

D. All of the above

By law, the financial records of publicly held companies are required to be: A. Managed by an accounting department of at least five CPAs. B. Summarized in the employee manual for new hires. C. Reviewed quarterly by the IRS. D. Audited by a certified professional accounting firm.

D. Audited by a certified professional accounting firm

Which statement(s) below are true about global income? A. Income is how much one earns in a day or a year. B. Income at the bottom of the pyramid varies from place to place. C. Around 400 billion people globally sit at the bottom of the pyramid. D. Both A and B, but not C.

D. Both A and B, but not C

Which of the following is not an example of an ethical criterion? A. Egoism. B. Concern for others. C. Principle. D. Corporate driven.

D. Corporate driven

T/F: The importing of foreign goods by U.S. firms is called foreign direct investment.

TRUE

a leadership role in addressing emerging management issues is often taken by

all of the above

stakeholder groups can include

all of the above

public issues are also sometimes refereed to as

both a and b

a stakeholder map is a useful tool because

both a and b but not c

which of the follwing is the result of the inseperable relationship between business and soiety

both a and b but not c

a corporation issue management activities are usually linked to

both the board of directors and top management levels

department or offices within an organization that reach across the dividing line that separated the company

boundary spanning departments

which argument says that stakeholders management realistically depicts how companies really work

descriptive argument

according to management scholar Karl, scanning to aquire environmental intelligence should focus on

eight strategic radar screens

the main reason a number if European countries require public companies to include employee members on their boards of directors is so that

employees interests will be explicitly represented

over time the nature of business relationship with its stakeholders often

evolve through a series of stages

Government can be considered both a market and non market stakeholder

true

Which of these factors has accelerated the current ecological crisis? A. Population reduction. B. World income equality. C. Rapid industrialization. D. All of the above.

B

European Union regulators accused Uber of engaging in: A. Price-fixing. B. False advertising. C. Unfair competition. D. Unhealthy working conditions.

C

T/F: Business cannot expect to be profitable while adhering to ethical principles of conduct.

False

T/F: Business must develop its own definition of what is right and wrong, apart from ethics.

False

T/F: In most companies, a moral atmosphere cannot be detected.

False

True or False: A cooperative government-business relationship on one issue does not guarantee cooperation on another issue

true

The Mullahs in Iran is an example of the power of government derived from: A. A monarchy. B. A military dictatorship. C. A religious authority. D. A democracy

A

The commitments of the Convention on Biological Diversity include: A. Developing national conservation strategies. B. Eliminating CFC production. C. Population control education. D. Massive irrigation projects in developing countries.

A

To help control political favoritism, there have been global efforts to: A. Promote fairness in the electoral process. B. Control the rapid decrease in campaign costs. C. Diminish the role of political parties. D. Discourage grassroots participation.

A

To influence government policymakers' actions, an information strategy involves: A. Business leaders speaking before government policymakers. B. Government policymakers hiring special interest groups for fact-finding projects. C. Businesses listening to government policymakers in order to develop a corporate strategy. D. Gaining support from other affected organizations

A

Which of the following is not a constituency-building strategy tool? A. Expert witness testimony. B. Advocacy advertising. C. Public relations. D. Legal challenges.

A

Which of the following represents a structural remedy for an antitrust violation? A. Paying a large fine. B. Breaking up a monopoly. C. Disclosure of company information to rivals. D. Agreeing to change a firm's conduct.

A

Global market channels involve a firm producing goods in: A. Their home country and exporting them to other countries. B. Their home country to sell at home. C. A foreign country to sell at home. D. A foreign country to sell abroad.

A. Their home country to sell at home

Deregulation has occurred in the following industries: A. Commercial airlines, sheet metal, and interstate trucking. B. Commercial airlines, railroads, and financial institutions. C. Commercial airlines, interstate trucking, and silicon chip manufacturing. D. Financial institutions, railroads, and silicon chip manufacturing.

B

All of the following values are present in most ethical decisions except: A. Be fair and just. B. Be kind. C. Act responsibly. D. Be honest.

B. Be kind

As an additional employee benefit to promote spirituality, companies have begun to provide employees with the services of: A. Philosophers. B. Chaplains. C. Financial advisors. D. Ombudspersons

B. Chaplains

Integrity-based ethics programs: A. Seeks to avoid legal sanctions. B. Combines concern for the law with an emphasis on employee responsibility. C. Threatens employees with punishment for non-compliance with the ethics program. D. Are predominately implemented within the European Union.

B. Combines concern for the law with an emphasis on employee responsibility

Economic leverage occurs when a business uses it economic power to: A. Hire lobbyists to gain a desired political action. B. Pay for the costs of regulation to acquire a desired political action. C. Threaten to leave a location unless a desired political action is taken. D. Buyout another firm to acquire a desired political action.

C

Expert witness testimony is often collected: A. Through company newsletters. B. On the steps of the White House. C. In Congressional hearings. D. From The Wall Street Journal

C

Patterns of government taxing and spending that are intended to stimulate or support the economy are: A. International standards policies. B. Social assistance policies. C. Fiscal policies. D. Monetary policies.

C

The idea that companies have a continuing responsibility for the environmental impact of their products or services, even after they are sold is called: A. Life-cycle analysis. B. Product life responsibility. C. Extended product responsibility. D. Extended product commitment.

C

The primary way of accomplishing public policy is through: A. Waiting for businesses to act. B. Lobbying Congress. C. Regulation. D. Writing your politician.

C

Total social regulation costs are: A. Slightly higher than total economic regulation costs. B. Slightly less than total economic regulation costs. C. Significantly higher than total economic regulation costs. D. Equal to total economic regulation costs.

C

When a government orders companies not to conduct business in another country because of a war, human rights violations, or lack of a legitimate government; these orders are called: A. Government bailouts. B. Political sanctions. C. Economic sanctions. D. Government stop-orders.

C

When managers become personally involved in developing public policy, the firm is at what level of business political involvement? A. Limited organizational involvement. B. Moderate organizational involvement. C. Aggressive organizational involvement. D. Holistic organizational involvement.

C

When the market fails to adjust for the full costs of a firm's behavior, this is called: A. Negative externalities. B. Deregulation. C. Market failure. D. Re-regulation.

C

A just or fair ethical decision occurs when: A. The rights of all affected are considered. B. The greatest good for those with power is achieved. C. Benefits and burdens are distributed equally. D. All of the above

C. Benefits and burdens are distributed equally

All of the following are commitments of the Principles of the Code of Professional Conduct of the American Institute of Certified Public Accountants except: A. The Public Interest. B. Objectivity and Independence. C. Due Process. D. Due Care.

C. Due Process

Business managers need a set of ethical guidelines to help them: A. Understand the changing customs throughout the world. B. Justify the resolution which best helps them. C. Identify and analyze the nature of the ethical problem. D. None of the above

C. Identify and analyze the nature of the ethical problem

The SEC filed civil false-certification charges against which U.S. financial institution? A. Wells Fargo. B. Countrywide. C. J.P. Morgan Chase. D. Bear Stearns

C. J.P. Morgan Chase

A giant step is taken toward improving ethical performance throughout the company when: A. The firm hires a university ethics professor to lecture employees on moral philosophy. B. The Justice Department launches an investigation of the firm's pricing practices. C. Senior-level managers signal to employees that they believe ethics is a high priority. D. A consumer hot line is created and staffed 24 hours a day

C. Senior-level managers signal to employees that they believe ethics is a high priority

A critic of globalization might argue that companies decide to manufacture in China mainly because of China's: A. Strict law enforcement. B. High environmental standards. C. Weak health and safety regulations. D. Strong worker unions

C. Weak heath and safety regulations

Building ethical safeguards into a company's everyday routines is called: A. Change management. B. Justifying ethics. C. Institutionalizing ethics. D. Ethical awareness.

C. institutionalizing ethics

Businesses promote an information strategy by inviting government leaders to: A. Visit local plant facilities. B. Attend company award ceremonies. C. Give speeches to employees. D. All of the above.

D

Government's role is to create and enforce laws that: A. Control businesses' actions in society. B. Protect businesses' interest in society. C. Protect society from business. D. Balance the relationship between business and society.

D

Hiring former government officials for positions in the corporate world is: A. Normally legal. B. Always unethical. C. Considered unethical by over 50% of Americans. D. A and C, but not B.

D

Policies that affect the supply, demand, and value of a nation's currency are: A. International standards policies. B. Social assistance policies. C. Fiscal policies. D. Monetary policies.

D

Proponents of business as a political participant argue: A. A pluralistic system invites many participants. B. It is business's constitutional right to be involved. C. Business is a vital stakeholder of government. D. Both A and C, but not B.

D

Public policies and government regulations are shaped by: A. Business. B. Special interest groups. C. Government. D. All of the above.

D

Which of these statements accurately describes a Super PAC? A. Allows limited contributions from unions. B. Allows limited contributions from individuals. C. Is also called the dependent expenditure-only committee. D. Does not allow direct contributions to candidates or political parties.

D

Why is income inequality an environmental problem? A. People in the richest countries consume many natural resources. B. People in the poorest countries often misuse natural resources. C. People in the richest countries have strong environmental values. D. Both A and B, but not C.

D

Which of the following statements accurately describe the practice of tax inversion? A. A company shifts their headquarters to a foreign country. B. A company decreases cash holdings in a foreign country. C. A company increases debt in their home country. D. Both A and C, but not B.

D. Both A and C, but not B

If a manager approaches ethical issues with a self-centered approach, emphasis will be on: A. Integrity. B. Social relationship. C. Economic efficiency. D. Laws.

D. Economic efficiency

Ethisphere Magazine recognizes and rewards ethical leadership and business practices worldwide according to their: A. Regulatory Percentage Track (RPT). B. Ethics and Leadership Radar (ELR). C. Quality Measurement (QM). D. Ethical Quotient (EQ).

D. Ethical Quotient (E.Q.)

The primary goal of a "vulture fund" is to: A. Provide countries with debt-relief. B. Pay back loans in default. C. Increase global financial stability. D. Make a profit.

D. Make a profitt

Business executives are finding that a trusting, ethical relationship with a business partner is: A. Best left to not-for-profit companies. B. Too costly to maintain. C. Likely to cause legal problems. D. Often essential in conducting business.

D. Often essential in conducting business

T/F: Personal values and moral character play key roles in improving a company's ethical performance.

True

what kind of power might a local community use to influence a company's decision

all of the above

which of the following examples best illustrate the boundary exchanges a company would encounter according to the general system theroy

all of the above

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

all of the above

customers can exercise economic stakeholder power by

boycotting products if they believe the goods are too expensive

As business becomes increasingly global: A. It must turn to national laws for guidance. B. Ethical issues become issues of free trade. C. A global code of conduct will emerge for businesses. D. Cross-cultural contradictions will increase.

d. Cross -cultural contradictions will increase

True or False: . Various stakeholder groups often use far different tactics than businesses to influence government officials, elections, and regulation.

false

True or False: A Super PAC is a financial-incentive political strategy tool.

false

True or False: A national health care policy is an example of an economic policy.

false

True or False: About 20 percent of the world's people have incomes below the international poverty line

false

True or False: Biodiversity refers to the number and variety of species that have become extinct

false

True or False: Businesses must wait for a public issue to arise before forming a political strategy.

false

True or False: Businesses should stick to pursuing profits and have no legal right to be engaged in political activities.

false

True or False: Firms are more likely to have a sophisticated political strategy when the company is a frequent target of public scrutiny.

false

True or False: Government and business together establish the regulatory rules under which business operates in society.

false

True or False: In many countries, the political environment has a select few participants.

false

True or False: Land, even when properly cared for, is not a renewable resource.

false

True or False: Plants and animals living as a natural unified system are called an ecosystem

false

True or False: Public policy is a plan of action undertaken by business to influence the government.

false

True or False: Rain forest destruction is controversial because these environments are more valuable cut down than standing

false

True or False: The United Nations oversees all international agreements concerning regulations between nations.

false

True or False: The paradox of the commons is that if all individuals attempt to maximize their own private advantage in the short term, the commons will still remain productive in the long run.

false

True or False: The world's income is distributed equally among nations

false

True or False: When a manager directly employs a lobbyist to represent the company's political strategy in Washington this is called aggressive organizational involvement in politics.

false

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

false

because the public issues that garner the most public attention change over time, companies do not waste time tracking them

false

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

false

financially sound companies do not need to understand how a public issue is likely to evolve or how it will affect them

false

legal environment includes the structure process and ations of government at the local state national and international

false

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

false

the drivers of stakeholder of engagement are

goals motivation and operational capacity

with the explosive growth of technologies that facilitate the sharing of information, this kind of stakeholder power has become increasingly important

informational power

firms that generally act only when forced to do so and then in a defensive manner are

reactive companies

stakeholders engagement is

the process of ongoing relationship building between business and its stakeholders

True or False: . Regulatory activity often is cyclical.

true

True or False: Cost-benefit analysis is often used to determine the costs of regulation.

true

True or False: Life-cycle analysis involves collecting information on the lifelong environmental impact of a product, all the way from extraction of raw material, to manufacturing, to its distribution, use and ultimate disposal.

true

a stakeholder map is a usefule tool, becasue it enables managers to see quickly how stakeholders feel about an issue and whether salient stakeholders tend to be in favor or opposed

true

companies are learning that it is important to take a strategic approach to the management of public issues both domestically and globally

true

competitive intelligence enables managers in companies of all sixes to make informed decisions in all areas of the business

true

Cooperation between business and government often occurs when: A. They encounter a common problem or enemy. B. Business can afford it. C. Business operates at arm's length from the government. D. Government has the support of the people.

A

Deregulation is often: A. A politically popular idea. B. A politically unpopular idea. C. Seen during a Democratic federal administration. D. Found in European countries but not in the United States

A

Governments being asked to regulate driving distractions are examples of a public policy: A. Input. B. Goal. C. Effect. D. Tool.

A

One of the oldest financial-incentive strategy tools is: A. Political action committee contributions. B. Political consulting aid. C. Advocacy advertising. D. Lobbying.

A

Which of the following are examples of natural monopolies? A. Electric utilities and railroads. B. Cable television and the media. C. Internet services and trucking. D. None of the above

A

Which of the following statements is not true about arable land? A. It is a nonrenewable resource. B. Over 20 percent of the irrigated lands in developing countries have been salinized. C. Poor farming practices have caused arable lands to turn into deserts. D. Soil erosion has threatened many of the arable lands.

A

Which of the following statements is not true about the population? A. Over the next century, population growth is expected to be greatest in developed nations. B. For many thousands of years, population growth was gradual. C. Industrial production would have to quintuple over the next 40 years in order to maintain the same living standard that people have now, given expected population growth. D. Just 10,000 years ago, the earth was home to no more than 10 million humans, scattered in small settlements.

A

The primary purpose of the International Monetary Fund is to: A. Lend foreign currency to member countries. B. Exchange one currency for another. C. Consolidate the debt facing third world nations. D. Collect the interest on loans made by the World Bank to third-world nations.

A. Lend foreign currency to member countries

In 2011, the Global Electoral Organization (GEO) discussed which critical election administration issues? A. How to disengage electoral stakeholders. B. The role of the media in elections. C. How to increase election disputes. D. How to hide dark money contributions.

B

In recent annual Harris polls, which entity did Americans believe had the greatest amount of political power? A. Small businesses. B. Large businesses. C. Political action committees. D. Lobbyists.

B

Life-cycle analysis involves: A. Accurately recording the production costs at each stage of a product's life cycle. B. Collecting information regarding the lifelong environmental impact of a product, from extraction to disposal. C. Reducing recycling costs for disposable products. D. Increasing productivity while improving the environment.

B

Regulation can be argued as justified based on: A. Collective market theory. B. Utilitarian and justice grounds. C. The life cycle of regulation. D. Tradition.

B

When a firm solicits its stockholders for political contributions for a particular candidate by letter and then sends those contributions to the candidate on behalf of its stockholders, it is called: A. Lobbying. B. Bundling. C. Collating. D. Constituency building.

B

Which of the following is an example of industrial ecology in practice? A. Developing a paper recycling program in business offices. B. Using wastes from one process as raw materials for another process. C. Manufacturing recyclable containers for products. D. All of the above.

B

A firm that has global operations has: A. All of their manufacturing and service operations abroad. B. Some or all of their manufacturing or service operations abroad. C. Manufacturing but not service operations abroad. D. Service but not manufacturing operations abroad.

B. Some or all of their manufacturing or service operations abroad

A company that builds stakeholder coalitions to influence government is using which strategy? A. Informational. B. Financial-incentives. C. Constituency-building. D. Friendly forces.

C

A corporate political strategy does not: A. Hinder a competitor's ability to compete economically. B. Seek to continue the firm's economic survival or growth. C. Determine the legal limits allowed for campaign financing. D. Exercise a firm's right to a voice in government affairs.

C

Sustainable development: A. Meets the needs of the present while compromising the ability of future generations to meet their own needs. B. Gives precedence to environmental over economic considerations. C. Balances economic and environmental considerations. D. Gives precedence to present needs over future needs

C

The beverage industry's partnership Refrigerants Naturally! is attempting to: A. Reduce water usage. B. Increase the amount of arable land in use. C. Reduce the use of ozone-depleting chemicals. D. Increase the consumption of natural beverages.

C

The core idea(s) of sustainable development is(are): A. Economic development must be accomplished sustainably. B. Poverty is an underlying cause of environmental degradation. C. Affluence is an underlying cause of environmental degradation. D. Both A and B, but not C.

C

What method(s) did the businesses opposed to Arkansas' "religious freedom" laws use to influence lawmakers? A. Filed a lawsuit. B. Made public announcements. C. Hired private lobbyists. D. Both B and C, but not A.

C

When a business seeks to overturn a law after it has been passed or threatens to challenge the legal legitimacy of the new regulation in the courts, this is called: A. Accumulating. B. Overturn lobbying. C. Legal challenges. D. Funneling.

C

Cross-cultural contradictions arise due to: A. The emergence of a developing country's economic power. B. Religious differences practiced by business executives. C. Differences between home and host countries' ethical standards. D. All of the above.

C. Differences between home and host countries ethical standards

Experts attribute the growth of nongovernmental organizations to: A. The creation of global stock exchanges and enhanced currency transactions. B. The globalization of marketing and converging consumer preferences. C. Greater openness in many societies. D. All of the above.

C. Greater openness in many societies

Business managers need a set of ethical guidelines to help them: A. Understand the changing customs throughout the world. B. Justify the resolution which best helps themselves. C. Identify and analyze the nature of ethical problem. D. None of the above.

C. Identify and analyze the nature of ethical problem

Aristotle argued: A. Self-control is the most virtuous of values. B. Faith is a road to charity and modesty. C. Moral virtue is a mean between two virtues. D. High-mindedness delivers human integrity.

C. Moral virtue is a mean between two virtues

A firm that would like to develop a global supply chain would: A. Manufacture components or supplies in other countries. B. Sell raw materials, components or supplies produced at home abroad. C. Purchase raw materials, components, or supplies from sellers in other countries. D. Check products that were manufactured abroad for defects in their home country.

C. Purchase raw materials, components, or supplies from sellers in other countries

Assets that a person accumulates and owns at a certain point in time are called: A. Income. B. Equity. C. Wealth. D. Microfinance.

C. Wealth

An example of codes of environmental conduct that have been developed by and for specific industries include: A. The Equator Principles. B. The Forest Stewardship Principles. C. The Greenhouse Gas Protocol. D. A and B but not C.

D

Both large and small businesses have adopted sustainable practices to what advantage: A. Cost savings from operational efficiency. B. Opportunity to serve emerging economies. C. Reduction of regulatory risk. D. All of the above.

D

By raising and lowering the interest rates at which private banks borrow money from the government, the Federal Reserve Bank: A. Influences the size of the nation's money supply. B. Influences the value of the dollar. C. Minimizes investor confidence about the nation's future. D. Both A and B, but not C

D

Dark money refers to: A. Anonymous contributions to for-profit organizations. B. Money collected illegally by PACs. C. Soft money. D. Undisclosed contributions to tax-exempt organizations.

D

Past decisions of the courts, the original basis for the U.S. legal system, are called: A. Torts. B. Amendments. C. Legitimate actions. D. Common laws.

D

Reasons for the destruction of rain forests include: A. Commercial logging. B. Cattle ranching. C. Conversion of forests to plantations. D. All of the above.

D

Supporters of advocacy advertisements believe that they: A. Identify a company as an interested and active stakeholder. B. Can help mold public opinion on a particular policy issue. C. Increase union activity and long-term expenses for an organization. D. Both A and B, but not C.

D

The Sustainability Consortium organized to advance life-cycle analysis for thousands of products includes all of the following companies except: A. Walmart. B. SAP. C. Alcoa. D. Google.

D

The typical public affairs executive spends most of the day: A. Coalition building. B. Direct lobbying. C. Fund raising. D. All of the above.

D

Which of the following is not an example of a social regulatory agency? A. Consumer Product Safety Commission. B. Equal Employment Opportunity Commission. C. National Highway Traffic Safety Administration. D. National Labor Relations Board.

D

The reason(s) behind the uncertainty of an ethical or unethical decision is (are) that different people and groups: A. May honestly and genuinely use different sources of information. B. May rank various rights in different ways. C. May not share the same meaning of justice. D. All of the above.

D. All of the above

Mature adults typically base their ethical reasoning on broad principles and relationships such as: A. Human rights and constitutional guarantees of human dignity. B. Universal principles of justice. C. Customs and traditions show by their peers. D. Both A and B, but not C

D. Both A and B, but not C

Which U.S. Act prohibits executives representing U.S.-based companies from paying bribes to foreign government officials, political parties, or political candidates? A. The USA Patriot Act. B. The U.K. Bribery Act. C. The Corruption of Foreign Officials Act. D. The U.S. Foreign Corrupt Practices Act.

D. The U.S. Foreign- Corrupt Practices Act

T/F: Critics of globalization support the spread of American ideals and culture throughout the rest of the world.

FALSE

T/F: Globalization is accepted worldwide and creates little controversy.

FALSE

T/F: Most nations in the world share similar political, social and economic beliefs.

FALSE

T/F: Only manufacturing jobs are being lost through globalization.

FALSE

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

FALSE

T/F: The World Trade Organization conducts negotiations, called "cycles," on various topics, rotating its meetings among different cities

FALSE

T/F: The main purpose of inversion is to reduce corporate income tax obligations

FALSE

T/F: Ethics are primarily based on religious beliefs.

False

T/F: Managers in the same company are likely to be at the same stages of moral reasoning at any given time.

False

T/F: Although many firms conduct business across national boundaries, most global commerce is carried out by a small number of powerful firms.

TRUE

T/F: At the beginning of the 20th century, no country in the world had universal suffrage.

TRUE

T/F: Productivity rises more quickly when countries produce goods and services for which they have a natural talent

TRUE

T/F: The term sector refers to broad divisions of a whole.

TRUE

A business is any organization that is engages in marketing a product or providing a service for a profit

True

T/F: Business managers should use all four methods of ethical reasoning - virtues, utility, rights and justice - to better understand ethical issues at work.

True

T/F: Ethical ideas are present in all societies, all organizations, and all individual persons.

True

T/F: For managers who reason at stages 2 and 3, their personal rewards, recognition from others, or compliance with the company's rules become their main ethical compass.

True

T/F: Honesty, integrity and accuracy are absolute requirements of the accounting function.

True

T/F: If all people relied on ethical relativism, there would be no universal ethical standards on which people around the globe could agree.

True

T/F: In a benevolence ethical climate, the interests of the company's employees and external stakeholders most likely would be given high priority.

True

T/F: Managers, as major decision-makers, are one of the keys to whether a company will act ethically or unethically.

True

coproration that run their operation according to the stakeholder theory of the firm create value by

all of the above

True or False: In Europe, unions are prohibited by law to be on businesses' administrative boards.

false

True or False: Regulation cannot be applied to international business behavior.

false

the stakeholder theory fo the firm argues that a firm sole purpose is to create value for its shareholders

false

urgency refers to the exact to which a stakeholders's actions are seen as proper or appropriate by the broader society

false

the issue management process has how many stages

five

firms that believe they can make decisions unilaterally without taking into consideration their impact on others are

interactive companies

when a community group sues a company for health effects caused by insafe disposal toxic chemicals, this is an exercise of a stakeholders

legal power

all of the following are external stakeholder of the firm except

managers

the instrumental argument says stakeholders management is

more effective as a corporate strategy

proactive companies are

much less likely to be blindsided by crises and negative suprises

which one of the following is considered to be a non market stakeholder of business

nongovernmental organizations

the phenomenon of a person or group holding multiple stakeholders duties is referes to as

role sets

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

shareholders

the role of special interests groups is an important element in acquiring intelligence from the

social environment

True or False: In non-democratic countries, the power of government may derive from a monarchy, military dictatorship, or religious authority.

true

True or False: Labor unions have been an active participant in United States politics for decades.

true

True or False: Monetary policies refer to policies that affect the supply, demand and value of the nation's currency.

true

True or False: Offshore wind turbines, genetic engineering and energy-efficient homes are examples of smart consumption

true

True or False: Sometimes national leaders resist the notion of international regulation, seeking to control matters of commerce themselves within their own countries.

true

With respect to fresh water, according to one estimate, if it were possible to eliminate pollution, capture all available fresh water, and distribute fresh water equitably: A. Demand would exceed supply within a hundred years. B. There would be a balance between demand and supply within a hundred years. C. Supply would exceed demand within a hundred years. D. None of the above.

A

A society where economic power is concentrated in the hands of government officials and political authorities is called: A. A central state control system. B. A social democracy. C. A political control system. D. A military dictatorship.

A. A central control system

Which ethical criterion is described by the idea that a company should strive for efficiency? A. Egoism. B. Benevolence. C. Principle. D. Business-centered

A. Egoism

The unspoken understanding among employees of what is and is not acceptable behavior is called: A. Ethical climate. B. Efficiency. C. Success. D. Rites and rituals

A. Ethical climate

If a manger approaches ethics with benevolence in mind, he or she would stress what? A. Friendly relations with an employee. B. Company rules and procedures. C. Laws and professional codes. D. Economic efficiency

A. Friendly relations with an employee

Under the Sarbanes-Oxley Act, corporations are required to: A. Have executives vouch for the accuracy of a firm's financial reports. B. Have their audit committee comprised of only executives employed by the firm. C. Collect reimbursements from the U.S. government if financial restatements occur. D. All of the above.

A. Have an executive vouch for the accuracy of a firm's financial reports

The theory of comparative advantage states that: A. Productivity rises more quickly when countries produce goods and services for which they have a natural talent. B. Productivity decreases when countries produce goods and services based on their natural resources. C. All countries start out on an equal playing field. D. Countries that operate under a policy of isolationism have a comparative advantage

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

Which of the following is not true about justice reasoning? A. The reasoner is interested in the net value of benefits. B. The reasoner considers who pays the costs and who receives the benefits C. The reasoner seeks a fair distribution to all affected. D. The reasoner relies upon some accepted rule or standard.

A. The reasoner is interested in the net value of benefits

When the benefits of an action outweigh its costs, the action is considered ethically preferred according to: A. Utilitarian reasoning. B. Virtue ethics. C. Theological reasoning. D. Plato and Aristotle.

A. Utilitarian reasoning

. Which of the following illustrates the idea of sustainable development through technology cooperation? A. Worldwide conferences to encourage developing countries to invest in technological joint ventures with other developing countries. B. The development of long-term partnerships between companies in developed and developing countries to transfer environmental technologies. C. Advanced countries developing and selling at a profit environment technologies to developing countries. D. All countries developing their own environmental technology in order to solve their own problems.

B

An example of a regulatory agency charged with enforcing social regulation is: A. Federal Aviation Administration. B. Federal Trade Commission. C. Federal Communications Commission. D. Internal Revenue Service.

B

Firms in the chemical industry, which must contend with frequently changing environmental regulations and the risk of dangerous accidents, usually have: A. No defined political strategy. B. A sophisticated political strategy. C. A political strategy focused on intellectual property rights. D. A political strategy focused on licensing rights.

B

Governments hold the power to: A. Grant permission for only specific business activity. B. Grant or refuse permission for many types of business activity. C. Refuse permission for only government funded activity. D. None of the above.

B

Which of the following is not true about rain forests? A. They are the planet's richest areas in terms of biological diversity. B. They will be severely depleted within the next eight years. C. They account for about seven percent of the earth's surface. D. They account for somewhere between 40 to 75 percent of the earth's species.

B

Which of these cost-savings measures saved U.S. regulatory agencies nearly $2 billion since 2011? A. Promotion of telemedicine in rural areas. B. Coordination of hazards warning with other nations. C. Removal of redundant reporting requirements. D. All of the above.

B

The most successful global businesses in coming years will be those companies that: A. Develop short-term partnerships between companies in developing countries to transfer environmental technologies. B. Recognize the imperative for sustainable development as an opportunity both for competitive advantage and ethical action. C. Avoid fully accounting for environmental costs in calculating measures of production such as the gross domestic product (GDP). D. Produce products with a limited useful life

B www

Under the World Trade Organization's most-favored nation rule: A. All import restrictions imposed by other nations on their goods are illegal unless a cultural waiver is issued. B. All import restrictions are illegal unless proven scientifically. C. Most-favored nations can impose heavy tariffs on other nations. D. Most-favored nations can oppose the dumping of goods by any nation in their home market

B. All import restrictions are illegal unless proven scientifically

The purpose of the World Trade Organization is to: A. Impose barriers to free trade among nations. B. Eliminate barriers to free trade among nations. C. Develop trading partnerships between rich and poor nations. D. Decrease globalization and free trade

B. Eliminate barriers to free trade among nations

Ethics policies typically cover all of the following issues except: A. Developing guidelines for accepting or refusing gifts from suppliers. B. Encouraging discriminatory personnel practices. C. Avoiding conflict of interest. D. Maintaining the security of proprietary information.

B. Encouraging discriminatory personnel practices

Recipients of the corporate ethics awards show that: A. Awards are based on economic power, not ethical performance. B. Firms can be financially successful and ethically focused. C. Being legally compliant results in receiving an ethics award. D. Improving ethical performance is very costly, but bolsters a firm's reputation

B. Firms can be financially successful and ethically focused

Most ethics or compliance officers are generally entrusted to: A. Act as a liaison between the company and the Securities and Exchange Commission. B. Reduce the risks to the company of employee misconduct. C. Annually distribute copies of the company's code of ethics to all interested stakeholders. D. Arrange for ethics training for employees at a nearby university.

B. Reduce the risk to the company of employee misconduct

At the core of rights reasoning is the belief that: A. The company's right to a profit must be protected. B. Respecting others is the essence of human rights. C. The right to join a union is no longer universally accepted. D. Economic and political powers determine who is right.

B. Respecting others is the essence of human rights

A conception of right and wrong is: A. Impossible to know. B. The definition of ethics. C. Determined by power. D. Based on stakeholder dialogue.

B. The definition of ethics

Single-party rule by communist parties still remains in: A. Lithuania. B. Vietnam. C. Thailand. D. Russia.

B. Vietnam

A bottom-line mentality in business is reflected in which statement? A. "I want it." B. "We have to beat the others at all costs." C. "Help yourself and those closest to you." D. "Foreigners have a funny notion of what's right and wrong."

B. We have to beat the others at all costs

Antitrust laws protect consumers from: A. Anticompetitive practices by business. B. Selling products above cost to drive away rivals. C. Conspiring with business partners to increase competition. D. Firms using market dominance to expand commerce.

C

Public policy tools involve a combination of: A. Incentives and political favors. B. Penalties and prison terms. C. Incentives and penalties. D. Political favors and prison terms.

C

Rapid economic development is often accompanied by: A. Increasing population growth. B. Greatly decreased crop yields. C. Rising incomes, bringing higher rates of both consumption and waste. D. Decreasing incomes, bringing rates of both consumption and waste.

C

Reregulation is: A. The adoption of regulation in another country to promote trade. B. Necessary since all regulation has a time limit. C. The increase or expansion of government regulation. D. The shifting of regulation to the state level from the national level.

C

Scientists believe that if the Montreal Protocol is honored the ozone layer will recover by: A. 2015. B. 2035. C. 2050. D. Never

C

Since 2011, the total amount spent on lobbying activity has: A. Remained exactly the same. B. Doubled. C. Decreased slightly. D. Increased slightly.

C

An example of a Global Action Network, or GAN, is: A. The World Trade Organization. B. Nongovernmental organizations. C. The Kimberley Process. D. The Heritage Foundation.

C. The Kimberly Process

People's ethical beliefs come from: A. Legislative action and judicial decisions. B. Reading the company's profit and loss statements. C. Their religious background, family, and education. D. The organization's code of ethics

C. Their religious background, family, and education

Which of the following statements is(are) true about global warming? A. The earth has already warmed by between 0.7 and 1.1 degrees Celsius over the past century. B. Burning fossil fuels is the leading contributor of global warming. C. The amount of greenhouse gases in the atmosphere has increased by as much as 40 percent since the Industrial Revolution. D. All of the above.

D

The percentage of global wealth concentrated at the Bottom of the Pyramid is: A. 8 percent. B. 22 percent. C. 60 percent. D. 70 percent.

D. 70 percent

An example of an international financial and trade institution is: A. World Bank. B. International Monetary Fund. C. World Trade Organization. D. All of the above

D. All of the above

An individual who is a supporter of globalization would argue that it helps the developing world by: A. Giving entrepreneurs access to foreign investment funds to support economic development. B. Allowing new ideas and technological innovations to spread quickly. C. Providing people in developing countries with more jobs. D. All of the above.

D. All of the above

Government has distinctive resources and competencies including: A. Knowledge of public policy. B. Ability to enforce the rules. C. Revenue from taxation. D. All of the above.

D. All of the above

Business and society and independent of one another

False

T/F: All ethics issues in business are the same.

False

T/F: An ethical egoist acts for the benefit of others and sacrifices self-interest.

False

T/F: The American Institute of Certified Public Accountants Code directs accountants to be responsible to their clients and their profession, but not to the public.

False

which of the following id not an example of stakeholder economic power

a social group protests a government's decisions to raise taxes

because of the risks and opportunities public issues present organizations need

a systematic way of identifying monitoring and selecting public issues

A purchasing agent directing her company's orders to a firm which she received a valuable gift, is an example of: A. Conflict of interest. B. Ethical relativism. C. Moral development. D. Egotism.

a. Conflict of interest

the components of a typical issue management process include

all of the above

the fiduciary duty of managers benefit a froms

all of the above

what stakeholder groups can exercise legal power

all of the above

once an issue has been identifies it implications must be

analyzed

failure to understand the beliefs and expectations of stakeholders

cause the performance- expectation gap to grow larger

stakeholders have been able to form international coalitions more successfully through use of

communication technology

legal environmental intelligence inclued

consideration of patents copyrights or trademarks

when working well the issue management process

continuously cycles back the beginning and repeats

which of the following is not considered to be a nonmarket stakeholder

creditors

the explosive use of social media is an example of

customer envirment

customer environmental intelligence include

demographic factors

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

political enviorment

stakeholders stand out to managers when they exhibit

power. legitimacy. and urgency

the relevance and importance of stakeholders and their issues is known as

stakeholder materiality

once an organization has implemented the issue management program, it must

study the results and make necessary

the issues management process is a

systematic process companies use when responding to public issues that are of greats importance to the business

which of the following statement is not true about the interactive social system

the boundary between business and society is clear and distinct

True or False: A commons is a shared resource, such as land, air or water that a group of people uses collectively.

true

True or False: According to the textbook, the heads of most public affairs departments are senior vice president or vice president positions

true

True or False: Black carbon is the second largest contributor to climate change, responsible for as much as 18 percent of global warming.

true

True or False: Deforestation—cutting down and not replacing trees—contributes to global warming.

true

True or False: Economic regulations aim at modifying the normal operations of the free market and the forces of supply and demand.

true

True or False: Expert witnesses provide information to legislators for businesses or business groups.

true

True or False: Sustainable development will require technology cooperation through long-term partnerships between companies in developed and developing countries to transfer environmental technologies.

true

True or False: The emergence of public issues often encourages companies to monitor public concerns, respond to government proposals, and participate in the political process.

true

True or False: The leading contributor to global warming is the burning of fossil fuels, which releases carbon dioxide into the atmosphere

true

True or False: The world's natural resource base—the air, water, soil, minerals, and so forth—is essentially finite, or bounded.

true

True or False: Under U.S. law, lobbying activities must be disclosed publicly

true

emerging public issues are both a risk and an opportunity

true

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

true

in the issue management process, identify the issue involves anticipation emerging issues

true

stakeholder materially is a method companies use to prioritize the relevance of the stakeholders and their issues

true

stakeholders involved with one part of the company often may have little or no involvement with another part if the company

true

the interests of different stakeholders often coincide

true

understanding and responding to changing societal expectations is business necessity

true

the five types of stakeholders power recognize by most experts are

voting. economic. political. legal. and informational power

interactions between business and society

within a finite natural ecosystem

Which country recently enacted new laws to counter bribery and corruption? A. Russia. B. Somalia. C. Brazil. D. Argentina.

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