OBHR 4310 - Exam 1
What was the effect of the Citizens United decision to allow direct unlimited contributions from businesses to politicians ?
Political spending by corporations increased dramatically .
Economic regulations aim to modify the normal operations of the free market and the forces of supply and demand .
True
Ethical ideas are present in all societies , all organizations , and all individual persons .
True
How a business reacts to specific government policy often depends on if they would be helped or hurt by the rules .
True
If all people relied on ethical relativism , there would be no universal ethical standards on which people around the globe could agree .
True
Understanding and responding to changing societal expectations is a business necessity .
True
When managers become personally involved in developing public policy , the firm is at what level of business political involvement ?
aggressive
A company that builds stakeholder coalitions to influence government is using which strategy?
constituency building
A market stakeholder of business is exemplified by which of the following ?
creditors
5) The fiduciary duty of managers benefits a firm's shareholders.
customers. employees. D) All of these choices are correct.
36) Patterns of government collecting and spending funds to stimulate or support the economy fall under which type of policy?
fiscal
43) The reason(s) behind a corporate political strategy might be to
focus on limiting a competitor's progress. further a firm's economic survival or growth. exercise their voice in government affairs. D) All of these choices are correct.
A firm subscribing to the shareholder theory of the firm would mainly be concerned with providing long - term value for its
investors
All of the following are external stakeholders of the firm except
managers
27) The reason(s) behind the uncertainty of an ethical decision is(are) that different people and groups
may use different sources of information. may rank various rights in different ways. may not share the same meaning of justice. D) All of these choices are correct.
6) A nonmarket stakeholder of business is exemplified by which of the following?
nongovernmental organizations
20) What role does social media play in stakeholder engagement?
provides a forum for the firm to share information with the public via blogs and press releases offers a mechanism for the public to voice their opinions of the firm and its products
7) Stakeholder groups can include
shareholders. business support groups. Environmental activists. D) All of these choices are correct.
34) By raising and lowering the interest rates at which private banks borrow money from the government, the Federal Reserve Bank influences
the size of the nation's money supply. he value of the dollar. investor confidence. D) All of these choices are correct.
What contribution limits are in place for a Super PAC ?
unlimited amounts from groups or individuals
The five types of stakeholders ' power recognized by most experts are
voting economic political legal and informational power
Five Key Reasons Business Should Be Ethical
1. To meet demands of business stakeholders 2. To enhance business performance 3. To comply with legal requirements(Sarbanes-Oxley Act 2002: Accuracy of fin. reports, fraudulent pay back bonuses) 4. To prevent or minimize harm 5. To promote personal morality
47) What was the effect of the Citizens United decision to allow direct unlimited contributions from businesses to politicians?
A) Political spending by corporations increased dramatically.
12) The emergence of a public issue indicates that
A) a gap may be forming between what stakeholders expect and what a firm is doing.
29) Businesses' understanding of government regulations is
A) both a domestic and an international issue.
17) An interactive business-stakeholder relationship is one where
A) companies actively engage with stakeholders through mutual respect and trust.
23) A purchasing agent giving an exclusive contract to a supplier, from which she received a valuable gift, is an example of
A) conflict of interest.
40) A test to determine if the benefits of regulation are worth its costs is called a
A) cost-benefit analysis.
4) Which argument says that stakeholder management realistically depicts how companies really work?
A) descriptive argument
28) Which entity enforces rules to balance the relationship between business and society?
A) government
32) A government is being asked to regulate driving distractions is an example of a public policy
A) input.
3) A firm subscribing to the shareholder theory of the firm would mainly be concerned with providing long-term value for its
A) investors.
18) Proactive companies are
A) much less likely to be blindsided by crises and negative surprises.
Information should be
Accurate Relevant Timely
economic regulation
Aim to modify the normal operation of the free market and the forces of s and demand ; the oldest form of regulation . Example Dodd - Frank Act of 2010 regulated oversight and supervision of financial institutions .
2) According to general systems theory, boundary exchanges are exemplified by which of the following?
An industrial company installs new equipment in its plant to comply with environmental regulations. A software company develops an application for a client. A purchasing department employee negotiates a price on parts with a supplier. D) All of these choices are correct.
44) Which political action strategy seeks to gain support from other affected organizations to better influence policymakers?
B) Constituency-building strategy
45) What is the risk of a revolving-door hiring policy?
B) There may be favoritism in decision making.
22) Ethical relativism is most accurately defined by which statement?
B) What's ethical in one society may be forbidden in another.
41) A structural remedy for an antitrust violation includes
B) breaking up a monopolistic organization.
8) Particular stakeholders stand out to managers when they exhibit
B) power, legitimacy, and urgency.
9) When something stands out from a background, is seen as important, or draws attention it is
B) salient.
39) One concern of critics of regulation is
B) the high cost to small and manufacturing businesses.
37) Regulation can be argued as justified based on
B) utilitarian and justice grounds.
Supporters of advocacy advertisements believe that they
Both the answers " identify a company as an interested and active stakeholder " and help mold public opinion on a particular policy issue " are correct .
The relationship between business and society is most accurately described by which statement ?
Business is a distinct bounded entity within the larger bounded entity of society .
1) The relationship between business and society is most accurately described by which statement?
Business is a distinct bounded entity within the larger bounded entity of society.
26) As a factor of moral intensity, how does the proximity of an issue affect the decision maker?
C) The greater the empathy, the higher the intensity.
10) What is the primary reason that stakeholder coalitions form?
C) The stakeholder interest(s) of different groups coincides.
30) Why should companies be concerned when doing business with questionable governments?
C) They might indirectly support the illegitimate controlling power.
50) When managers become personally involved in developing public policy, the firm is at what level of business political involvement?
C) aggressive
11) Failure to understand the beliefs and expectations of stakeholders may
C) cause the performance-expectations gap to grow larger.
14) Legal environmental intelligence includes
C) considerations of patents, copyrights, or trademarks.
48) A company that builds stakeholder coalitions to influence government is using which strategy?
C) constituency building
31) When a government orders companies not to conduct business in another country because of a war, human rights violations, or the lack of a legitimate government; these orders are called
C) economic sanctions.
16) The drivers of stakeholder engagement are
C) goals, motivation, and operational capacity.
24) Business managers need a set of ethical guidelines to help them
C) identify and analyze the nature of an ethical problem.
33) Public policy tools involve a combination of
C) incentives and penalties.
25) The main drawback to utilitarian reasoning is that
C) it is difficult to accurately measure both costs and benefits.
38) Since 1960, what was the growth trend in the U.S. regulatory apparatus?
C) significantly increased.
21) People's ethical principles come from
C) their religious background, family, and education.
46) What contribution limits are in place for a Super PAC?
C) unlimited amounts from groups or individuals
42) Proponents of business as a political participant argue that
D) Both "a pluralistic system invites many participants" and "business is a vital
49) Supporters of advocacy advertisements believe that they
D) Both the answers "identify a company as an interested and active stakeholder" and "can help mold public opinion on a particular policy issue" are correct.
19) Companies that believe they can make decisions unilaterally, without taking into consideration their impact on others, are
D) inactive.
35) Rules that affect the supply, demand, and value of a nation's currency refer to which type of public policy?
D) monetary
13) An analysis of the stability or instability of a government is an example of scanning which type of environmental intelligence?
D) political
15) The role of special interest groups is an important element in acquiring intelligence from which environment?
D) social
A national health care policy is an example of an economic policy .
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 firm .
False
Business cannot expect to be profitable while adhering to ethical principles of conduct .
False
In all cases , businesses are unable to exert enough influence over government leaders to keep them in power .
False
