Practice Exam

7. Which of these SDG's is NOT a top 4 priority for US Business? A. Industry, Innovation and Infrastructure B. Gender Equality C. Climate Action D. Decent Work and Economic Growth E. They are all equally important SDG's to US Businesses

A. Industry, Innovation and Infrastructure

11. In 2019, H&M launched a line of clothing titled "Conscious". The company claims to use 'organic' cotton and recycled polyester. However, at quick glance, the line is nothing but a shelled marketing tactic used to make themselves appear more environmentally friendly. What is this called? A. Sustainable Production B. CSR Greenwashing C. SRI Investment in products D. Corporate Citizenship E. CSV: New Markets and Products

B. CSR Greenwashing

14. In August 2019, the Business Roundtable issued a new Statement on the Purpose of a Corporation. The signatories to the Statement bound themselves to "a fundamental commitment to all of our stakeholders." Prior to this Statement, the idea about stakeholder importance and management was extensively studied and written about by which of the following individuals? A. Milton Friedman B. Edward Freeman C. Peter Drucker D. Michael Porter E. Adam Smith

B. Edward Freeman

10. One of the former arguments in support of CSR is that it is the Fiduciary Duty of managers to make a profit for the firm. A. True B. False

B. False

15. The weights for each of the categories: Environmental, Social and Governance remain consistent across all industries. A. True B. False

B. False

9. In CSR, social programs and business activities are integrated and embedded within each other. A. True B. False

B. False

12. The people for the Ethical Treat of Animals (PETA) is an activist group that targeted McDonald's for not doing enough for animal welfare issues. It started a campaign that said "McCruelty - I'm Hating It". What strategy would you adopt with PETA as a stakeholder? A. Increase your advertising B. Observe their actions C. Consult on their areas of concern and interests D. Monitor their campaigns and tactics E. Attempt to turn them into supporters

C. Consult on their areas of concern and interests

8. During the first 3 months of COVID-19, Chipotle decided to close all of its stores. However, as time passed and a partnership formed with UberEats, Chipotle was able to open. UberEats would deliver Chipotle orders with no delivery charge to customers within a 15 mile radius of the store. Both companies did very well as a result of this partnership. What is the Threat and Cooperation level of UberEats to Chipotle? A. Low for Threat and High for Cooperation B. Low for Threat and Low for Cooperation C. High for Threat and High for Cooperation D. High for Threat and Low for Cooperation E. None of the above, they are in 2 different industries

C. High for Threat and High for Cooperation

4. Which of the following is NOT a characteristic of Business Objective? A. They determine the structure of a business B. They determine the key activities that must occur C. They determine the future of business D. They determine who you compete against

C. They determine the future of business

6. According to Drucker, the one valid definition of business purpose is to create a customer. According to Drucker, which of the following is best described by what customers value? A. Getting low priced goods and/or services for their money B. Getting the highest quality product C. Getting what they want before they know they want it D. Maximizing the utility that the product provides them with E. Providing them with something that gives them social status

D. Maximizing the utility that the product provides them with

1. The Walmart Foundation committed over $100m to increase the economic mobility of workers. Walmart gave away over 800 scholarships to their associates and dependents for higher education. Walmart also committed $25m to improve community disaster response. All of these actions show that Walmart is fulfilling which responsibility under the Carroll test? A. Economic B. Legal C. Ethical D. Philanthropic E. Benevolent

D. Philanthropic

2. Starbucks decided to stop using plastic straws after media reports showed that many sea turtles had plastic straws wedged in their noses. The Sea Turtle Conservatory, a non-profit organization that works to help sea turtles all over the world, exerted a lot of pressure on beverage companies to forgo plastic straws and replace them with paper straws. The Sea Turtle Conservancy is an example of what type of stakeholder? A. Primary Social B. Primary Non Social C. Secondary Social D. Secondary Non Social E. Social Non Primary

D. Secondary Non Social

3. According to Drucker, which of the following allowed low-wage countries to become efficient enough to compete with higher-wage countries? A. Automation B. Information Technology C. Research and Development D. Training E. Innovation

D. Training

5. When reviewing a company's MSCI ESG report one may find all of the following except A. ESG Rating Distribution for the industry B. ESG Ratings Scorecard C. Litigation fines and Settlement expenses D. Board member profiles E. Number of employees by location

E. Number of employees by location

13. Which of the following is not a commitment of the BRT? A. Investing in our employees B. Dealing fairly and equally with our suppliers C. Supporting the communities in which we work D. Delivering Value to our customers E. They are all commitments of the BRT

E. They are all commitments of the BRT