BUS 100 Lesson 1 Reading Quiz

A stakeholder analysis: a) Creates equality among all stakeholder interests. b) Allows managers to examine two primary questions. c) Involves understanding the nature of stakeholder interests. d) Actions by governments rarely affect business.

C

A firm subscribing to the shareholder theory of the firm would mainly be concerned with providing value for its: a) Investors. b) Customers. c) Board of Directors. d) Community.

A

All of the following are external stakeholders of the firm except: a) Managers b) Customers. c) Shareholders. d) Suppliers.

A

The five types of stakeholders' power recognized by most experts are: a) "Voting, economic, political, legal, and informational power." b) "Social, legal, environmental, economic, and political power." c) "Social, regulatory, voting, governance, and information power." d) "Economic, informational, legal, shareholder, and political power. "

A

Which of the following is not an example of stakeholders' economic power? a) A supplier halts shipments to a business customer that demanded very low prices. b) A social group protests a government's decision to raise taxes. c) A local community boycotts a grocery store suspected of inaccurate weight scales. d) An equal rights group refuses to do business with a company that has a discriminatory hiring policy.

B

Which one of the following is considered to be a nonmarket stakeholder of business? a) Customers b) Nongovernmental organizations. c) Creditors. d) Shareholders.

B

Corporations that run their operations according to the stakeholder theory of the firm create value by: a) Innovating new products. b) Increasing their stock price. c) Developing their employees' professional skills. d) All of these answers are correct.

D

Stakeholder groups can include: a) Shareholders b) Business support groups. c) Environmental activists d) All of these answers are correct.

D

Which of the following is the result of the inseparable relationship between business and society? a) All business decisions have a social impact. b) The vitality of business depends on society's actions and attitudes. c) The survival of business is independent of society. d) Both of these answers are correct: All business decisions have a social impact and the vitality of business depends on society's actions and attitudes.

D

Which statement is not correct about the business-society interdependence? a) Business is a part of society. b) Business is separated from the rest of society by clear boundaries. c) Business activities impact other activities in society. d) Actions by governments rarely affect business.

D