BUS 378 - Bus Gov & Society - Chap 1 Quiz

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

A social group protests a government's decision to raise taxes

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

Actions by governments rarely affect business

Customers can exercise economic stakeholder power by: Voting on a proposed merger for the company and a competitor. Applying for a job with the company. Boycotting products if they believe the goods are too expensive Attending the company's annual meeting.

Boycotting products if they believe the goods are too expensive

Which of the following statements is not true about the interactive social system? Business and society need, as well as influence, each other. The boundary between business and society is clear and distinct Business is a part of society, and society penetrates far and often into the business. Business and society are both separate and connected.

The boundary between business and society is clear and distinct

Government can be considered both a market and nonmarket stakeholder. True False

True

The interests of different stakeholders often coincide. True or False

True

Walmart has been called a "template for 21st century capitalism." True False

True

Businesses and society are independent of one another. True or False

false

Which one of the following is considered to be a nonmarket stakeholder of business? Creditors Nongovernmental organizations Customers. Stockholders.

Nongovernmental organizations

Corporations that run their operations according to the stakeholder theory of the firm create value by: Innovating new products. Increasing their stock price. Developing their employees' professional skills. All of the above.

All of the above.

Departments, or offices, within an organization that reach across the dividing line that separates the company from groups and people in society are: Geographical location areas. Organizational maps. Boundary-spanning departments.Correct Inter-departmental divisions.

Boundary-spanning departments

The external environment of business is static. True False

False

The stakeholder theory of the firm argues that a firm's sole purpose is to create value for its shareholders. True False

False

Which argument says that stakeholder management realistically depicts how companies really work? Instrumental argument. Normative argument. Fiduciary argument. Descriptive argument.

descriptive arguement

Market stakeholders include nongovernmental organizations and the business support groups. True or False

false

The normative argument for the stakeholder theory of the firm says that the stakeholder view is simply a more realistic description of how companies really work. True or False

false

nonmarket 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 true or false

false

some scholars have suggested that managers pay the most attention to stakeholders possessing the least silence true or false

false

With the explosive growth of technologies that facilitate the sharing of information, this kind of stakeholder power has become increasingly important: Political power. Informational power.Correct Legal power. Economic power.

informational power

a stakeholder analysis: creates equality among all stakeholder interests allows managers to examine two primary questions involves understanding the nature of stakeholder interests all of the above

involves understanding the nature of stakeholder interests

When a community group sues a company for health effects caused by the unsafe disposal of toxic chemicals, this is an exercise of a stakeholder's: Political power. Voting power. Legal power.Correct Economic power.

legal power

All of the following are external stakeholders of the firm except: Suppliers. Shareholders. Customers. Managers.

managers

Stakeholders stand out to managers when they exhibit: Integrity, power, and legitimacy. Integrity, loyalty, and power. Power, legitimacy, and urgency.Correct Legitimacy, loyalty, and urgency.

power, legitimacy, and urgency

Interactions between business and society occur: When business employees and the community are of similar cultural backgrounds. Within a finite natural ecosystem.Correct When legislation is passed requiring interaction. Only during an environmental crisis.

within a finite natural ecosystem

A stakeholder map is a useful tool because: rev: 2016_08-17_CS57564 A. It enables managers to see quickly how stakeholders feel about an issue. B. It allows managers to evaluate what outcomes are likely regarding an issue. C. It helps managers discourage or dissolve stakeholder coalitions. D. Both A and B, but not C

Both A and B, but not C

Stakeholder groups can include: Shareholders. Business support groups. Environmental activists. All of the above.

all of the above

The fiduciary duty of managers benefits a firm's: Shareholders. Customers. Employees. All of the above.

all of the above

A stakeholder map is a useful tool, because it enables managers to see quickly how stakeholders feel about an issue and whether salient stakeholders tend to be in favor or opposed. true or false

true

Stakeholders involved with one part of a company often may have little or no involvement with another part of the company. True or False

true

Which of the following examples best illustrates the boundary exchanges a company would encounter according to the general systems theory? 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 from a supplier. All of the above.

all of the above

which of the following is the result of the inseparable relationship between business and society all business decisions have a social impact the vitality of business depends on society's actions and attitudes the survival of business is independent of society both A and B but NOT C

both A and B but NOT C

What stakeholder group(s) can exercise legal power? a. Employees. b. Customers. c. Shareholders. d. All of the above

d. All of the above

A business is any organization that is engaged in making a product or providing a service for a profit. True False

True

The main reason a number of European countries require public companies to include employee members on their boards of directors is so that: Employees interests will be explicitly represented.Correct The employees will be available to answer other board members' questions. Management will not have to attend the meetings. Employees will have more power than any other stakeholder.

employees interests will be explicitly represented

Urgency refers to the extent to which a stakeholder's actions are seen as proper or appropriate by the broader society. True or False

false

The instrumental 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 or False

true

What kind of power might a local community use to influence a company's decisions? Publicizing an issue. Lobbying government policy makers for regulations. Challenging whether a business activity should continue to operate. All of the above

all of the above

Which of the following is not considered to be a nonmarket stakeholder? Activist groups. Non-governmental organizations. Government agencies. Creditors.

creditors

The instrumental argument says stakeholder management is: a. More effective as a corporate strategy.Correct b. Determined by the amount of stock owned in the firm. c. Simply the right thing to do. d. A more realistic description of how companies really work.

a. more effective as a corporate strategy

Which of the following statements is (are) correct about stakeholders' power? Different stakeholders have different types and degrees of power. Shareholders' voting power is limited to the percentage of share owned by the shareholder. It uses resources to achieve a desired decision or outcome. All of the above.

all of the above

Stakeholders have been able to form international coalitions more successfully through use of: a. Unions b. Community involvement c. Communications technology d. Government regulation

c. Communications technology

The phenomenon of a person or group holding multiple stakeholder duties is referred to as: a. Role sets b. Primary stakeholder(s) c. Ownership Theory d. none of the above

role sets

When something stands out from a background, is seen as important, or draws attention it is: Powerful. Salient.Correct Legitimate. Urgent.

salient

A firm subscribing to the ownership theory of the firm would mainly be concerned with providing value for its: Community. Shareholders.Correct Board of Directors. Customers.

share holders

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

voting, economic, political, legal and informational power