Business Ethics midterm 2 ch 7&8

Proponents of business as a political participant argue that

Both "a pluralistic system invites many participants" and "business is a vital stakeholder of government" are correct.

Supporters of advocacy advertisements believe that they

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.

An example of an economic regulatory agency is the

National Labor Relations Board.

What was the effect of the Citizens United decision to allow direct unlimited contributions from businesses to politicians?

Political spending by corporations increased dramatically.

What is one disadvantage to business for making political action committee contributions?

The contribution amount is capped at fairly low levels.

What is the risk of a revolving-door hiring policy?

There may be favoritism in decision making.

Why did vaccine companies collaborate with governments in the United States and the United Kingdom during the global COVID-19 pandemic, as noted in the case "Government's Response to the Coronavirus Pandemic in the United States and the European Union"?

They did this to ensure the rapid development and delivery of their products.

Why should companies be concerned when doing business with questionable governments?

They might indirectly support the illegitimate controlling power.

When managers become personally involved in developing public policy, the firm is at what level of business political involvement?

aggressive

Antitrust laws protect consumers from

anticompetitive practices by business, such as price fixing.

The antitrust enforcement agencies in the United States have the legal authority to

block anticompetitive mergers in the United States.

Public policy tools involve a combination of

incentives and penalties.

Government regulations help balance negative externalities such as

mining regulations to fight black lung disease.

Rules that affect the supply, demand, and value of a nation's currency refer to which type of public policy?

monetary

Economic leverage occurs when a business uses its economic power to

persuade a government body to act in a certain way that favors the business

Economic regulations are illustrated by which action?

preventing anticompetitive business practices

Laws aimed at protecting consumers, the environment, and workers are collectively known as

social regulations.

Public policies and government regulations are shaped by

special interest groups. government. business. Answer: all of these are correct.

An example of a global regulation that mitigates the impact of jet fuel on the environment is

the Aviation Plan.

Reregulation is

the increase or expansion of government regulation

By raising and lowering the interest rates at which private banks borrow money from the government, the Federal Reserve Bank influences

the value of the dollar. the size of the nation's money supply. investor confidence. Answer: all of these are correct.

Why do businesses use direct communications, like plant visits, with political leaders?

to improve the officials' understanding of the business

According to a 2020 survey, the most frequent public affairs activity was related to

trade association oversight.

What contribution limits are in place for a Super PAC?

unlimited amounts from groups or individuals

Regulation can be argued as justified based on

utilitarian and justice grounds.

If a regulation is costly or stifles innovation, how would the impacted business likely respond?

with strong opposition

Businesses' understanding of government regulations is

both a domestic and an international issue

A structural remedy for an antitrust violation includes

breaking up a monopolistic organization.

What is the current trend in the amount of funding for public affairs activities?

budgets are increasing

When a firm solicits its stockholders for political contributions for a particular candidate and then sends those contributions to the candidate on behalf of its stockholders, this is called

bundling.

To influence government policymakers' actions, an information strategy involves

business leaders speaking before government policymakers.

Past decisions of the courts, the original basis for the U.S. legal system, are called

common law.

A company that builds stakeholder coalitions to influence government is using which strategy?

constituency building

A test to determine if the benefits of regulation are worth its costs is called a

cost-benefit analysis.

Which of the following is not a constituency-building strategy tool?

direct communication

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

economic sanctions.

To develop public affairs policies that closely reflect the primary business activities of a firm, a company could involve

employees from various parts of the business.

Patterns of government collecting and spending funds to stimulate or support the economy fall under which type of policy?

fiscal

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 Answer: all of these are correct

Which entity enforces rules to balance the relationship between business and society?

government

A government is being asked to regulate driving distractions is an example of a public policy

input.

When a business seeks to overturn a law or threatens to challenge the legal legitimacy of a new regulation through the courts, this is called a

legal challenge.

When the marketplace does not adjust for the full costs of a firm's behavior, this is called

market failure

To help control political favoritism, there have been global efforts to

promote fairness in the electoral process.

When the U.S. government passed the CARES Act targeting health care during the COVID-19 pandemic, this was an example of which type of public policy, according to the case "Government's Response to the Coronavirus Pandemic in the United States and the European Union"?

social assistance