Chapter 1 Quiz

Which one of the following is considered to be a nonmarket stakeholder of business?

Customers. Nongovernmental organizations. * Creditors. Shareholders.

Businesses and society are independent of one another.

False

Some scholars have suggested that managers pay the most attention to stakeholders possessing the least salience.

False

The external environment of business is static.

False

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:

Legal power.

Stakeholder groups can include:

Shareholders. Business support groups. Environmental activists. All of these answers are correct. *

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

True

Government can be considered both a market and nonmarket stakeholder.

True

The interests of different stakeholders often coincide.

True

Which of the following statements is not true about the interactive social system?

The boundary between business and society is clear and distinct.