ETLW302 Exam 1

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

c. Informational power.

1) All of the following are external stakeholders of the firm except: i) Managers. ii) Customers. iii) Shareholders. iv) Suppliers.

i) Managers.

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

i) Voting, economic, political, legal, and informational power.

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

iv) Actions by governments rarely affect business.

When something stands out from a background, is seen as important, or draws attention it is: i) Urgent. ii) Salient. iii) Powerful. iv) Legitimate.

ii) Salient.

Stakeholder groups can include: i) Shareholders. ii) Business support groups. iii) Environmental activists. iv) All of these answers are correct.

iv) All of these answers are correct.

The phenomenon of a person or group holding multiple stakeholder duties is referred to as: i) Role sets. ii) Primary stakeholder(s). iii) Shareholder theory. iv) None of these answers is correct.

i) Role sets.

According to general systems theory, boundary exchanges are exemplified by which of the following? a. An industrial company installs new equipment in its plant to comply with environmental regulations. b. A software company develops an application for a client. c. A purchasing department employee negotiates a price on parts with a supplier. d. All of these answers are correct.

d. All of these answers are correct.

Which argument says that stakeholder management realistically depicts how companies really work? i) Descriptive argument. ii) Instrumental argument. iii) Normative argument. iv) Fiduciary argument.

i) Descriptive argument.

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: i) Legal power. ii) Voting power. iii) Economic power. iv) Political power.

i) Legal power.

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

i) Within a finite natural ecosystem.

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

ii) Boycotting products if they believe the goods are too expensive.

Which one of the following is considered to be a nonmarket stakeholder of business? i) Customers. ii) Nongovernmental organizations. iii) Creditors. iv) Shareholders.

ii) Nongovernmental organizations.

Stakeholders stand out to managers when they exhibit: i) Integrity, power, and legitimacy. ii) Power, legitimacy, and urgency. iii) Integrity, loyalty, and power. iv) Legitimacy, loyalty, and urgency.

ii) Power, legitimacy, and urgency.

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

ii) The boundary between business and society is clear and distinct.

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

iii) Boundary-spanning departments.

Stakeholders have been able to form international coalitions more successfully through use of: i) Government regulation. ii) Community involvement. iii) Communications technology. iv) Unions.

iii) Communications technology.

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

iii) Informational power.

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

iv) All of these answers are correct.

The fiduciary duty of managers benefits a firm's: i) Shareholders. ii) Customers. iii) Employees. iv) All of these answers are correct.

iv) All of these answers are correct.

What kind of power might a local community use to influence a company's decisions? i) Publicizing an issue. ii) Lobbying government policy makers for regulations. iii) Challenging whether a specific business activity should continue. iv) All of these answers are correct.

iv) All of these answers are correct.

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

iv) All of these answers are correct.

A stakeholder map is a useful tool because: i) It enables managers to quickly see how stakeholders feel about an issue. ii) It allows managers to evaluate what outcomes are likely regarding an issue. iii) It helps managers discourage or dissolve stakeholder coalitions. iv) Both a and b are correct

iv) Both a and b are correct