MGMT 201 Exam #2
To influence government policymakers' actions, an information strategy involves: A. Business leaders speaking before government policymakers. B. Government policymakers hiring special interest groups for fact-finding projects. C. Businesses listening to government policymakers in order to develop a corporate strategy. D. Gaining support from other affected organizations.
Business leaders speaking before government policymakers
Social capital is a phrase that refers to all of the following, except: A. The goodwill that is engendered by the fabric of social relations. B. A close relationship between companies and groups in the community. C. The norms and networks that enable collective action. D. Funds set aside for company events.
Funds set aside for company events
This law tightened regulation on issuers of complex securities, especially those related to subprime mortgages: A. Sarbanes-Oxley Act. B. Dodd-Frank Act. C. Affordable Care Act. D. Securities and Exchange Act.
Securities and Exchange Act
Which of the following is a key feature of effective boards of directors? A. Hold regular meetings without the CEO present. B. Fill all important positions on the board with managers with insider knowledge of the firm. C. Combine the duties of the board chairman and the chief executive. D. Ensure that no outside members are included on the board.
Hold regular meetings without the CEO present.
Which of these factors has accelerated the current ecological crisis? A. Population reduction. B. World income equality. C. Rapid industrialization. D. All of the above.
World income equality
Organizations with strong positive reputations are generally more successful because they: A. Receive fewer opportunities. B. Are generally less immune to long-term criticism. C. Often get the benefit of the doubt in uncertain circumstances. D. Both A and C, but not B.
Often get the benefit of the doubt in uncertain circumstances
Another term for corporate giving is corporate: A. Welfare. B. Goodwill. C. Philanthropy. D. Citizenship.
Philanthropy
The mission of the Securities and Exchange Commission (SEC) is to: A. Protect shareholders' rights by making sure that stock markets are run fairly. B. Protect companies from hostile takeovers. C. Ensure that institutional investors do not take control of company management. D. Ensure that the federal treasury receives its share of the revenues from stock trading.
Protect shareholders' rights by making sure that stock markets are run fairly.
Rapid economic development is often accompanied by: A. Increasing population growth. B. Greatly decreased crop yields. C. Rising incomes, bringing higher rates of both consumption and waste. D. Decreasing incomes, bringing rates of both consumption and waste.
Rising incomes, brining higher rates of both consumption and waste
Which of the following statements is not true about environmental standards? A. Regulatory agencies can establish standard allowable levels of pollutants. B. The government has the power to command business firms to comply with certain standards. C. The government rarely interferes in a business's choice of pollution technology. D. They are the most widely used methods of regulation.
The government rarely interferes in a business choice of pollution technology
Both large and small businesses have adopted sustainable practices to what advantage: A. Cost savings from operational efficiency. B. Opportunity to serve emerging economies. C. Reduction of regulatory risk. D. All of the above.
All of the above
Business depends on the community for: A. Education. B. Public services. C. Transportation systems. D. All of the above.
All of the above
Environmental regulations stimulate some sectors of the economy by: A. Creating jobs in industries like environmental consulting, asbestos abatement, and instrument manufacturing. B. Saving jobs in industries like fishing and tourism when natural areas are protected or restored. C. Compelling businesses to become more efficient by conserving energy. D. All of the above.
All of the above
In the United States, the federal government regulates which of the following major areas of environmental protection? A. Air pollution. B. Water pollution. C. Land pollution. D. All of the above.
All of the above
Intellectual property refers to: A. Protecting one's ideas, concepts, and symbolic creations. B. Special laws protecting copyrights, patents, and trademarks. C. Prohibiting the downloading of commercial software or videogames. D. All of the above.
All of the above
Public policies and government regulations are shaped by: A. Business. B. Special interest groups. C. Government. D. All of the above.
All of the above
In 2008 and early 2009, share values declined sharply as the global economy fell into a severe recession. This type of stock market is referred to as a: A. Bull market. B. Volatile market. C. Bear market. D. None of the above.
Bear market.
Proponents of business as a political participant argue: A. A pluralistic system invites many participants. B. It is business's constitutional right to be involved. C. Business is a vital stakeholder of government. D. Both A and C, but not B
Both A and C, but not B
What is the primary goal of a community relations department? A. To improve the financial bottom line. B. To build relationships with important community groups. C. To collaborate with other company teams to create policy. D. Both B and C, but not A.
Both B and C, but not A
Which of the following is not true about institutional investors? A. Institutions invest their funds by purchasing shares of stock in corporations. B. The proportion of institutional ownership of stock in the U.S. has declined slowly since the 1960s. C. Pension funds and university endowments are examples of institutional investors. D. Institutions accounted for 63 percent of the value of all equities owned in the U.S. in 2010.
The proportion of institutional ownership of stock in the U.S. has declined slowly since the 1960s.
Which of the following is not a legal right of shareholders? A. To vote on members for the board of directors. B. To vote on major mergers and acquisitions. C. To vote on changes in the corporate charter and proposals. D. To vote on who will become chief executive officer (CEO).
To vote on who will become chief executive officer (CEO).
In some economically developed countries and most developing countries around the world genetically modified food was: A. Looked upon with caution but generally accepted. B. Welcomed as a way to increase crop yields. C. Rejected by most governments. D. Viewed with extreme caution.
Welcomed as a way to increase crop yields.
General Electric's "Ecomagination" effort to invest in clean technology is an example of: A. Pollution prevention. B. Product stewardship. C. Clean technology. D. None of the above.
Clean technology
Life-cycle analysis involves: A. Accurately recording the production costs at each stage of a product's life cycle. B. Collecting information regarding the lifelong environmental impact of a product, from extraction to disposal. C. Reducing recycling costs for disposable products. D. Increasing productivity while improving the environment.
Collecting information regarding the lifelong environmental impact of a product, from extraction to disposal
Some researchers believe that business firms moving towards ecological sustainability results in: A. Competitive advantages. B. Decreased worker productivity. C. More government regulation. D. Less money for shareholders.
Competitive advantages
Which of these statements accurately describes a Super PAC? A. Allows limited contributions from unions. B. Allows limited contributions from individuals. C. Is also called the dependent expenditure-only committee. D. Does not allow direct contributions to candidates or political parties.
Does not allow direct contributions to candidates or political parties
Lobbyists, under U.S. law, must disclose their: A. Political affiliation and expenses. B. Earnings. C. Expenses. D. Earnings and expenses.
Earnings and expenses
Restrictive governments often reduce or eliminate citizen access to the Internet and social media sites in order to? A. Suppress political dissent. B. Impose religious or ideological views. C. Increase bandwidth for government usage. D. A and B, but not C.
A and B, but not C
Hiring former government officials for positions in the corporate world is: A. Normally legal. B. Always unethical. C. Considered unethical by over 50% of Americans. D. A and C, but not B.
A and C, but not B
The use of robotics in the workplace has increased recently because: A. The cost of robots has decreased. B. Robots are more reliable than people. C. New collaborative machines have been invented. D. All of the above.
All of the above
Which of the following is (are) true regarding a recognizable brand? A. Identifies how a company is distinctive from their rivals. B. Instills an emotional attachment that creates brand loyalty. C. Customers trust its exceptional value. D. All of the above.
All of the above
A technological application that uses biological systems or living organisms to make or modify products or processes for specific use is called: A. Biosphere outcome. B. Metatechnology. C. Biology. D. Biotechnology.
Biotechnology
During crisis management, doing the right thing should include: A. Accepting responsibility. B. Expressing regret. C. Minimizing the seriousness of the problem. D. Both A and B, but not C.
Both A and B, but not C
Which of these steps has the U.S. recently taken to counter cybercrime? A. Setup a system of voluntary cybersecurity standards. B. Opened a new center dedicated to managing cyber activities. C. Passed sweeping new legislation that required Internet providers to guarantee security. D. Both A and B, but not C.
Both A and B, but not C
An organization that produces net zero emissions of greenhouse gases is achieving: A. Carbon offsets. B. Carbon credits. C. Carbon neutrality. D. Black carbon.
Carbon neutrality
Which of the following is not a possible cost of environmental regulation? A. Unemployment. B. Reduced capital investment. C. Corporate restructuring. D. Lowered productivity.
Corporate Restructuring
A significant business disruption that stimulates extensive news media and social networking coverage is called a(n): A. Explosion. B. Crisis management. C. Corporate crisis. D. Human error.
Corporate crisis
Downloading illegal files, spreading computer viruses, and stealing from online bank accounts is collectively referred to as: A. Hacking. B. Software piracy. C. Cybercrime. D. Internet censorship.
Cybercrime
The primary reason that governments try to keep pace with technology is to: A. Control the speed of innovation. B. Manage the cost of technology. C. Ensure that the public is protected. D. Avoid threats to individuals.
Ensure that the public is protected.
Corporate governance involves the exercise of control over a company's: A. Finance and accounting departments. B. Entire corporate direction. C. Manufacturing facilities. D. Marketing and human resources departments.
Entire corporate direction.
Sustainable development: A. Meets the needs of the present while compromising the ability of future generations to meet their own needs. B. Gives precedence to environmental over economic considerations. C. Balances economic and environmental considerations. D. Gives precedence to present needs over future needs.
Givers precedence to environmental over economic considerations
Software piracy is a major problem in which part of the world? A. Globally. B. North America only. C. Asia only. D. North America and Asia.
Globally
Which of these situations is not a reason for a firm to communicate through the media? A. Repairing a damaged image. B. Ignoring or downplaying an organizational crisis. C. Managing its public relations. D. Engaging with multiple stakeholders.
Ignoring or downplaying an organizational crisis
The way organizational members believe others see the organization is called the corporate: A. Identity. B. Reputation. C. Image. D. Perception.
Image
The purpose of the right to be forgotten is to: A. Increase protection of privacy and personal information. B. Protect property rights. C. Protect intellectual property. D. Prevent software privacy.
Increase protection of privacy and personal information
Which of the following statements is not true about arable land? A. It is a nonrenewable resource. B. Over 20 percent of the irrigated lands in developing countries have been salinized. C. Poor farming practices have caused arable lands to turn into deserts. D. Soil erosion has threatened many of the arable lands.
It is a nonrenewable resource
Which of the following statements is true about the relationship between business and the community? A. It is one of mutual interdependence. B. Business has more responsibility towards community than the community does towards business. C. Communities possess more social power than businesses do. D. All of the above statements are true.
It is one of mutual interdependence
As communications improve and people around the world are able to witness the horrors of natural disasters, terrorism, and war, international relief efforts by corporations are becoming: A. Less important. B. More important. C. Obsolete because of social media. D. A liability because of negative media.
More important
How has the increase in information technology affected criminal activities globally? A. Crime has remained about the same. B. Crime has decreased due to better monitoring efforts. C. The need for government cooperation has been reduced. D. New mechanisms for stealing data, trafficking contraband and laundering money have emerged.
New mechanisms for stealing data,
The practice of using fake business emails in order to trick users into divulging personal data, such as usernames and passwords, is called: A. Phishing. B. Pharming. C. Tweeting. D. Censorship.
Phishing
The term civic engagement describes: A. The active involvement of businesses and individuals in improving communities. B. A competitive, free market environment. C. Strong governmental regulation to control businesses at the municipal level. D. A close and collaborative business-government relationship.
The active involvement of businesses and individuals in improving communities
Which of the following statements is not true about shareholders? A. They are the legal owners of business corporations. B. They own equal shares of company assets. C. They are investors in the company. D. Managers pay close attention to their needs and interests.
They own equal shares of company assets.
Economic leverage occurs when a business uses it economic power to: A. Hire lobbyists to gain a desired political action. B. Pay for the costs of regulation to acquire a desired political action. C. Threaten to leave a location unless a desired political action is taken. D. Buyout another firm to acquire a desired political action
Threaten to leave a location unless a desired political action is taken
A customer tweeting about a recent bad shopping experience is using which type of media communication: A. Paid content B. Public service announcemebt C. User-generated content D. Event sponsorship
User-generated content
The digital divide describes the gap between those: A. Individuals who have technology and those who do not. B. Businesses who use e-business and those who do not. C. Hospitals who use online information and those who do not. D. Individuals who have broadband technology and those who do not.
individuals who have technology and those who do not.
Which of the following illustrates the idea of sustainable development through technology cooperation? A. Worldwide conferences to encourage developing countries to invest in technological joint ventures with other developing countries. B. The development of long-term partnerships between companies in developed and developing countries to transfer environmental technologies. C. Advanced countries developing and selling at a profit environment technologies to developing countries. D. All countries developing their own environmental technology in order to solve their own problems.
The development of long-term partnerships between companies
The information strategy tool most used by business is: A. Political contributions. B. Lobbying. C. Legal challenges. D. Direct communication.
Lobbying
The "agency problem" arises when: A. Owners manage the company on their own behalf. B. There is no separation of ownership and control in a company. C. Managers act in their own interest, rather than in the interest of shareholders. D. Shareholders act in their own interest, rather than in the interest of the board.
Managers act in their own interest, rather than in the interest of shareholders.
