MGMT 425 Ch 3 Quiz

________ is the environmental impact of greenhouse gases (measured in units of carbon dioxide) that results from human activity. A) Carbon footprint B) Greenhouse log C) Carbon cycle D) Greenhouse check

A) Carbon footprint

________ is the forced transfer of assets from a company to the government with compensation. A) Expropriation B) Nationalization C) Confiscation D) Localization

A) Expropriation

Which of the following is an advantage of conducting business in totalitarian nations? A) International companies are less likely to face local political opposition to their activities. B) Government deals are always straightforward and transparent. C) Laws regarding the resolution of contractual disputes are clearly defined. D) International companies run no risk of their public image being tarnished

A) International companies are less likely to face local political opposition to their activities.

Robert believes that social and economic equality can be obtained only by establishing an economic system in which the government owns and controls all types of economic activity. However, he does not think of himself as a communist, but as a socialist. Which of the following statements about Robert is true? A) Robert does not believe that a violent revolution is needed to seize control over resources. B) Robert does not think that political dissidents should go unpunished. C) Robert believes that the pricing of goods should be left to the discretion of laborers. D) Robert believes that the means of production should be owned by the people who use them.

A) Robert does not believe that a violent revolution is needed to seize control over resources.

________ is a political system in which political leaders rely on military and bureaucratic power to support their rule. A) Secular totalitarianism B) Secular anarchism C) Theocratic totalitarianism D) Theocratic pluralism

A) Secular totalitarianism

Laws designed to prevent companies from fixing prices, sharing markets, and gaining unfair monopoly advantages are called ________. A) antitrust laws B) theocratic laws C) anarchist laws D) bilateral laws

A) antitrust laws

Which of the following philosophies asserts that ownership of the means of production belongs in the hands of individuals and private businesses? A) capitalism B) communism C) tribalism D) socialism

A) capitalism

In a ________ government, the strongest political parties share power by dividing government responsibilities among themselves. A) coalition B) bilateral C) totalitarian D) theocratic

A) coalition

The U.S. legal system is largely based on ________. A) common law B) social law C) civil law D) theocratic law

A) common law

A ________ is a political system in which government leaders are elected directly by the wide participation of the people or by their representatives. A) democracy B) theocracy C) plutocracy D) autocracy

A) democracy

A ________ is a right granted to the inventor of a product or process that excludes others from making, using, or selling the invention. A) patent B) trademark C) watertight D) copyright

A) patent

On a recent trip to Hong Kong, a group of tourists found several Prada bags being sold on the pavement. They cost only a few dollars and were clearly fake; though they bore the Prada trademark. This is an example of ________. A) piracy B) monopolization C) ethnocentrism D) nationalization

A) piracy

Which of the following terms refers to an economic system in which the government owns and controls all types of economic activity? A) socialism B) sovereign nationalism C) political bureaucracy D) pluralism

A) socialism

Konesia is a country whose political leaders do not tolerate opposing viewpoints and often suppress or punish dissidents. The lives of Konesians are tightly controlled by its rulers. Which of the following political systems prevails in the country? A) totalitarianism B) democracy C) anarchism D) pluralism

A) totalitarianism

Which of the following political ideologies states that every aspect of people's lives must be controlled for a nation's political system to be effective? A) totalitarianism B) capitalism C) anarchism D) pluralism

A) totalitarianism

________ is the belief that only individuals and private groups should control a nation's political activities. A) Pluralism B) Anarchism C) Theocracy D) Totalitarianism

B) Anarchism

What do communists and socialists have in common? A) Both believe in the elimination of political opponents. B) Both believe that the government should control all types of economic activity. C) Both believe that the pricing of goods should be the responsibility of individuals. D) Both believe that a violent revolution is necessary to seize control over resources.

B) Both believe that the government should control all types of economic activity.

________ is a legal system which is based on a detailed set of written rules and statutes that constitute a legal code. A) International law B) Civil law C) Tribal law D) Common law

B) Civil law

________ is the layer of corporate social responsibility whereby a company develops a code of conduct that it will follow in its global operations and agrees to operate with greater transparency. A) Strategic CSR B) Risk management C) Traditional philanthropy D) Task orientation

B) Risk management

________ measures the indirect carbon dioxide emissions from the whole life cycle of products—from their manufacture to eventual breakdown. A) Primary footprint B) Secondary footprint C) Tertiary footprint D) Internalized footprint

B) Secondary footprint

________ are words or symbols that distinguish a product and its manufacturer from competitors. A) Patents B) Trademarks C) Watermarks D) Copyrights

B) Trademarks

Both Pat and Terry believe that social and economic equality can be obtained only by establishing an economic system in which the government owns and controls all types of economic activity. Which of the following statements proves that Pat is a communist and Terry is a socialist? A) Unlike Terry, Pat believes that the government should decide the prices at which goods are sold. B) Unlike Pat, Terry does not believe in the elimination of political opponents. C) Unlike Terry, Pat believes that the means of production should be owned only by the public. D) Unlike Pat, Terry believes that a violent revolution is necessary to seize control over resources.

B) Unlike Pat, Terry does not believe in the elimination of political opponents.

Which of the following do governments impose upon people to help pay for the consequences of using a particular product? A) income taxes B) consumption taxes C) property taxes D) value-added taxes

B) consumption taxes

The ________ view states that a company should adopt local ethics wherever it operates because all belief systems are determined within a cultural context. A) Friedman B) cultural relativist C) righteous moralist D) utilitarian

B) cultural relativist

Which of the following is an example of a trademark infringement? A) manufacturers who sell different versions of their own products in different countries B) manufacturers who sell counterfeit products under the names and logos of more famous brands C) a company which exports factory rejects to developing countries D) a company which sells products at half the price of their competitors

B) manufacturers who sell counterfeit products under the names and logos of more famous brands

The segment of the economic environment comprising independently owned firms that seek to earn profits is called the ________. A) political sector B) private sector C) democratic sector D) public sector

B) private sector

The ________ view says that a company should maintain its home-country ethics wherever it operates because the home-country's view of ethics and responsibility is superior to others' views. A) Friedman B) righteous moralist C) cultural relativist D) utilitarian

B) righteous moralist

A ________ is a political system in which a country's religious leaders serve as its political leaders. A) democracy B) theocracy C) plutocracy D) septocracy

B) theocracy

Under a(n) ________ political system, the state reigns supreme over institutions such as family, religion, business, and labor. A) pluralistic B) totalitarian C) democratic D) anarchist

B) totalitarian

Shimmer and Sparkle is an American jewellery store which discovers that several shops in developing countries are selling counterfeited necklaces under their name and label. Which of the following problems are they facing? A) patent expiration B) trademark infringement C) copyright expiration D) monopolization

B) trademark infringement

Which of the following is a disadvantage of conducting business in totalitarian nations? A) Laws regarding the resolution of contractual disputes are rigid and inflexible. B) Companies have to contend with the interference of local political opposition. C) A refusal to pay a bribe can result in the forfeiture of investments in the country. D) The government has little power over the economic activities of the nation.

C) A refusal to pay a bribe can result in the forfeiture of investments in the country.

Which of the following statements about representative democracies is true? A) All citizens participate freely and actively in political processes. B) Leaders of representative democracies can stay in power indefinitely. C) Citizens elect individuals from political groups to act on their behalf. D) Representative democracies across the world share identical features

C) Citizens elect individuals from political groups to act on their behalf.

Which of the following philosophies maintains that a company's sole responsibility is to maximize profits for its owners? A) utilitarian view B) righteous moralist view C) Friedman view D) cultural relativist view

C) Friedman view

________ refers to the takeover of an entire industry by the government. A) Decentralization B) Globalization C) Nationalization D) Automatization

C) Nationalization

________ is the layer of corporate social responsibility in which a business builds social responsibility into its core operations to create value and build competitive advantage. A) Risk management B) Traditional philanthropy C) Strategic CSR D) Political polity

C) Strategic CSR

Under ________ law, the justice system decides cases by interpreting the law on the basis of tradition, precedent, and usage. A) civil B) international C) common D) theocratic

C) common

Totalitarian political systems include authoritarian regimes such as ________. A) democracy and theocracy B) anarchism and pluralism C) communism and fascism D) capitalism and secularism

C) communism and fascism

Which of the following does the secondary footprint measure? A) the burning of fossil fuels B) direct energy consumption C) indirect carbon dioxide emissions D) emissions caused by natural forces

C) indirect carbon dioxide emissions

Which of the following terms is also used to refer to communism? A) tribal totalitarianism B) right-wing totalitarianism C) left-wing totalitarianism D) civil totalitarianism

C) left-wing totalitarianism

Product liability laws are those which ________. A) provide consumers with a wide variety of products at fair prices B) add value to a product throughout its production and distribution C) protect people from defective products D) define the taxation on locally manufactured products

C) protect people from defective products

Horizon Ltd. is a software company that, over the last year, incorporated social responsibility into its core operations to create value and build competitive advantage. Which layer of corporate social responsibility does Horizon Ltd. function at? A) risk management B) traditional philanthropy C) strategic CSR D) political CSR

C) strategic CSR

Which of the following is a disadvantage of local requirement laws to foreign companies? A) They do not foster local business activity and increase regional and national unemployment. B) They make it necessary for the government to resort to expropriation and confiscation. C) The companies are forced to bring in raw material and workers from their own countries. D) Companies required to hire local personnel might be forced to take on inadequately trained workers.

D) Companies required to hire local personnel might be forced to take on inadequately trained workers.

Which of the following functions does a copyright perform? A) It protects the trade secrets of an organization, including its business plans. B) It prevents a company from monopolizing an invention. C) It distinguishes the product and manufacturers from competitors through distinct words and symbols. D) It give creators of original work the freedom to publish or dispose of them as they choose.

D) It give creators of original work the freedom to publish or dispose of them as they choose.

Which of the following is a characteristic of totalitarian governments? A) Political dissidents can oppose the government with no repercussions. B) Citizens are guaranteed civil, property, and minority rights. C) The means of production are owned by the people who use them. D) Leaders rule without the explicit approval of the people.

D) Leaders rule without the explicit approval of the people.

________ is the belief that both private and public groups play important roles in a nation's political activities. A) Totalitarianism B) Capitalism C) Anarchism D) Pluralism

D) Pluralism

________ political systems include democracies, constitutional monarchies, and some aristocracies. A) Totalitarian B) Anarchist C) Fascist D) Pluralistic

D) Pluralistic

________ is the layer of corporate social responsibility whereby a corporation donates money and, perhaps, employee time toward a specific social cause. A) Risk management B) Strategic CSR C) Socialist CSR D) Traditional philanthropy

D) Traditional philanthropy

Which of the following terms refers to the forced transfer of assets from a company to the government without compensation? A) expropriation B) nationalism C) nationalization D) confiscation

D) confiscation

Democracies try to preserve peaceful coexistence among groups of people with diverse cultural, ethnic, and racial backgrounds. These rights are known as ________ rights. A) indirect B) central C) subcapital D) minority

D) minority

Under ________ the government endorses private ownership of property and a market-based economy but grants little or no political freedom. A) left-wing totalitarianism B) theocratic totalitarianism C) secular totalitarianism D) right-wing totalitarianism

D) right-wing totalitarianism

A legal tradition based on religious teachings is called ________ law. A) democratic B) common C) civil D) theocratic

D) theocratic

Renzi belongs to a country in which religion governs all aspects of his life, whether personal or public. He has to abide by a strict, rigid, code that dictates everything from the clothes he wears to the food he eats. Breaking away from these traditions is not an option since religion plays an important role in the functioning of the nation. What political system prevails in his country? A) communist totalitarianism B) left-wing totalitarianism C) right-wing totalitarianism D) theocratic totalitarianism

D) theocratic totalitarianism

Which of the following philosophies maintains that a company should maximize "good" outcomes and minimize "bad" outcomes wherever it operates? A) Friedman view B) righteous moralist view C) cultural relativist view D) utilitarian view

D) utilitarian view

Among asset seizure approaches, expropriation is more common than confiscation and nationalization

False

Anarchism is the belief that every aspect of people's lives must be controlled in order for a nation's political system to be effective.

False

Civil law can be more adversarial than common law because civil law relies more on the need to interpret laws according to tradition, precedent, and usage.

False

Developing nations have the toughest product liability laws, while developed countries have more relaxed laws.

False

Economic socialism won the battle over communist totalitarianism and capitalism.

False

Expropriation involves the forced transfer of assets from a company to the government without compensation.

False

Pluralism is a political system in which political leaders rely on military and bureaucratic power.

False

Pluralism is the belief that only individuals and private groups should control a nation's political activities.

False

Pluralistic political systems include authoritarian regimes such as communism and fascism.

False

Product liability laws hold only manufacturers responsible for damage, injury, or death caused by defective products.

False

Secular totalitarianism is a political system in which government leaders are elected directly by the wide participation of the people or their representatives.

False

The most peaceful nations today are those that were once controlled and stabilized by colonial powers.

False

Totalitarian governments tend to favor private ownership of economic resources

False

A solid grasp of local values, customs, and traditions can help reduce a company's exposure to political risk.

True

A value-added tax is a tax levied on each party that adds value to a product throughout its production and distribution.

True

Corporate social responsibility is the practice of going beyond legal obligations to actively balance commitments to investors, customers, other companies, and communities

True

In a coalition government, the strongest political parties share power by dividing government responsibilities among themselves.

True

In a totalitarian system, rulers tightly control people's lives and do not tolerate opposing viewpoints.

True

Islamic law is the most widely practiced theocratic legal system today.

True

Lobbying is the policy of hiring people to represent a company's views on political matters.

True

The Foreign Corrupt Practices Act forbids U.S. companies from bribing government officials or political candidates in other nations.

True

The bureaucracy is the part of government that implements the rules and laws passed by elected representatives

True

The cultural relativist view says that a company's sole responsibility is to maximize profits for its owners while operating within the law.

True

Trademark protection typically lasts indefinitely, provided the word or symbol continues to be distinctive.

True

When a country's religious leaders are also its political leaders, its political system is called a theocracy.

True