MGNT 430: Midterm Review

Market stakeholders include nongovernmental organizations and business support groups.

False

The external environment of business is static.

False

True or False: A public issue exists when there is agreement between the stakeholders' expectations of what a business firm should do and the actual performance of that business firm.

False

True or False: Globalization is accepted worldwide and creates little controversy.

False

True or False: Google.org is a NOT for profit organization.

False

True or False: Only manufacturing jobs are being lost through globalization.

False

True or False: Although many firms conduct business across national boundaries, most global commerce is carried out by a small number of powerful firms.

True

True or False: Environmental intelligence is the acquisition of information gained from analyzing the multiple environments affecting organizations.

True

Firms have the same legal rights as: a. A Person b. The Enviroment c. The have their own status d. All of the above

a. A Person

The emergence of a public issue indicates that: a. A gap may be developing between what stakeholders expect and what an organization is actually doing. b. Technology is forcing ethics and business strategy closer together. c. Consumers are unaware of how an organization's actions affect them. d. All of these answers are correct.

a. A gap may be developing between what stakeholders expect and what an organization is actually doing.

Positive reputation can be valued as an intangible corporate: a. Asset. b. Liability. c. Charity. d. Expense.

a. Asset.

A free enterprise system refers to: a. Economic assets that are privately owned and exchanged in an open market. b. Property ownership by a centralized government. c. A mix of privately owned and government controlled economic assets. d. An index of economic freedom.

a. Economic assets that are privately owned and exchanged in an open market.

A firm subscribing to the shareholder theory of the firm would mainly be concerned with providing value for its: a. Investors. b. Customers. c. Board of Directors. d. Community.

a. Investors.

Concerns about corporate social responsibility are exemplified by which of these statements? a. Requires skills businesses may lack. b. Creates an imbalance between corporate power and its economic responsibility. c. Improves business value and reputation. d. A majority of stockholders are against it.

a. Requires skills businesses may lack.

The costs of corporate social responsibility may ultimately be passed on to the: a. Supplier through discounts. b. Consumer through high prices. c. Investor through stock splits. d. Taxpayers by the government.

b. Consumer through high prices.

Those in support of corporate social responsibility believe the practice: a. Lowers economic efficiency and profit. b. Discourages government regulation. c. Places responsibility on business rather than individuals. d. Imposes unequal costs among competitors.

b. Discourages government regulation.

Microfinance refers to banks: a. Lending money to a very small number of businesses. b. Lending money to low-income businesses. c. Lending very small amounts of money to wealthy businesses. d. Charging low fees for all business loans.

b. Lending money to low-income businesses.

The term "race to the bottom" refers to: a. Seeking to mine valuable minerals from the bottom of the ocean. b. Moving production jobs to the country with the lowest labor cost. c. Efforts to deconstruct the assembly process in manufacturing industries. d. An old concept of globalization that is no longer relevant.

b. Moving production jobs to the country with the lowest labor cost.

Which one of the following is considered to be a nonmarket stakeholder of business? a. Customers. b. Nongovernmental organizations. c. Creditors. d. Shareholders.

b. Nongovernmental organizations.

Stakeholders stand out to managers when they exhibit: a. Integrity, power, and legitimacy. b. Power, legitimacy, and urgency. c. Integrity, loyalty, and power. d. Legitimacy, loyalty, and urgency.

b. Power, legitimacy, and urgency.

Stakeholder engagement is, at its core, a: a. Program. b. Relationship. c. Process. d. Systems model.

b. Relationship.

What is the public issue in the case Businesses Respond to the Movement for School Safety? a. First amendment rights and on-the-job worker safety. b. Second amendment rights and the safety of students in schools. c. First amendment rights and the safety of teachers in schools. d. Second amendment rights and safety for law enforcement.

b. Second amendment rights and the safety of students in schools.

Proponents against corporate social responsibility feel that public officials, not business people, should solve societal problems because: a. Business people do not have the skill set to solve societal problems. b. The private sector is not mandated to solve these issues. c. Both of these answers are correct. d. Neither of these answers is correct.

c. Both of these answers are correct.

Failure to understand the beliefs and expectations of stakeholders: a. Causes a company's profits to increase in the short run. b. Causes a company's profits to decrease in the short run. c. Causes the performance-expectations gap to grow larger. d. Decreases the chance of a corporate buy-out.

c. Causes the performance-expectations gap to grow larger.

Legal environmental intelligence includes: a. Patterns of aggressive growth versus static maintenance. b. Analysis of local, state, national, and international politics. c. Considerations of patents, copyrights, or trademarks. d. Information regarding costs, prices, and international trade.

c. Considerations of patents, copyrights, or trademarks.

Firms that generally act only when forced to do so, and then in a defensive manner, are: a. Interactive. b. Proactive. c. Reactive. d. Inactive.

c. Reactive.

Stakeholder engagement is: a. Any issue that is of mutual concern to an organization and one or more of its stakeholders. b. Competitive intelligence being collected ethically and systematically. c. The process of ongoing relationship building between a business and its stakeholders. d. The acquisition of information gained from analyzing the multiple environments.

c. The process of ongoing relationship building between a business and its stakeholders.

A critic of globalization might argue that companies decide to manufacture in China mainly because of China's: a. Strict law enforcement. b. High environmental standards. c. Weak health and safety regulations. d. Strong worker unions.

c. Weak health and safety regulations.

The percentage of global wealth concentrated at the base of the Pyramid is: a. 8 percent. b. 22 percent. c. 60 percent. d. 70 percent.

d. 70 percent.

Which statement is not correct about the business-society interdependence? a. Business is a part of society. b. Business is separated from the rest of society by clear boundaries. c. Business activities impact other activities in society. d. Actions by governments rarely affect business.

d. Actions by governments rarely affect business.

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

d. All of these answers are correct

An example of an international financial and trade institution is: a. World Bank. b. International Monetary Fund. c. World Trade Organization. d. All of these answers are correct.

d. All of these answers are correct.

Stakeholder groups can include: a. Shareholders. b. Business support groups. c. Environmental activists. d. All of these answers are correct.

d. All of these answers are correct.

Companies demonstrate global corporate citizenship by: a. Building reactive stakeholder partnerships. b. Finding business opportunities that serve society. c. Integrating concern for both financial and social performance. d. Both of these answers are correct: Finding business opportunities that serve society and integrating concern for both financial and social performance.

d. Both of these answers are correct: Finding business opportunities that serve society and integrating concern for both financial and social performance.

A business and its stakeholders coming together for face-to-face conversations about issues of common concern is called stakeholder: a. Networks. b. Motivation. c. Systems. d. Dialogue.

d. Dialogue.

An analysis of the stability or instability of a government is an example of scanning which environment? a. Social. b. Legal. c. Geophysical. d. Political.

d. Political.

According to the film, The Corporation, in the US, firms have: a. The legal status is dependent on the issue b. All of the above c. No legal status d. The same legal status as a person

d. The same legal status as a person

In the case Insuring Uber's App-On Gap, which stakeholders supported ending the App-On Gap? a. Competitors, taxi companies, Internet-based firms. b. Taxi companies, high-tech trade associations, government. c. Uber customers, competitors, government. d. Uber customers, Uber drivers, consumer lawyers.

d. Uber customers, Uber drivers, consumer lawyers.