Question 1

Businesses and society are independent of one another.

Accepted Answer

A) True 
 B)False

Question 2

What stakeholder group(s)  can exercise legal power?

Accepted Answer

A)   Employees.
B)   Customers.
C)   Shareholders.
D)   All of the above.E) All of the above
F) B) and C)

Question 3

The instrumental argument for the stakeholder theory of the firm says that companies perform better if they consider the rights and concerns of multiple groups in society.

Accepted Answer

A) True 
 B)False

Question 4

Interactions between business and society occur:

Accepted Answer

A)   Within a finite natural ecosystem.
B)   Only during an environmental crisis.
C)   When business employees and the community are of similar cultural backgrounds.
D)   When legislation is passed requiring interaction.E) All of the above
F) A) and D)

Question 5

Describe how the general systems theory can be applied to a business.

Accepted Answer

The general systems theory can be applie...

Question 6

Urgency refers to the extent to which a stakeholder's actions are seen as proper or appropriate by the broader society.

Accepted Answer

A) True 
 B)False

Question 7

The fiduciary duty of managers benefit a firm's:

Accepted Answer

A)   Stockholders.
B)   Customers.
C)   Employees.
D)   All of the above.E) All of the above
F) A) and C)

Question 8

The external environment of business is static.

Accepted Answer

A) True 
 B)False

Question 9

What is a stakeholder map? Why is it a useful tool?

Accepted Answer

A stakeholder map is a visual representa...

Question 10

The normative argument for the stakeholder theory of the firm says that the stakeholder view is simply a more realistic description of how companies really work.

Accepted Answer

A) True 
 B)False

Question 11

General Motors has been called a "template for 21st century capitalism."

Accepted Answer

A) True 
 B)False

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

Harnessing human imagination to create new approaches to the concerns of modern society is an example of:

Accepted Answer

A)   Personal identification.
B)   Networks.
C)   Business profits.
D)   Technology.E) C) and D)
F) A) and B)

Question 14

Which of the following is not an example of stakeholders' economic power?

Accepted Answer

A)   A toy manufacturer halts supplies to a customer that demanded very low prices.
B)   A social group protests a government's decision to raise taxes.
C)   A local community boycotts a grocery store suspected of inaccurate weight scales.
D)   An equal rights group refuses to do business with a business that has a discriminatory hiring policy.E) A) and B)
F) All of the above

Question 15

Compare and contrast the relationships a firm may have with market and non-market stakeholders.

Accepted Answer

A firm may have different types of relat...

Question 16

When something stands out from a background, is seen as important, or draws attention it is:

Accepted Answer

A)   Urgent.
B)   Salient.
C)   Powerful.
D)   Legitimate.E) A) and D)
F) A) and C)

Question 17

A firm subscribing to the ownership theory of the firm would mainly be concerned with providing value for its:

Accepted Answer

A)   Shareholders.
B)   Customers.
C)   Board of Directors.
D)   Community.E) B) and C)
F) A) and B)

Question 18

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

Accepted Answer

A)   Customers.
B)   Media.
C)   Creditors.
D)   Stockholders.E) B) and C)
F) A) and D)

Question 19

Which statement is not correct about the business-society interdependence?

Accepted Answer

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 significantly affect business.E) None of the above
F) A) and D)

Question 20

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

Accepted Answer

A) True 
 B)False

Exam 1: The Corporation and Its Stakeholders

The normative argument for the stakeholder theory of the firm says that the stakeholder view is simply a more realistic description of how companies really work.

Correct AnswerverifiedShow Answer

Interactions between business and society occur:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Businesses and society are independent of one another.

Correct AnswerverifiedShow Answer

The external environment of business is static.

Correct AnswerverifiedShow Answer

When something stands out from a background, is seen as important, or draws attention it is:

Correct AnswerverifiedShow Answer

Harnessing human imagination to create new approaches to the concerns of modern society is an example of:

Correct AnswerverifiedShow Answer

The instrumental argument for the stakeholder theory of the firm says that companies perform better if they consider the rights and concerns of multiple groups in society.

Correct AnswerverifiedShow Answer

Which of the following is not an example of stakeholders' economic power?

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

Correct AnswerverifiedShow Answer

What stakeholder group(s) can exercise legal power?

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Compare and contrast the relationships a firm may have with market and non-market stakeholders.

Correct AnswerAnswered by ExamLex AIA firm may have different types of relat...View AnswerShow Answer

A firm subscribing to the ownership theory of the firm would mainly be concerned with providing value for its:

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What is a stakeholder map? Why is it a useful tool?

Correct AnswerAnswered by ExamLex AIA stakeholder map is a visual representa...View AnswerShow Answer

The fiduciary duty of managers benefit a firm's:

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Which statement is not correct about the business-society interdependence?

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General Motors has been called a "template for 21st century capitalism."

Correct AnswerverifiedShow Answer

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

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Urgency refers to the extent to which a stakeholder's actions are seen as proper or appropriate by the broader society.

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Describe how the general systems theory can be applied to a business.

Correct AnswerAnswered by ExamLex AIThe general systems theory can be applie...View AnswerShow Answer

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Answered by ExamLex AI
A firm may have different types of relat...
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Answered by ExamLex AI
A stakeholder map is a visual representa...
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General Motors has been called a "template for 21^st century capitalism."

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Correct Answer
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Correct Answer
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Correct Answer
Answered by ExamLex AI
The general systems theory can be applie...
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