KREFT G202 ASSESSMENT 1 TEST PAPER 2026
QUESTIONS AND VERIFIED SOLUTIONS
◉ Do investors care about the social reputation of who they invest
in? Answer: Socially-responsible investors care; they want high
returns with no guilt
◉ Industry leaders influence: Answer: if new policy is written and
shape how it is written
◉ Beyond Petroleum resulted in: Answer: heightened public
expectations, especially from non-governmental organization (NGO-
activists)
◉ BP created "shared value" by Answer: integrating societal
concerns over fossil fuels with their core market strategy
◉ Integrating societal concerns can Answer: maximize profits
◉ Lobbying/rent seeking Answer: devoting resources to influence
public policy formation in order to bring more income to your
interests
, ◉ Function of lobbyists Answer: find political opportunities and
threats, inform politicians and influence public opinion, form
coalitions: identify groups with 'similar' interests
◉ Special interest effect Answer: small group of people, with
incentive to take political action, receive benefits at the expense of a
large unorganized group of people
◉ Majoritarian politics Answer: Widely dispersed costs and widely
dispersed benefits; no special interest groups take action on either
side of the issue; lobbying does not occur
◉ Client politics Answer: Widely dispersed costs and concentrated
benefits; one special interest group is active in favor of an issue;
lobbying will likely be successful
◉ Entrepreneurial politics Answer: Concentrated costs and widely
dispersed benefits; one special interest group is active against an
issue
◉ Interest group politics Answer: Concentrated costs and
concentrated benefits; active special interest groups are on both
sides of the issue; outcomes depend on the relative strength of
lobbying
QUESTIONS AND VERIFIED SOLUTIONS
◉ Do investors care about the social reputation of who they invest
in? Answer: Socially-responsible investors care; they want high
returns with no guilt
◉ Industry leaders influence: Answer: if new policy is written and
shape how it is written
◉ Beyond Petroleum resulted in: Answer: heightened public
expectations, especially from non-governmental organization (NGO-
activists)
◉ BP created "shared value" by Answer: integrating societal
concerns over fossil fuels with their core market strategy
◉ Integrating societal concerns can Answer: maximize profits
◉ Lobbying/rent seeking Answer: devoting resources to influence
public policy formation in order to bring more income to your
interests
, ◉ Function of lobbyists Answer: find political opportunities and
threats, inform politicians and influence public opinion, form
coalitions: identify groups with 'similar' interests
◉ Special interest effect Answer: small group of people, with
incentive to take political action, receive benefits at the expense of a
large unorganized group of people
◉ Majoritarian politics Answer: Widely dispersed costs and widely
dispersed benefits; no special interest groups take action on either
side of the issue; lobbying does not occur
◉ Client politics Answer: Widely dispersed costs and concentrated
benefits; one special interest group is active in favor of an issue;
lobbying will likely be successful
◉ Entrepreneurial politics Answer: Concentrated costs and widely
dispersed benefits; one special interest group is active against an
issue
◉ Interest group politics Answer: Concentrated costs and
concentrated benefits; active special interest groups are on both
sides of the issue; outcomes depend on the relative strength of
lobbying
