Test Bank for Business and Society 17th Edition 2026 Update – Stakeholders, Ethics & Public Policy by Anne Lawrence – Chapters

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Test Bank for Business and
Society Stakeholders
Ethics Public Policy 17th
Edition by Anne Lawrence
Chapters 1‑19



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Test Bank for
1 Business and Society Stakeholders Ethics Public Policy 17th Edition by Anne Lawrence Chapters 1‑19.pdf

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TEST BANK FOR
Business and Society Stakeholders Ethics Public Policy 17th Edition By Anne
Lawrence
Chapter 1-19 Answers are at the end of Each chapter

Chapter 1

Student name:
TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false.
1) A business is any organization that is engaged in making a product or providing a service for
a profit.
⊚ true
⊚ false



2) The term stakeholder refers exclusively to the founders of a business organization.
⊚ true
⊚ false

3) Businesses and society are independent of each other.
⊚ true
⊚ false

4) The stakeholder theory of the firm argues that a firm’s sole purpose is to create long-term
value for its shareholders.
⊚ true
⊚ false

5) 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.
⊚ true
⊚ false

6) 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.
⊚ true
⊚ false




TEST BANK
Page
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2 Business and Society Stakeholders Ethics Public Policy 17th Edition2 By Anne Lawrence Chapter 1-19 Answers are at the end of Each chapter.pdf

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17th 17th
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By Anne
By Anne
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Lawrence
Chapter
Chapter
1-19 1-19
Answers
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7) Nonmarket stakeholders are those that engage in economic transactions with the company as
it carries out its primary purpose of providing society with goods and services.
⊚ true
⊚ false

8) Market stakeholders include nongovernmental organizations and business support groups.
⊚ true
⊚ false

9) Government can be considered both a market and a nonmarket stakeholder.
⊚ true
⊚ false

10) The interests of different stakeholders often coincide.
⊚ true
⊚ false

11) The first step of stakeholder analysis is to identify relevant stakeholders.
⊚ true
⊚ false

12) Some scholars have suggested that managers pay the most attention to stakeholders
possessing the least salience.
⊚ true
⊚ false

13) The organization of a corporation’s boundary-spanning functions is complex.
⊚ true
⊚ false

14) Businesses are increasingly trying to meet their commitments to multiple stakeholders.
⊚ true
⊚ false

15) The external environment of business is static.
⊚ true
⊚ false




TEST BANK
Page
FOR
3 Business and Society Stakeholders Ethics Public Policy 17th Edition3 By Anne Lawrence Chapter 1-19 Answers are at the end of Each chapter.pdf

, TESTTEST
BANKBANK
FORFOR
Business
Business
and Society
and Society
Stakeholders
Stakeholders
Ethics
Ethics
Public
Public
Policy
Policy
17th 17th
Edition
Edition
By Anne
By Anne
Lawrence
Lawrence
Chapter
Chapter
1-19 1-19
Answers
Answers
are atare
theatend
the of
endEach
2026-03-31
of Each
chapter.pdf
chapter




MULTIPLE CHOICE - Choose the one alternative that best completes the statement or
answers the question.
16) The relationship between business and society is most accurately described by which
statement?
A) Business is an unbounded entity within the larger bounded entity of society.
B) Society is a distinct bounded entity within the larger bounded entity of business.
C) Business is a distinct bounded entity separate from the bounded entity of society.
D) Business is a distinct bounded entity within the larger bounded entity of society.

17) According to general systems theory, boundary exchanges are exemplified by which of the
following?
A) An industrial company installs new equipment in its plant to comply with
environmental regulations.
B) A software company develops an application for a client.
C) A purchasing department employee negotiates a price on parts with a supplier.
D) All of these choices are correct.

18) The inseparable relationship between business and society results in which of the following?
A) All business decisions have a social impact.
B) The vitality of business depends on society's actions and attitudes.
C) The survival of business is independent of society.
D) Both “All business decisions have a social impact” and “The vitality of business
depends on society’s actions and attitudes” are correct.

19) Which of the following statements is not true about the interactive social system?
A) Business and society need, as well as influence, each other.
B) The boundary between business and society is clear and distinct.
C) Business is a part of society, and society penetrates far and often into business.
D) Business and society are both separate and connected.

20) A firm subscribing to the shareholder theory of the firm would mainly be concerned with
providing long-term value for its
A) investors.
B) customers.
C) board of Directors.
D) community.




TEST BANK
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FOR
4 Business and Society Stakeholders Ethics Public Policy 17th Edition4 By Anne Lawrence Chapter 1-19 Answers are at the end of Each chapter.pdf