Mastering Business & Society, 17th Edition: Stakeholders, Ethics & Public Policy Exam Prep with Complete Chapter-by-Chapter Practice Questions

COMPREHENSIVE Test Bank for Business and
Society: Stakeholders Ethics Public Policy, 17TH
Edition by Anne Lawrence, James Weber
ALL-INCLUSIVE CHAPTERS 1-19| VERIFIED EXAM
Q&As
ALL ANSWERS ARE AT THE END OF EACH CHAPTER
Ar
ch
Do




1
c

, Chapter 1: The Corporation and Its Stakeholders

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
Ar
ch
Do




2
c

,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.
Ar




⊚ true

⊚ false
ch
Do




3
c

, 14) Businesses are increasingly trying to meet their commitments to multiple stakeholders.

⊚ true

⊚ false



15) The external environment of business is static.

⊚ true

⊚ false



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
Ar




actions and attitudes‖ are correct.
ch
Do




4
c