Chapter 1—The Business and Society Relationship York University ADMS 3660

Chapter 1—The Business and Society Relationship

TRUE/FALSE

1. Business can do just about anything it wants because we do not live in a socially conscious
environment.

ANS: F PTS: 1 REF: 4
NAT: AACSB Ethics | Ethical Responsibilities

2. The business environment in current times, the first decade of the 21st century, can best be described
as turbulent.

ANS: T PTS: 1 REF: 5
NAT: AACSB Analytic | Environmental Influence

3. When speaking of business in the collective sense, the textbook will most often be focusing on big
business.

ANS: T PTS: 1 REF: 5 NAT: AACSB Analytic

4. Pluralism is a condition in which there is a concentration of power among society's groups and
organizations.

ANS: F PTS: 1 REF: 8
NAT: AACSB Analytic | Group Dynamics

5. Stakeholders are the owners of shares in a corporation.

ANS: F PTS: 1 REF: 10
NAT: AACSB Analytic | Environmental Influence

6. Common Cause and the U. S. Chamber of Commerce are examples of general purpose interest groups.

ANS: T PTS: 1 REF: 10
NAT: AACSB Analytic | Environmental Influence

7. Business interacts with only a limited number of stakeholder groups.

ANS: F PTS: 1 REF: 9-10
NAT: AACSB Analytic | Environmental Influence

8. Affluence refers to the level of wealth, disposable income, and standard of living of a society.

ANS: T PTS: 1 REF: 12
NAT: AACSB Analytic | Environmental Influence

9. The authors of the textbook lay the primary responsibility for business's problems on the media.

ANS: F PTS: 1 REF: 15
NAT: AACSB Analytic | Environmental Influence

, 10. The common perception of business power is that there is too little of it to provide a balance with other
social institutions.

ANS: F PTS: 1 REF: 19
NAT: AACSB Analytic | Group Dynamics

11. Power is only manifest when it is used purposefully.

ANS: F PTS: 1 REF: 20-21
NAT: AACSB Analytic | Environmental Influence

12. The social contract is the set of rights and duties imposed on citizens by their government.

ANS: F PTS: 1 REF: 23
NAT: AACSB Analytic | Group Dynamics

13. The social contract in the modern era is changing rapidly and dramatically.

ANS: T PTS: 1 REF: 23
NAT: AACSB Analytic | Group Dynamics

14. Ethics refers to issues of right and wrong, fairness, and justice.

ANS: T PTS: 1 REF: 25
NAT: AACSB Ethics | Ethical Responsibilities

15. The Iron Law of Responsibility states that people who use power wisely will be rewarded with more
power.

ANS: F PTS: 1 REF: 22
NAT: AACSB Analytic | Environmental Influence

16. The percentage of the U. S. population that has earned high school diplomas and college degrees has
remained about the same over the last thirty years.

ANS: F PTS: 1 REF: 13
NAT: AACSB Analytic | Environmental Influence

17. News shows are the only type of programming on television that has contributed to criticism of
business.

ANS: F PTS: 1 REF: 13-15
NAT: AACSB Analytic | Environmental Influence

18. A child's assumption that he or she will have a higher standard of living than the previous generation is
called the revolution of rising expectations.

ANS: T PTS: 1 REF: 15
NAT: AACSB Analytic | Individual Dynamics

19. The principal internal stakeholders of a corporation are its customers and employees.

ANS: F PTS: 1 REF: 27
NAT: AACSB Analytic | Environmental Influence