TEST BANK FOR
m m
Business and Society Stakeholders Ethics Public Policy 17th Edition By Anne Lawr
m m m m m m m m m m m
ence
Chapter 1- m
19 Answers are at the end of Each chapter Chapter 1
m m m m m m m m m m
Student name:
m m
TRUE/FALSE m-mWritem'T'mif mthemstatementmismtruemandm'F'mif mthemstatementmismfalse.
1) A mbusinessmismanymorganizationmthat mismengaged minmmakingmamproduct mormprovidingmamservicem
formamprofit.
⊚m true
⊚m false
2) Themtermmstakeholdermrefersmexclusivelymtomthemfoundersmof mambusinessmorganization.
⊚m true
⊚m false
3) Businessesmand msocietymaremindependent mof meachmother.
⊚m true
⊚m false
4) Themstakeholdermtheorymof mthemfirmmarguesmthat mamfirm’smsolempurposemismtomcreatemlong-
termmvaluemformitsmshareholders.
⊚m true
⊚m false
5) Theminstrumentalmargument mformthemstakeholdermtheorymof mthemfirmmsaysmthat mcompani
esmperformmbettermif mtheymconsidermthemrightsmand mconcernsmof mmultiplemgroupsminmsoci
ety.
⊚m true
⊚m false
6) Themnormativemargument mformthemstakeholdermtheorymof mthemfirmmsaysmthat mthemstakeholdermvi
ewmismsimplymammoremrealisticmdescriptionm of mhowmcompaniesm reallymwork.
⊚m true
⊚m false
,7) Nonmarket mstakeholdersmaremthosemthat mengageminmeconomicmtransactionsmwithmthemcompanym
asmit mcarriesmout mitsmprimarympurposemof mprovidingmsocietymwithmgoodsmand mservices.
⊚m true
⊚m false
8) Market mstakeholdersmincludemnongovernmentalmorganizationsmand mbusinessmsupport mgroups.
⊚m true
⊚m false
9) Government mcanmbemconsidered mbothmammarket mand mamnonmarket mstakeholder.
⊚m true
⊚m false
10) Theminterestsmof mdifferent mstakeholdersmoftenmcoincide.
⊚m true
⊚m false
11) Themfirst mstepmof mstakeholdermanalysismismtomidentifymrelevant mstakeholders.
⊚m true
⊚m false
12) Somemscholarsmhavemsuggested mthat mmanagersmpaymthemmost mattentionmtomstakehold
ersmpossessingmthemleast msalience.
⊚m true
⊚m false
13) Themorganizationmof mamcorporation’smboundary-spanningmfunctionsmismcomplex.
⊚m true
⊚m false
14) Businessesmaremincreasinglymtryingmtommeet mtheirmcommitmentsmtommultiplemstakeholders.
⊚m true
⊚m false
15) Themexternalmenvironment mof mbusinessmismstatic.
⊚m true
⊚m false
,MULTIPLEmCHOICEm-
mChoosemthemonemalternativemthatmbestmcompletesmthemstatementmorm answersmthemquestion
.
16) Themrelationshipmbetweenmbusinessmand msocietymismmost maccuratelymdescribed mbymwhi
chmstatement?
A) Businessmismanmunbounded mentitymwithinmthemlargermbounded mentitymof msociety.
B) Societymismamdistinct mbounded mentitymwithinmthemlargermbounded mentitymof mbusiness.
C) Businessmismamdistinct mbounded mentitymseparatemfrommthembounded mentitymof msociety.
D) Businessmismamdistinct mbounded mentitymwithinmthemlargermbounded mentitymof msociety.
17) Accordingmtomgeneralmsystemsmtheory,mboundarymexchangesmaremexemplified mbymwhichmof mt
hemfollowing?
A) Anmindustrialmcompanyminstallsmnew mequipment minmitsmplant mtomcomplymwi
thmenvironmentalmregulations.
B) A msoftwaremcompanymdevelopsmanmapplicationmformamclient.
C) A mpurchasingmdepartment memployeemnegotiatesmampricemonmpartsmwithmamsupplier.
D) Allmof mthesemchoicesmaremcorrect.
18) Theminseparablemrelationshipmbetweenmbusinessmand msocietymresultsminmwhich mof mthemfollowing?
A) Allmbusinessmdecisionsmhavemamsocialmimpact.
B) Themvitalitymof mbusinessmdependsmonmsociety'smactionsmand mattitudes.
C) Themsurvivalmof mbusinessmismindependent mof msociety.
D) Bothm“Allmbusinessmdecisionsmhavemamsocialmimpact”mand m“Themvitalitymof mbusin
essmdependsmonmsociety’smactionsmand mattitudes”maremcorrect.
19) Whichmof mthemfollowingmstatementsmismnotmtruemabout mtheminteractivemsocialmsystem?
A) Businessmand msocietymneed,masmwellmasminfluence,meachmother.
B) Themboundarymbetweenmbusinessmand msocietymismclearmand mdistinct.
C) Businessmismampart mof msociety,mand msocietympenetratesmfarmand moftenmintombusiness.
D) Businessmand msocietymarembothmseparatemand mconnected.
20) A mfirmmsubscribingmtomthemshareholdermtheorymof mthemfirmmwould mmainlymbemconcerned mw
ithmprovidingmlong-termmvaluemformits
A) investors.
B) customers.
C) board mof mDirectors.
D) community.
, 21) Corporationsmthat mfollow mthemstakeholdermtheorymof mthemfirmmcreatemvaluemby
A) constantlyminnovatingmnew mproducts.
B) increasingmtheirmstockmprice.
C) developingmtheirmemployees’mskills.
D) Allmof mthesemchoicesmaremcorrect.
22) Whichmargument msaysmthat mstakeholdermmanagement mrealisticallymdepictsmhow mcompani
esmreallymwork?
A) descriptivemargument
B) instrumentalmargument
C) normativemargument
D) fiduciarymargument
23) Theminstrumentalmargument mstatesmthat mstakeholdermmanagement m
is
A) ammoremrealisticmdescriptionmof mhowmcompaniesmreallymwork.
B) moremeffectivemasmamcorporatemstrategy.
C) simplymthemright mthingmtomdo.
D) determined mbymthemamount mof mstockmissued.
24) Themfiduciarymdutymof mmanagersmbenefitsmamfirm's
A) shareholders.
B) customers.
C) employees.
D) Allmof mthesemchoicesmaremcorrect.
25) Themmainmreasonmamnumbermof mEuropeanmcountries mrequirempublicmcompaniesmtominclu
dememployeemmembersmonmtheirmboardsmof mdirectorsmismthat
A) thememployeesmwillmbemavailablemtomanswermothermboard mmembers'mquestions.
B) management mwillmnot mhavemtomattend mthemmeetings.
C) employees'minterestsmwillmbemexplicitlymrepresented.
D) employeesmwillmhavemmorempowermthanmanymothermstakeholder.
26) Stakeholdermgroupsmcanminclude
A) shareholders.
B) businessmsupport mgroups.
C) environmentalmactivists.
D) Allmof mthesemchoicesmaremcorrect.
m m
Business and Society Stakeholders Ethics Public Policy 17th Edition By Anne Lawr
m m m m m m m m m m m
ence
Chapter 1- m
19 Answers are at the end of Each chapter Chapter 1
m m m m m m m m m m
Student name:
m m
TRUE/FALSE m-mWritem'T'mif mthemstatementmismtruemandm'F'mif mthemstatementmismfalse.
1) A mbusinessmismanymorganizationmthat mismengaged minmmakingmamproduct mormprovidingmamservicem
formamprofit.
⊚m true
⊚m false
2) Themtermmstakeholdermrefersmexclusivelymtomthemfoundersmof mambusinessmorganization.
⊚m true
⊚m false
3) Businessesmand msocietymaremindependent mof meachmother.
⊚m true
⊚m false
4) Themstakeholdermtheorymof mthemfirmmarguesmthat mamfirm’smsolempurposemismtomcreatemlong-
termmvaluemformitsmshareholders.
⊚m true
⊚m false
5) Theminstrumentalmargument mformthemstakeholdermtheorymof mthemfirmmsaysmthat mcompani
esmperformmbettermif mtheymconsidermthemrightsmand mconcernsmof mmultiplemgroupsminmsoci
ety.
⊚m true
⊚m false
6) Themnormativemargument mformthemstakeholdermtheorymof mthemfirmmsaysmthat mthemstakeholdermvi
ewmismsimplymammoremrealisticmdescriptionm of mhowmcompaniesm reallymwork.
⊚m true
⊚m false
,7) Nonmarket mstakeholdersmaremthosemthat mengageminmeconomicmtransactionsmwithmthemcompanym
asmit mcarriesmout mitsmprimarympurposemof mprovidingmsocietymwithmgoodsmand mservices.
⊚m true
⊚m false
8) Market mstakeholdersmincludemnongovernmentalmorganizationsmand mbusinessmsupport mgroups.
⊚m true
⊚m false
9) Government mcanmbemconsidered mbothmammarket mand mamnonmarket mstakeholder.
⊚m true
⊚m false
10) Theminterestsmof mdifferent mstakeholdersmoftenmcoincide.
⊚m true
⊚m false
11) Themfirst mstepmof mstakeholdermanalysismismtomidentifymrelevant mstakeholders.
⊚m true
⊚m false
12) Somemscholarsmhavemsuggested mthat mmanagersmpaymthemmost mattentionmtomstakehold
ersmpossessingmthemleast msalience.
⊚m true
⊚m false
13) Themorganizationmof mamcorporation’smboundary-spanningmfunctionsmismcomplex.
⊚m true
⊚m false
14) Businessesmaremincreasinglymtryingmtommeet mtheirmcommitmentsmtommultiplemstakeholders.
⊚m true
⊚m false
15) Themexternalmenvironment mof mbusinessmismstatic.
⊚m true
⊚m false
,MULTIPLEmCHOICEm-
mChoosemthemonemalternativemthatmbestmcompletesmthemstatementmorm answersmthemquestion
.
16) Themrelationshipmbetweenmbusinessmand msocietymismmost maccuratelymdescribed mbymwhi
chmstatement?
A) Businessmismanmunbounded mentitymwithinmthemlargermbounded mentitymof msociety.
B) Societymismamdistinct mbounded mentitymwithinmthemlargermbounded mentitymof mbusiness.
C) Businessmismamdistinct mbounded mentitymseparatemfrommthembounded mentitymof msociety.
D) Businessmismamdistinct mbounded mentitymwithinmthemlargermbounded mentitymof msociety.
17) Accordingmtomgeneralmsystemsmtheory,mboundarymexchangesmaremexemplified mbymwhichmof mt
hemfollowing?
A) Anmindustrialmcompanyminstallsmnew mequipment minmitsmplant mtomcomplymwi
thmenvironmentalmregulations.
B) A msoftwaremcompanymdevelopsmanmapplicationmformamclient.
C) A mpurchasingmdepartment memployeemnegotiatesmampricemonmpartsmwithmamsupplier.
D) Allmof mthesemchoicesmaremcorrect.
18) Theminseparablemrelationshipmbetweenmbusinessmand msocietymresultsminmwhich mof mthemfollowing?
A) Allmbusinessmdecisionsmhavemamsocialmimpact.
B) Themvitalitymof mbusinessmdependsmonmsociety'smactionsmand mattitudes.
C) Themsurvivalmof mbusinessmismindependent mof msociety.
D) Bothm“Allmbusinessmdecisionsmhavemamsocialmimpact”mand m“Themvitalitymof mbusin
essmdependsmonmsociety’smactionsmand mattitudes”maremcorrect.
19) Whichmof mthemfollowingmstatementsmismnotmtruemabout mtheminteractivemsocialmsystem?
A) Businessmand msocietymneed,masmwellmasminfluence,meachmother.
B) Themboundarymbetweenmbusinessmand msocietymismclearmand mdistinct.
C) Businessmismampart mof msociety,mand msocietympenetratesmfarmand moftenmintombusiness.
D) Businessmand msocietymarembothmseparatemand mconnected.
20) A mfirmmsubscribingmtomthemshareholdermtheorymof mthemfirmmwould mmainlymbemconcerned mw
ithmprovidingmlong-termmvaluemformits
A) investors.
B) customers.
C) board mof mDirectors.
D) community.
, 21) Corporationsmthat mfollow mthemstakeholdermtheorymof mthemfirmmcreatemvaluemby
A) constantlyminnovatingmnew mproducts.
B) increasingmtheirmstockmprice.
C) developingmtheirmemployees’mskills.
D) Allmof mthesemchoicesmaremcorrect.
22) Whichmargument msaysmthat mstakeholdermmanagement mrealisticallymdepictsmhow mcompani
esmreallymwork?
A) descriptivemargument
B) instrumentalmargument
C) normativemargument
D) fiduciarymargument
23) Theminstrumentalmargument mstatesmthat mstakeholdermmanagement m
is
A) ammoremrealisticmdescriptionmof mhowmcompaniesmreallymwork.
B) moremeffectivemasmamcorporatemstrategy.
C) simplymthemright mthingmtomdo.
D) determined mbymthemamount mof mstockmissued.
24) Themfiduciarymdutymof mmanagersmbenefitsmamfirm's
A) shareholders.
B) customers.
C) employees.
D) Allmof mthesemchoicesmaremcorrect.
25) Themmainmreasonmamnumbermof mEuropeanmcountries mrequirempublicmcompaniesmtominclu
dememployeemmembersmonmtheirmboardsmof mdirectorsmismthat
A) thememployeesmwillmbemavailablemtomanswermothermboard mmembers'mquestions.
B) management mwillmnot mhavemtomattend mthemmeetings.
C) employees'minterestsmwillmbemexplicitlymrepresented.
D) employeesmwillmhavemmorempowermthanmanymothermstakeholder.
26) Stakeholdermgroupsmcanminclude
A) shareholders.
B) businessmsupport mgroups.
C) environmentalmactivists.
D) Allmof mthesemchoicesmaremcorrect.
