TEST BANK FOR
m m
Business and Society Stakeholders Ethics Public Policy 17th Edition By Anne La
m m m m m m m m m m m
wrence
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
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 mmultiplemgroupsminmsoc
iety.
⊚m true
⊚m false
6) Themnormativemargument mformthemstakeholdermtheorymof mthemfirmmsaysmthat mthemstakeholdermvi
ewmismsimplymammoremrealisticmdescriptionmof mhowmcompaniesmreally mwork.
⊚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 mattentionmtomstakeholde
rsmpossessingmthemleast 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-
mChoosemthemonemalternativemthatmbestmcompletesmthemstatementmormanswersmthemquestion.
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) Theminseparablemrelationshipmbetweenmbusinessm and msocietymresultsmin mwhichmof mthemfollowing
?
A) Allmbusinessmdecisionsmhavemamsocialmimpact.
B) Themvitalitymof mbusinessmdependsmonmsociety'smactionsmand mattitudes.
C) Themsurvivalmof mbusinessmismindependent mof msociety.
D) Bothm“Allmbusinessmdecisionsmhavemamsocialmimpact”mand m“Themvitalitymof mbusine
ssmdependsmonmsociety’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 mis
A) ammoremrealisticmdescriptionmof mhow mcompaniesmreallymwork.
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 mEuropeanmcountriesmrequirempublicmcompaniesmtominclu
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 La
m m m m m m m m m m m
wrence
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
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 mmultiplemgroupsminmsoc
iety.
⊚m true
⊚m false
6) Themnormativemargument mformthemstakeholdermtheorymof mthemfirmmsaysmthat mthemstakeholdermvi
ewmismsimplymammoremrealisticmdescriptionmof mhowmcompaniesmreally mwork.
⊚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 mattentionmtomstakeholde
rsmpossessingmthemleast 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-
mChoosemthemonemalternativemthatmbestmcompletesmthemstatementmormanswersmthemquestion.
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) Theminseparablemrelationshipmbetweenmbusinessm and msocietymresultsmin mwhichmof mthemfollowing
?
A) Allmbusinessmdecisionsmhavemamsocialmimpact.
B) Themvitalitymof mbusinessmdependsmonmsociety'smactionsmand mattitudes.
C) Themsurvivalmof mbusinessmismindependent mof msociety.
D) Bothm“Allmbusinessmdecisionsmhavemamsocialmimpact”mand m“Themvitalitymof mbusine
ssmdependsmonmsociety’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 mis
A) ammoremrealisticmdescriptionmof mhow mcompaniesmreallymwork.
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 mEuropeanmcountriesmrequirempublicmcompaniesmtominclu
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.
