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TESTBANK for Foundations of Sustainable Business Theory Function and Strategy 2nd Edition by Nada R. Sanders

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, TESTBANK for Foundations of Sustainable
Business Theory Function and Strategy 2nd
Edition by Nada R. Sanders
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,Foundations of Sustainable Business, Second Edition Test Bank


Chapter 1

Multiple Choice Questions


1) Sustainability requires today’s generation to steward __________ for the benefit of future
generations.
a. Success
b. Entrepreneurship
c. Natural resources
d. Products and services

Correct answer: c
Difficulty Level: easy
Reference: 1.1.1, definition of key term “principle of stewardship”
Bloom’s Taxonomy Code: Comprehension
Learning Objective: 1.1 Define sustainability and explain its relevance to business.


2) The triple bottom line consists of ______, _______, and _______ metrics of organizational
success.
a. Competition, innovation, risk
b. Risk, reward, opportunity
c. Management, operations, marketing
d. Social, economic, environmental

Correct answer: d
Difficulty Level: easy
Reference: 1.1.1, definition of key term “triple bottom line”
Bloom’s Taxonomy Code: Knowledge
Learning Objective: 1.1 Define sustainability and explain its relevance to business.


3) Sustainable business is characterized by the trend of measuring and managing success in
terms of _____, ______, and ______ performance.
a. Risk, marketing, financial
b. Social, economic, environmental
c. Operations, supply chain, leadership
d. Employee, supplier, managerial

Correct answer: b
Difficulty Level: medium
Reference: 1.1.1, definition of key term “sustainable business”
Bloom’s Taxonomy Code: Comprehension
Learning Objective: 1.1 Define sustainability and explain its relevance to business.


4) Small and Mid-sized Enterprises (SMEs) are responsible for _____ of global industrial
pollution.
a. 60-70%
b. Very little
c. Disposal
d. Outsourcing




Copyright ©2020 John Wiley & Sons, Inc. 1-1

,Foundations of Sustainable Business, Second Edition Test Bank


Correct answer: a
Difficulty Level: medium
Reference: 1.1.1, Global Insight: Sustainability at Small and Mid-sized Enterprises
Bloom’s Taxonomy Code: Comprehension
Learning Objective: 1.1 Define sustainability and explain its relevance to business.


5) Global human population and per capita consumption levels are _______.
a. Optimistic
b. Decreasing
c. Uncertain
d. Increasing

Correct answer: d
Difficulty Level: easy
Reference: 1.1.2, Figure 1.1
Bloom’s Taxonomy Code: Application
Learning Objective: 1.1 Define sustainability and explain its relevance to business.


6) Developed economies are responsible for substantially greater levels of ______ than
developing economies.
a. Income equality
b. Inequality
c. Aggregate consumption
d. Insider trading

Correct answer: c
Difficulty Level: medium
Reference: 1.1.2, Figure 1.1
Bloom’s Taxonomy Code: Knowledge
Learning Objective: 1.1 Define sustainability and explain its relevance to business.


7) Natural capital is the ______ of natural resources upon which human life and economic
activities depend.
a. Deficit
b. Available stock
c. Management
d. Stewardship

Correct answer: b
Difficulty Level: medium
Reference: 1.1.2, definition of key term “natural capital”
Bloom’s Taxonomy Code: Knowledge
Learning Objective: 1.1 Define sustainability and explain its relevance to business.


8) A negative externality is created when an organization’s activities generate a risk that is
shifted to a third-party without that party’s _______ or _______.
a. Forethought, intention
b. Consent, compensation
c. Disapproval, regret
d. Knowledge, injury

Correct answer: b



Copyright ©2020 John Wiley & Sons, Inc. 1-2

,Foundations of Sustainable Business, Second Edition Test Bank


Difficulty Level: medium
Reference: 1.1.4, definition of key term “negative externality”
Bloom’s Taxonomy Code: Comprehension
Learning Objective: 1.1 Define sustainability and explain its relevance to business.


9) Ray Anderson founded one of the world’s largest carpet manufacturing companies, and
launched “Mission Zero,” a campaign to ______ the company’s environmental impacts.
a. Monitor
b. Partially reduce
c. Completely eliminate
d. Market

Correct answer: c
Difficulty Level: easy
Reference: 1.1.2, Leadership call-out box
Bloom’s Taxonomy Code: Knowledge
Learning Objective: 1.1 Define sustainability and explain its relevance to business.


10) According to the 2012 WWF Living Planet Report, humanity’s projected resource
consumption levels “______ our planet’s capacity to sustain us.”
a. Underscore
b. Provide
c. Exceed
d. Are less than

Correct answer: c
Difficulty Level: easy
Reference: 1.1.2, text accompanying Figure 1.2
Bloom’s Taxonomy Code: Knowledge
Learning Objective: 1.2 Articulate how global trends drive sustainability in the private sector.


11) The human population’s ______ now surpasses the available biocapacity of the planet.
a. Productivity
b. Resilience
c. Genius
d. Ecological footprint

Correct answer: d
Difficulty Level: easy
Reference: 1.1.2, Figure 1.3 and Figure 1.4
Bloom’s Taxonomy Code: Knowledge
Learning Objective: 1.2 Articulate how global trends drive sustainability in the private sector.


12) Global primary production and processing sectors generate $7.3 trillion in ______ annually.
a. Profit
b. Revenue
c. Shareholder dividends
d. Externalities

Correct answer: d
Difficulty Level: hard
Reference: 1.2.1, Ethical Decisions call-out box



Copyright ©2020 John Wiley & Sons, Inc. 1-3

,Foundations of Sustainable Business, Second Edition Test Bank


Bloom’s Taxonomy Code: Knowledge
Learning Objective: 1.2 Articulate how global trends drive sustainability in the private sector.


13) The Global Living Planet Index is a(n) ______ assessment of the vitality of the planet given
the impact of _____.
a. Financial, the economic recession
b. Invalid, climate change
c. Science-based, human activity
d. Economics-based, natural events

Correct answer: c
Difficulty Level: medium
Reference: 1.1.2, definition of key term “Global Living Planet Index”
Bloom’s Taxonomy Code: Comprehension
Learning Objective: 1.2 Articulate how global trends drive sustainability in the private sector.


14) Sustainability is a global megatrend, driven by ______ forces.
a. Technological
b. Social and political
c. Economic and environmental
d. All of the above

Correct answer: d
Difficulty Level: medium
Reference: 1.1.3, first paragraph
Bloom’s Taxonomy Code: Comprehension
Learning Objective: 1.2 Articulate how global trends drive sustainability in the private sector.


15) The general trend in sustainable business practices is to ________.
a. Do less bad and more good
b. Increase managerial control
c. Leverage assets
d. Externalize risk

Correct answer: a
Difficulty Level: easy
Reference: 1.1.3
Bloom’s Taxonomy Code: Application
Learning Objective: 1.2 Articulate how global trends drive sustainability in the private sector.


16) Overconsumption of natural resources occurs when ______ exceeds ______.
a. Yield, harvest
b. supply, demand
c. Ecological footprint, biocapacity
d. Carbon emissions, regulatory limits

Correct answer: c
Difficulty Level: medium
Reference: 1.1.2, Figure 1.3
Bloom’s Taxonomy Code: Comprehension
Learning Objective: 1.2 Articulate how global trends drive sustainability in the private sector.




Copyright ©2020 John Wiley & Sons, Inc. 1-4

,Foundations of Sustainable Business, Second Edition Test Bank



17) The world’s food supply depends upon productive fisheries, about half of which are _____.
a. Abundant
b. Fully exploited
c. Unknown
d. Over-regulated

Correct answer: b
Difficulty Level: hard
Reference: 1.1.4, statistic from the Food and Agricultural Organization of the United Nations
Bloom’s Taxonomy Code: Comprehension
Learning Objective: 1.2 Articulate how global trends drive sustainability in the private sector.


18) Environmental, social, and governance issues have become ______ to investors.
a. Enablers
b. Irrelevant
c. Material
d. Opaque

Correct answer: c
Difficulty Level: medium
Reference: 1.2.2, text accompanying Figure 1.5
Bloom’s Taxonomy Code: Knowledge
Learning Objective: 1.2 Articulate how global trends drive sustainability in the private sector.


19) Shareholder resolutions concerning environmental, social, and governance issues ______
from 1999 to 2009.
a. Plateaued
b. Increased
c. Decreased
d. Ceased

Correct answer: b
Difficulty Level: medium
Reference: 1.2.2, Figure 1.5
Bloom’s Taxonomy Code: Comprehension
Learning Objective: 1.2 Articulate how global trends drive sustainability in the private sector.


20) Business representatives attending the Rio+20 Summit on Sustainability voted to _______
certain statements of principle and action related to sustainable business.
a. Oppose
b. Repeal
c. Amend
d. Support

Correct answer: d
Difficulty Level: easy
Reference: 1.2.4
Bloom’s Taxonomy Code: Comprehension
Learning Objective: 1.2 Articulate how global trends drive sustainability in the private sector.




Copyright ©2020 John Wiley & Sons, Inc. 1-5

,Foundations of Sustainable Business, Second Edition Test Bank


21) Five stages of sustainable business maturation, from basic to advanced, are defined by the
following motives: profit, philanthropy, _______, _______, and _______.
a. Management, innovation, strategy
b. Media, projects, investments
c. Investment, risk, profit
d. Marketing, control, responsibility

Correct answer: d
Difficulty Level: hard
Reference: 1.3.2, Table 1.2
Bloom’s Taxonomy Code: Knowledge
Learning Objective: 1.3 Distinguish between the levels of commitment to sustainable business.


22) Internalizing a risk means that the party who creates a risk ultimately _____ for it.
a. Gets compensated
b. Gets insurance benefits
c. Takes responsibility
d. Gets sued

Correct answer: c
Difficulty Level: medium
Reference: 1.2.1, definition of key term “internalize”
Bloom’s Taxonomy Code: Comprehension
Learning Objective: 1.3 Distinguish between the levels of commitment to sustainable business.


23) The “gearing up” metaphor represents these four successive attitudes toward the business
case for sustainability:
a. Complying, benchmarking, partnering, integrating
b. Opposing, accepting, complying, exceeding
c. Discussing, planning, implementing, reviewing
d. None of the above

Correct answer: a
Difficulty Level: hard
Reference: 1.3.3, Table 1.3
Bloom’s Taxonomy Code: Knowledge
Learning Objective: 1.3 Distinguish between the levels of commitment to sustainable business.


24) As organizational commitment to sustainability matures, old priorities such as legal
compliance are ______ while new priorities are added.
a. Abandoned
b. Included
c. Ignored
d. Controlling

Correct answer: b
Difficulty Level: medium
Reference: 1.3.3, paragraph following Table 1.3
Bloom’s Taxonomy Code: Application
Learning Objective: 1.3 Distinguish between the levels of commitment to sustainable business.




Copyright ©2020 John Wiley & Sons, Inc. 1-6

,Foundations of Sustainable Business, Second Edition Test Bank


25) Sustainability initiatives were initially challenged because they were perceived as ______ to
core business activities, they proceeded _______ in fits and starts, and existing incentive
structures made these initiatives appear _______.
a. Senior, wholesale, strategic
b. Peripheral, incrementally, uneconomical
c. Prior, rapidly, lucrative
d. Detrimental, long term, outdated

Correct answer: b
Difficulty Level: hard
Reference: 1.3.1, first paragraph
Bloom’s Taxonomy Code: Comprehension
Learning Objective: 1.3 Distinguish between the levels of commitment to sustainable business.


26) The “gearing up” metaphor describes organizational _______.
a. Stasis
b. Acceleration
c. Culture
d. Transformation

Correct answer: d
Difficulty Level: medium
Reference: 1.3.3, second paragraph
Bloom’s Taxonomy Code: Comprehension
Learning Objective: 1.3 Distinguish between the levels of commitment to sustainable business.


27) Even the most advanced level of private sector commitment to public health and
environmental protection is driven by the traditional ______ motive.
a. Ethical
b. Defense
c. Profit
d. Competition

Correct answer: c
Difficulty Level: easy
Reference: 1.3.2, Table 1.2 and accompanying text; IV.A., first paragraph
Bloom’s Taxonomy Code: Knowledge
Learning Objective: 1.4 Make the business case for sustainability.


28) When compared to traditional product market share, sustainable product market share
growth is ______ in food production and construction market sectors.
a. Dominating
b. Diminishing
c. Losing
d. Slowly Growing

Correct answer: a
Difficulty Level: medium
Reference: 1.4.1, Table 1.4
Bloom’s Taxonomy Code: Comprehension
Learning Objective: 1.4 Make the business case for sustainability.




Copyright ©2020 John Wiley & Sons, Inc. 1-7

, Foundations of Sustainable Business, Second Edition Test Bank


29) According to the Rio+20 Summit on Sustainability, businesses should focus less on ______
and more on ______.
a. Philanthropy, Profit
b. Short-term competitiveness, long-term performance
c. Water issues, climate change
d. Fisheries, Rainforest conservation

Correct answer: b
Difficulty Level: medium
Reference: 1.2.4, definition of key term “Rio+20 Summit on Sustainability” and accompanying
discussion
Bloom’s Taxonomy Code: Comprehension
Learning Objective: 1.4 Make the business case for sustainability.


30) In the energy sector between 2002 and 2011, consumption of renewable energy grew by
over _____, while non-renewable energy consumption ________.
a. 50%, slightly increased
b. 10%, increased
c. 400%, decreased
d. 30%, greatly decreased

Correct answer: c
Difficulty Level: hard
Reference: 1.4.1, Table 1.4 and accompanying text.
Bloom’s Taxonomy Code: Knowledge
Learning Objective: 1.4 Make the business case for sustainability.


31) Between 2005 and 2011, ______ building construction grew by 1700% despite a 17%
contraction in the overall construction market.
a. Traditional
b. International
c. Domestic
d. Sustainable

Correct answer: d
Difficulty Level: medium
Reference: 1.4.1, Table 1.4
Bloom’s Taxonomy Code: Comprehension
Learning Objective: 1.4 Make the business case for sustainability.


32) Between 2002 and 2011, sales of ______ vehicles grew by 646%, while the overall vehicle
market ______ by 15%.
a. Hybrid, decreased
b. Imported, decreased
c. Luxury, decreased
d. Hybrid, increased

Correct answer: a
Difficulty Level: medium
Reference: 1.4.1, Table 1.4
Bloom’s Taxonomy Code: Comprehension
Learning Objective: 1.4 Make the business case for sustainability.




Copyright ©2020 John Wiley & Sons, Inc. 1-8

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