BUS-G202 Exam 1 ACTUAL QUESTIONS
AND CORRECT ANSWERS
Corporate Social Strategy: Market Focus: - CORRECT ANSWERS✅✅Outcomes: Profit,
Sales, Market Share
Corporate Social Strategy: Non-Market Focus: - CORRECT ANSWERS✅✅Processes:
Quality Assurance, Social Reputation, Oversight
BP Profit Drivers: - CORRECT ANSWERS✅✅Customers: Franchise openings maybe
Investors: Want high returns but little guilt
Policy Makers: Company needs to self-regulate
Employees: Want to work for industry leader
Commodity Market - CORRECT ANSWERS✅✅Price and convenience are the most
important in deciding which product to purchase
BP Risks: - CORRECT ANSWERS✅✅Heightened public expectations, especially from
Non-Governmental Organizations (NGOs): ex. Greenpeace
Lobbying/Rent-Seeking: - CORRECT ANSWERS✅✅Devoting resources to influence
public policy formation in order to bring more income to your interests
Function of Lobbyists - CORRECT ANSWERS✅✅- Find political opportunities and threats
- Inform politicians and influence public opinion
- Form coalitions: identify groups with 'similar' interests
Special Interest Effect - CORRECT ANSWERS✅✅Small group of people, with incentive to
take political action, receive benefits at the expense of a large unorganized group of people
Majoritarian Politics - CORRECT ANSWERS✅✅- No special interest groups take action on
either side of the issue.
, - Lobbying: does not occur
- Example: Social Security
Client Politics - CORRECT ANSWERS✅✅- One special interest group is active in favor of
an issue
- Lobbying will likely be successful
- Example: USDA Foreign Advertising Funds
Interest Group Politics - CORRECT ANSWERS✅✅- Active special interest groups are on
both sides of the issue.
- Outcomes depend on the relative strength of lobbying
- Example: Legalizing Marijuana: (NORML versus CALM)
Entrepreneurial Politics - CORRECT ANSWERS✅✅- One special interest group is active
against an issue
- Successful lobbying will be costly
- Example: Nuclear Waste Dump
Revenue: - CORRECT ANSWERS✅✅Sales Price x Sales Quantity
Costs: - CORRECT ANSWERS✅✅Explicit Costs + Implicit Costs
Profit: - CORRECT ANSWERS✅✅Revenue - Costs
Explicit Costs: - CORRECT ANSWERS✅✅When a monetary payment is made
Implicit Costs: - CORRECT ANSWERS✅✅Involve the firm's resources, but do not have a
monetary payment
(Calculated as a NRR)
AND CORRECT ANSWERS
Corporate Social Strategy: Market Focus: - CORRECT ANSWERS✅✅Outcomes: Profit,
Sales, Market Share
Corporate Social Strategy: Non-Market Focus: - CORRECT ANSWERS✅✅Processes:
Quality Assurance, Social Reputation, Oversight
BP Profit Drivers: - CORRECT ANSWERS✅✅Customers: Franchise openings maybe
Investors: Want high returns but little guilt
Policy Makers: Company needs to self-regulate
Employees: Want to work for industry leader
Commodity Market - CORRECT ANSWERS✅✅Price and convenience are the most
important in deciding which product to purchase
BP Risks: - CORRECT ANSWERS✅✅Heightened public expectations, especially from
Non-Governmental Organizations (NGOs): ex. Greenpeace
Lobbying/Rent-Seeking: - CORRECT ANSWERS✅✅Devoting resources to influence
public policy formation in order to bring more income to your interests
Function of Lobbyists - CORRECT ANSWERS✅✅- Find political opportunities and threats
- Inform politicians and influence public opinion
- Form coalitions: identify groups with 'similar' interests
Special Interest Effect - CORRECT ANSWERS✅✅Small group of people, with incentive to
take political action, receive benefits at the expense of a large unorganized group of people
Majoritarian Politics - CORRECT ANSWERS✅✅- No special interest groups take action on
either side of the issue.
, - Lobbying: does not occur
- Example: Social Security
Client Politics - CORRECT ANSWERS✅✅- One special interest group is active in favor of
an issue
- Lobbying will likely be successful
- Example: USDA Foreign Advertising Funds
Interest Group Politics - CORRECT ANSWERS✅✅- Active special interest groups are on
both sides of the issue.
- Outcomes depend on the relative strength of lobbying
- Example: Legalizing Marijuana: (NORML versus CALM)
Entrepreneurial Politics - CORRECT ANSWERS✅✅- One special interest group is active
against an issue
- Successful lobbying will be costly
- Example: Nuclear Waste Dump
Revenue: - CORRECT ANSWERS✅✅Sales Price x Sales Quantity
Costs: - CORRECT ANSWERS✅✅Explicit Costs + Implicit Costs
Profit: - CORRECT ANSWERS✅✅Revenue - Costs
Explicit Costs: - CORRECT ANSWERS✅✅When a monetary payment is made
Implicit Costs: - CORRECT ANSWERS✅✅Involve the firm's resources, but do not have a
monetary payment
(Calculated as a NRR)
