question

Walmart has been called a "template for 21st century capitalism."

answer

False

question

A business is any organization that is engaged in making a product or providing a service for a profit.

answer

True

question

Businesses and society are independent of one another.

answer

False

question

The stakeholder theory of the firm argues that a firm's sole purpose is to create value for its shareholders.

answer

False

question

The instrumental argument for the stakeholder theory of the firm says that companies perform better if they consider the rights and concerns of multiple groups in society.

answer

True

question

The normative argument for the stakeholder theory of the firm says that the stakeholder view is simply a more realistic description of how companies really work.

answer

False

question

Nonmarket stakeholders are those that engage in economic transactions with the company as it carries out its primary purpose of providing society with goods and services.

answer

False

question

Market stakeholders include nongovernmental organizations and the media.

answer

False

question

Government can be considered both a market and nonmarket stakeholder.

answer

True

question

The interests of different stakeholders often coincide.

answer

True

question

Stakeholders involved with one part of a company often may have little or no involvement with another part of the company.

answer

True

question

Some scholars have suggested that managers pay the most attention to stakeholders possessing the least salience.

answer

False

question

Urgency refers to the extent to which a stakeholder's actions are seen as proper or appropriate by the broader society.

answer

False

question

A stakeholder map is a useful tool, because it enables managers to see quickly how stakeholders feel about an issue and whether salient stakeholders tend to be in favor or opposed.

answer

True

question

The external environment of business is static.

answer

False

question

Which statement is not correct about the business-society interdependence?

answer

Actions by governments rarely significantly affect business.

question

Which of the following examples best illustrates the boundary exchanges a company would encounter according to the general systems theory?

answer

All of the Above: -An industrial company installs new equipment in its plant to comply with environmental regulations. -A software company develops an application for a client. - A purchasing department employee negotiates a price on parts from a supplier.

question

Which of the following is the result of an inseparable relationship between business and society?

answer

Both A & B: - All business decisions have a social impact. - The vitality of business depends on society's actions and attitudes.

question

Which of the following statements is not true about the interactive social system?

answer

The boundary between business and society is clear and distinct.

question

A firm subscribing to the ownership theory of the firm would mainly be concerned with providing value for its:

answer

Shareholders.

question

Corporations that run their operations according to the stakeholder theory of the firm create value by:

answer

All of the Above: - Innovating new products - Increasing their stock price. - Developing their employees' professional skills.

question

Which argument says that stakeholder management realistically depicts how companies really work?

answer

Descriptive argument.

question

The instrumental argument says stakeholder management is:

answer

More effective as a corporate strategy

question

The fiduciary duty of managers benefits a firm's:

answer

All of the Above: - Stockholders. - Customers. - Employees.

question

A number of European countries require public companies to include employee members on their boards of directors, so:

answer

That their interests will be explicitly represented.

question

Stakeholder groups can include:

answer

All of the Above: -Stockholders -The Media - Environmental Activist

question

Which one of the following is considered to be a nonmarket stakeholder of business?

answer

Media

question

Which of the following is not considered to be a nonmarket stakeholder?

answer

Creditors

question

All of the following are external stakeholders of the firm except:

answer

Managers

question

The phenomenon of a person or group holding multiple stakeholder duties is referred to as:

answer

Role Sets

question

A stakeholder analysis:

answer

Involves understanding the nature of stakeholder interests

question

The five types of stakeholders' power recognized by most experts are:

answer

Voting, economic, political, legal, and informational power

question

Which of the following statements is (are) correct about stakeholders' power?

answer

All of the Above: - Different stakeholders have different types and degrees of power. - Stockholders' voting power is limited to the percentage of stock owned by the stockholder. - It uses resources to achieve a desired decision or outcome.

question

Customers can exercise economic stakeholder power by:

answer

Boycotting products if they believe the goods are too expensive.

question

Which of the following is not an example of stakeholders' economic power?

answer

A social group protests a government's decision to raise taxes.

question

When a community group sues a company for health effects caused by the unsafe disposal of toxic chemicals, this is an exercise of a stakeholder's:

answer

Legal Power

question

What stakeholder group(s) can exercise legal power?

answer

All of the Above: -Employees -Customers -Shareholders

question

What kind of power might a local community use to influence a company's decisions?

answer

All of the Above: - Publicizing an issue. - Lobbying government policy makers for regulations. - Challenging whether a business activity should continue to operate.

question

With the explosive growth of technologies that facilitate the sharing of information, this kind of stakeholder power has become increasingly important:

answer

Informational Power

question

Stakeholders have been able to form international coalitions more successfully through use of:

answer

Communications Technology

question

When something stands out from a background, is seen as important, or draws attention it is:

answer

Salient

question

Stakeholders stand out to managers when they exhibit:

answer

Power, legitimacy, and urgency

question

A stakeholder map is a useful tool because:

answer

Both A &B: - It enables mangers to see quickly how stakeholders feel about an issue. - It allows managers to evaluate what outcomes are likely regarding an issue.

question

Departments, or offices, within an organization that reach across the dividing line that separates the company from groups and people in society are:

answer

Boundary-spanning departments.

question

Interactions between business and society occur:

answer

Within a finite natural ecosystem.

question

Interactions between business and society occur:

answer

Within a finite natural ecosystem.

question

Interactions between business and society occur:

answer

Within a finite natural ecosystem.

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