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MGMT 3211 Chapter 9

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ad hoc coalitions
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the bringing together of diverse groups to organize for or against legislation or regulation
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advocacy advertising
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a political tool used by companies to promote their viewpoint through the media
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bundling
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the collection of political contributions made by an organization’s stakeholders to increase the organization’s ability to influence a political agent
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corporate political strategy
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those activities taken by an organization to acquire, develop, and use power to achieve a political advantage
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economic leverage
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a political tool where a business uses its economic power to threaten to relocate its operations unless a desired political action is taken
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527 organizations
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groups organized under section 527 of the IRS tax code for the purpose of donating money to candidates for public office and influencing elections
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leaderships (PAC)
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organization that collects political contributions on behalf of a politician and uses them to support others’ campaigns, showing the politician’s leadership within the political party
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lobbying
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the act of trying to directly shape of influence a government official’s understanding and position on a public policy issue
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political action committees (PAC)
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an independently incorporated organization that can solicit contributions and then channels those funds to candidates seeking political office
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public affairs deparments
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manages the firm’s interactions with governments at all levels and to promote the firm’s interests in the political process
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revolving door
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the circulation of individuals between business and government positions
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soft money
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unlimited political contributions made to a political party by individuals or organizations, but not by business or labor unions, to support party-building activities
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super PACs
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an organization that raises and spends money focusing on political issues but is not directly affiliated with any political campaign; also called an independent expenditure-only committee
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The Business Roundtable
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founded in 1972, an organization of chief executive officers from leading corporations involved in various public issues and legislations
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trade associations
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a coalition of companies in the same or related industries seeking to coordinate their economic or political power to further their agenda
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According to the textbook, the heads of most public affairs departments are senior vice president or vice president positions.
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True
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According to the textbook, until 2010, corporations were permitted by law to make direct contributions to political candidates for national and most state offices.
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False
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Businesses must wait for a public issue to arise before forming a political strategy.
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False
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Expert witnesses provide information to legislators for businesses or business groups.
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True
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In many countries, the political environment has a select few participants.
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False
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Labor unions have been an active participant in United States politics for decades.
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True
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Loaning office personnel is a financial-incentive political strategy tool.
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True
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Most scholars agree that business must participate in politics.
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True
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Sometimes businesspeople leave the private sector to take employment in government before returning to the corporate world.
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True
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The emergence of public issues often encourages companies to monitor public concerns, respond to government proposals, and participate in the political process.
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True
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The most effective type of lobbying involves targeting only federal officials.
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False
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The solar power industry has yet to become an active participant in the U.S. political environment.
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False
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Under U.S. law, lobbying activities must be disclosed publicly.
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True
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Various stakeholder groups often use far different tactics than businesses to influence government officials, elections, and regulation.
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False
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When a manager directly employs a lobbyist to represent the company’s political strategy in Washington this is called aggressive organizational involvement in politics.
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False