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BUS 214 > CH 2 > Flashcards

CH 2 Flashcards

1
Q

A firm that recognizes other stakeholders beyond investors, employees, and suppliers, and explicitly acknowledges that dialogue exists between a firm’s internal and external environments, has adopted which of the following?
a. A stakeholder model of socially responsible corporate governance
b. A stakeholder bias
c. A code of ethics
d. A stakeholder interaction model
e. A corporate interface

A

D

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2
Q

Why is it important for businesses to recognize secondary stakeholder groups?
a. They are absolutely necessary for the firm’s survival.
b. They include the employees necessary for the firm’s success.
c. They always have more power than primary stakeholders.
d. They provide vital resources that companies need.
e. They have legitimacy and the power to influence outcomes.

A

E

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3
Q

What do suppliers offer that is critical to a firm’s long-term success?
a. The promise of customer loyalty
b. Material resources and/or intangible knowledge
c. Infrastructure
d. Revenue
e. Leadership skills

A

B

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4
Q

Public health and safety and the support of local organizations are issues that are most relevant to which stakeholder group?
a. Investors
b. Community
c. Suppliers
d. Customers
e. Employees

A

B

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5
Q

The extent to which a firm meets the economic, legal, ethical, and philanthropic responsibilities placed on it by various stakeholders is referred to as its _______.
a. reputation
b. corporate citizenship
c. corporate ethical audit
d. ethical citizenship
e. fiduciary duties

A

B

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6
Q

In corporate governance, the process of auditing and improving organizational decisions and actions is known as _______.
a. profit
b. loyalty
c. accountability
d. control
e. diligence

A

D

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7
Q

Which model of corporate governance is founded in classic economic precepts?
a. Economic
b. Shareholder
c. Stakeholder
d. Board
e. ISO

A

B

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8
Q

A board of directors’ fiduciary duty to a company refers to an assumed position of trust and confidence that entails certain responsibilities.
a. True
b. False

A

True

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9
Q

Ethics and social responsibility can be used interchangeably.
a. True
b. False

A

False

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10
Q

A stakeholder orientation is not complete unless it includes which of the following?
a. Clear accounting procedures
b. Major financing activities
c. A marketing strategy
d. Feedback from special-interest groups
e. Activities that address stakeholder issues

A

E

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11
Q

Accountability, oversight, and control all fall under the definition and implementation of corporate _______.
a. profit
b. loyalty
c. care
d. governance
e. diligence

A

D

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12
Q

The idea that because people live in a community, social rules should benefit the community is known as _______.
a. the stakeholder interaction model
b. consumer protection
c. the common good
d. sustainability
e. corporate governance

A

C

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13
Q

The idea of the invisible hand, which is a fundamental concept in free market capitalism, was developed by which of the following individuals?
a. Adam Smith
b. John Maynard Keynes
c. Janet Yellen
d. Noel Biderman
e. Milton Friedman

A

A

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14
Q

The idea that the basic mission of business is to produce goods and services at a profit, thus maximizing its contribution to society, is associated with which of following individuals?
a. Adam Smith
b. Archie Carroll
c. Jack Ma
d. Karl Marx
e. Milton Friedman

A

E

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15
Q

Some economists believe that if companies address economic and legal issues, they are satisfying the demands of society, and that trying to anticipate and meet additional needs would be almost impossible. Which economist’s theory does this belief most closely follow?
a. John Maynard Keynes
b. Janet Yellen
c. Adam Smith
d. Elinor Ostrom
e. Milton Friedman

A
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16
Q

When unethical acts are discovered in a firm, which of the following is true in most instances?
a. They are caused by unwilling participants.
b. The cause is due to external stakeholders.
c. The perpetrators are caught and prosecuted.
d. Their acceptance and perpetuation were facilitated by cooperation or complicity.
e. The cause of the unethical conduct is a corrupt board of directors.

A

D

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17
Q
  1. Those who have a claim in some aspect of a firm’s products, operations, markets, industry, and outcomes are known as _______.
    a. shareholders
    b. stockholders
    c. stakeholders
    d. claimholders
    e. special-interest groups
A

c

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18
Q
  1. Stakeholders’ power over businesses stems from their _______.
    a. ability to withhold organizational resources
    b. ability to generate profits
    c. media impact
    d. political influence
    e. stock ownership
A

a

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19
Q
  1. Which of the following groups is defined as one that does not typically engage in transactions with a company and therefore is not essential for its survival?
    a. Employees
    b. Secondary stakeholders
    c. Primary stakeholders
    d. Investors
    e. Customers
A

b

20
Q
  1. The degree to which a firm understands and addresses stakeholder demands refers to _______.
    a. a stakeholder orientation
    b. a shareholder orientation
    c. the stakeholder interaction model
    d. a two-way street
    e. a continuum
A

a

21
Q
  1. Which of the following industries tends to generate a high level of trust from consumers and stakeholders?
    a. Insurance
    b. Technology
    c. Banks
    d. Mortgage lenders
    e. Energy
A

b

22
Q
  1. Why is it important for businesses to recognize secondary stakeholder groups?
    a. They are absolutely necessary for the firm’s survival.
    b. They include the employees necessary for the firm’s success.
    c. They always have more power than primary stakeholders.
    d. They provide vital resources that companies need.
    e.They have legitimacy and the power to influence outcomes.
A

e

23
Q
  1. A stakeholder group that is absolutely necessary for a firm’s survival is defined as a _______.
    a. direct stakeholder
    b. tertiary stakeholder
    c. secondary stakeholder
    d. special-interest stakeholder
    e. primary stakeholder
A

e

24
Q
  1. When unethical acts are discovered in a firm, which of the following is true in most instances?
    a. They are caused by unwilling participants.
    b. The cause is due to external stakeholders.
    c. The perpetrators are caught and prosecuted.
    d. Their acceptance and perpetuation were facilitated by cooperation or complicity.
    e. The cause of the unethical conduct is a corrupt board of directors.
A

d

25
Q
  1. Which of the following statements accurately describes the normative approach?
    a. It focuses on the firm’s behavior and usually addresses how decisions and strategies are made for stakeholder
    relationships.
    b. It describes what happens if firms behave in a particular way.
    c. It is the degree to which a firm understands and addresses stakeholder demands.
    d. It describes reciprocal relationships between the firm and a host of stakeholders.
    e. It identifies ethical guidelines that dictate how firms should treat stakeholders.
A

e

26
Q
  1. A stakeholder orientation can be viewed as a(n) _______.
    a. necessity for business success
    b. continuum
    c. polarizing concept
    d. good marketing ploy
    e. expensive proposition
A

b

27
Q
  1. What do suppliers offer that is critical to a firm’s long-term success? a. The promise of customer loyalty
    b. Material resources and/or intangible knowledge
    c. Infrastructure
    d. Revenue
    e. Leadership skillsy
A

b

28
Q
  1. The four levels of social responsibility include which of the following?
    a. Economic, social, legal, and voluntary
    b. Economic, legal, environmental, and ethical
    c. Financial, legal, environmental, and philanthropic
    d. Economic, financial, legal, and ethical
    e. Economic, legal, ethical, and philanthropic
A

e

29
Q
  1. The first of three activities associated with the stakeholder orientation is _______.
    a. an organization-wide generation of data
    b. an organization’s responsiveness to intelligence c. a set of consumer attributes being identified
    d. an organizational strategy of target markets
    e. a human relations department’s set of priorities
A

a

30
Q
  1. Minimizing the use of energy and reducing emissions and waste are issues of importance to which of the following stakeholder categories?
    a. Environmental groups
    b. Suppliers
    c. Employees
    d. Industry leaders
    e. Investors
A

a

31
Q
  1. The idea that the basic mission of business is to produce goods and services at a profit, thus maximizing its contribution to society, is associated with which of following individuals?
    a. Adam Smith
    b. Archie Carroll
    c. Jack Ma
    d. Karl Marx
    e. Milton Friedman
A

e

32
Q
  1. Some economists believe that if companies address economic and legal issues, they are satisfying the demands of society, and that trying to anticipate and meet additional needs would be almost impossible. Which economist’s theory does this belief most closely follow?
    a. John Maynard Keynes
    b. Janet Yellen
    c. Adam Smith
    d. Elinor Ostrom
    e. Milton Friedman
A

e

33
Q
  1. Which of the following is a major ethical concern among corporate boards of directors?
    a. Compensation
    b. The non-traditional directorship approach
    c. Dividend reporting
    d. Secondary stakeholders
    e. Debt swaps
A

a

34
Q
  1. Which of the following describes the purpose of a stakeholder orientation?
    a. To emphasize shareholders and provide them with a return on their investment
    b. To maximize positive outcomes that meet stakeholder need
    c. To diminish the role of stakeholders such as the government and employees
    d. To determine which stakeholders to address and which to ignore
    e. To allow stakeholders to determine the limits of executive compensation
A

b

35
Q
  1. The first step in implementing the stakeholder perspective is _______.
    a. identifying stakeholder groups
    b. assessing the corporate culture
    c. identifying and gaining stakeholder feedback
    d. identifying stakeholder issues
    e. assessing organizational commitment to social responsibility groups
A

b

36
Q
  1. Which of the following would typically be considered a secondary stakeholder group?
    a. Suppliers
    b. Customers
    c. Special-interest groups
    d. Government regulatory agencies
    e. Community
A

c

37
Q
  1. Which of the following would typically be considered a primary stakeholder group?
    a. Competitors
    b. Community
    c. Trade associations
    d. Special interest groups
    e. The mass media
A

b

38
Q
  1. What do critics of high compensation for boards of directors point to as being problematic?
    a. The more directors are paid, the more power they have over the organization.
    b. High compensation could cause a conflict of interest.
    c. High board member pay leads to poorly compensated employees.
    d. High pay will render the board less complacent.
    e. Board of director compensation is negatively related to corporate growth.
A

b

39
Q
  1. Board members being linked to more than one company is defined as which of the following?
    a. The stakeholder concept
    b. The stakeholder model of corporate governance
    c. An interlocking directorate
    d. A conflict of interest
    e. A multiple directorate
A

c

40
Q
  1. The last step in implementing a stakeholder perspective in an organization is _______.
    a. identifying resources and deterImining urgency
    b. assessing the corporate culture
    c. identifying stakeholder issues
    d. gaining stakeholder feedback
    e. assessing organizational commitment to social responsibility
A

d

41
Q
  1. A broader view of social responsibility is one that _______.
    a. views customers as the most important stakeholder
    b. takes into account a shareholder orientation
    c. prioritizes all stakeholders the same way
    d. considers the long-term welfare of society r
    e. emphasizes adherence to law as the highest priority
A

d

42
Q
  1. The final step in implementing a stakeholder perspective is identifying stakeholders.
    a. True
    b. False
A

b

43
Q
  1. Evidence suggests that caring about the well-being of stakeholders leads to increased profits.
    a. True
    b. False
A

a

44
Q
  1. Government regulatory agencries are considered a secondary stakeholder group.
    a. True
    b. False
A

b

45
Q
  1. The obligation of individuals to make decisions that are in the best interests of the corporation and its stakeholders is
    known as a _______.
    a. duty of loyalty
    b. duty of oversight
    c. duty to audit
    d. duty of control
    e. duty of cooperation
A

a

46
Q
  1. Fiduciaries are persons placed in positions of trust that act on behalf of the best interests of the organization. Both directors and officers of corporations are fiduciaries for their shareholders, tasked with making informed and prudent decisions, referred to as a _______.
    a. duty of oversight and loyalty
    b. duty of care or a duty of diligence
    c. duty of control and audit
    d. duty of confidence and leadership
    e. duty of analysis and insight
A

b

BUS 214 (14 decks)

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