OBHR 4310 Midterm Flashcards
The relationship between business and society is most accurately described by which
statement?
A) Business is an unbounded entity within the larger bounded entity of society.
B) Society is a distinct bounded entity within the larger bounded entity of business.
C) Business is a distinct bounded entity separate from the bounded entity of society.
D) Business is a distinct bounded entity within the larger bounded entity of society
D) Business is a distinct bounded entity within the larger bounded entity of society
According to general systems theory, boundary exchanges are exemplified by which of
the following?
A) An industrial company installs new equipment in its plant to comply with environmental regulations.
B) A software company develops an application for a client.
C) A purchasing department employee negotiates a price on parts with a supplier.
D) All of these choices are correct
D) All of these choices are correct
A firm subscribing to the shareholder theory of the firm would mainly be concerned with providing long-term value for its
A) investors.
B) customers.
C) board of Directors.
D) community.
A) investors.
Which argument says that stakeholder management realistically depicts how companies really work?
A) descriptive argument
B) instrumental argument
C) normative argument
D) fiduciary argument
A) descriptive argument
The fiduciary duty of managers benefits a firm’s
A) shareholders.
B) customers.
C) employees.
D) All of these choices are correct.
D) All of these choices are correct.
A nonmarket stakeholder of business is exemplified by which of the following?
A) customers
B) nongovernmental organizations
C) creditors
D) shareholders
B) nongovernmental organizations
Stakeholder groups can include
A) shareholders.
B) business support groups.
C) environmental activists.
D) All of these choices are correct.
D) All of these choices are correct.
Particular stakeholders stand out to managers when they exhibit
A) integrity, power, and legitimacy.
B) power, legitimacy, and urgency.
C) integrity, loyalty, and power.
D) legitimacy, loyalty, and urgency.
B) power, legitimacy, and urgency.
When something stands out from a background, is seen as important, or draws attention it is
A) urgent.
B) salient.
C) powerful.
D) legitimate.
B) salient.
What is the primary reason that stakeholder coalitions form?
A) The stakeholder power(s) of different groups coincides.
B) The communication skills of different groups coincide.
C) The stakeholder interest(s) of different groups coincides.
D) The urgency of different stakeholder groups coincides.
C) The stakeholder interest(s) of different groups coincides.
Failure to understand the beliefs and expectations of stakeholders may
A) cause a company’s profits to increase in the short run.
B) cause a company’s profits to decrease in the short run.
C) cause the performance-expectations gap to grow larger.
D) decrease the chance of a corporate buyout.
C) cause the performance-expectations gap to grow larger.
The emergence of a public issue indicates that
A) a gap may be forming between what stakeholders expect and what a firm is doing.
B) technology is forcing ethical decisions and business strategy closer together.
C) consumers are often unaware of how an organization’s actions affect them.
D) All of these choices are correct
A) a gap may be forming between what stakeholders expect and what a firm is doing.
An analysis of the stability or instability of a government is an example of scanning which type of environmental intelligence?
A) social
B) legal
C) geophysical
D) political
D) political
Legal environmental intelligence includes
A) patterns of aggressive corporate growth versus static maintenance.
B) analysis of local, state, national, and international politics.
C) considerations of patents, copyrights, or trademarks.
D) information regarding costs, prices, and international trade.
C) considerations of patents, copyrights, or trademarks.
The role of special interest groups is an important element in acquiring intelligence from
which environment?
A) customer
B) competitor
C) economic
D) social
D) social
The drivers of stakeholder engagement are
A) scanning, assessment, and growth.
B) data, strategy, and organizational development.
C) goals, motivation, and operational capacity.
D) financial, operational, and legal
C) goals, motivation, and operational capacity.
An interactive business–stakeholder relationship is one where
A) companies actively engage with stakeholders through mutual respect and trust.
B) companies engage with all of their stakeholders using only electronic communications.
C) competitive advantage is realized through a constant change of internal representatives.
D) organizations use role-playing to effectively engage with external stakeholders.
A) companies actively engage with stakeholders through mutual respect and trust.
Proactive companies are
A) much less likely to be blindsided by crises and negative surprises.
B) much more likely to be blindsided by crises and negative surprises.
C) more likely to be blindsided by crises and negative surprises.
D) more likely to be forced to defend themselves in a stakeholder lawsuit.
A) much less likely to be blindsided by crises and negative surprises.
Companies that believe they can make decisions unilaterally, without taking into consideration their impact on others, are
A) interactive.
B) proactive.
C) reactive.
D) inactive.
D) inactive.
What role does social media play in stakeholder engagement?
A) provides a forum for the firm to share information with the public via blogs and press
releases
B) offers a mechanism for the public to voice their opinions of the firm and its products
via reviews
C) makes stakeholder communications faster and more effective
D) All of these choices are correct.
D) All of these choices are correct.
People’s ethical principles come from
A) legislative action and judicial decisions.
B) reading the company’s profit and loss statements.
C) their religious background, family, and education.
D) the organization’s code of ethics.
C) their religious background, family, and education.
Ethical relativism is most accurately defined by which statement?
A) Ethical principles transcend all periods of time in history.
B) What’s ethical in one society may be forbidden in another.
C) Ethical beliefs are identical across international boundaries.
D) All religions agree on a common set of universal ethical standards.
B) What’s ethical in one society may be forbidden in another.
A purchasing agent giving an exclusive contract to a supplier, from which she received a valuable gift, is an example of
A) conflict of interest.
B) ethical relativism.
C) moral development.
D) altruistic behavior.
A) conflict of interest.
Business managers need a set of ethical guidelines to help them
A) understand the changing customs throughout the world.
B) justify their own self-serving solutions.
C) identify and analyze the nature of an ethical problem.
D) decide which action is likely to bring the best financial result
C) identify and analyze the nature of an ethical problem.
The main drawback to utilitarian reasoning is that
A) the majority may override the rights of those in the minority.
B) managers using this reasoning process often fail to consider the means taken to reach the end.
C) it is difficult to accurately measure both costs and benefits.
D) cost-benefit calculations can only be provided by accountants.
C) it is difficult to accurately measure both costs and
As a factor of moral intensity, how does the proximity of an issue affect the decision maker?
A) The shorter the physical distance, the lower the intensity.
B) The greater the psychological distance, the higher the intensity.
C) The greater the empathy, the higher the intensity.
D) The shorter the social distance, the lower the intensity.
C) The greater the empathy, the higher the intensity
The reason(s) behind the uncertainty of an ethical decision is(are) that different people and groups
A) may use different sources of information.
B) may rank various rights in different ways.
C) may not share the same meaning of justice.
D) All of these choices are correct
D) All of these choices are correct
Which entity enforces rules to balance the relationship between business and society?
A) government
B) business
C) society
D) consumers
A) government
Businesses’ understanding of government regulations is
A) both a domestic and an international issue.
B) primarily a local domestic issue.
C) primarily an international issue.
D) only an issue for multinational firms.
A) both a domestic and an international issue.
Why should companies be concerned when doing business with questionable governments?
A) Questionable governments have no interest in doing business with foreigners.
B) There is no need for concern because international laws prevent bad dealings.
C) They might indirectly support the illegitimate controlling power.
D) There should be no worries since governments have virtually no economic power over
business
C) They might indirectly support the illegitimate controlling power.
When a government orders companies not to conduct business in another country because of a war, human rights violations, or the lack of a legitimate government; these orders are called
A) government bailouts.
B) political sanctions.
C) economic sanctions.
D) government stop orders.
C) economic sanctions.
A government is being asked to regulate driving distractions is an example of a public
policy
A) input.
B) goal.
C) effect.
D) tool.
A) input.
Public policy tools involve a combination of
A) incentives and political favors.
B) penalties and prison terms.
C) incentives and penalties.
D) political favors and prison terms.
C) incentives and penalties.
By raising and lowering the interest rates at which private banks borrow money from the
government, the Federal Reserve Bank influences
A) the size of the nation’s money supply.
B) the value of the dollar.
C) investor confidence.
D) All of these choices are correct.
D) All of these choices are correct.
Rules that affect the supply, demand, and value of a nation’s currency refer to which type of public policy?
A) regulatory
B) industrial
C) fiscal
D) monetary
D) monetary
Patterns of government collecting and spending funds to stimulate or support the
economy fall under which type of policy?
A) trade
B) welfare
C) fiscal
D) monetary
C) fiscal
Regulation can be argued as justified based on
A) collective market theory.
B) utilitarian and justice grounds.
C) the life cycle of regulation.
D) virtue ethics and tradition.
B) utilitarian and justice grounds.
Since 1960, what was the growth trend in the U.S. regulatory apparatus?
A) significantly declined.
B) increased moderately.
C) significantly increased.
D) remained about the same
C) significantly increased.
One concern of critics of regulation is
A) the exorbitant fees paid by natural monopolies.
B) the high cost to small and manufacturing businesses.
C) the number of people it takes to enforce the rules.
D) their cyclical nature deems them virtually worthless.
B) the high cost to small and manufacturing businesses.
A test to determine if the benefits of regulation are worth its costs is called a
A) cost–benefit analysis.
B) root cause analysis.
C) say-on-pay assessment.
D) monetary policy tool.
A) cost–benefit analysis.
A structural remedy for an antitrust violation includes
A) paying a large fine and compensating damages.
B) breaking up a monopolistic organization.
C) disclosure of company information to rivals.
D) agreeing to change a firm’s conduct.
B) breaking up a monopolistic organization.
Proponents of business as a political participant argue that
A) a pluralistic system invites many participants.
B) it is business’s constitutional right to be involved.
C) business is a vital stakeholder of government.
D) Both “a pluralistic system invites many participants” and “business is a vital stakeholder of government” are correct
D) Both “a pluralistic system invites many participants” and “business is a vital
The reason(s) behind a corporate political strategy might be to
A) focus on limiting a competitor’s progress.
B) further a firm’s economic survival or growth.
C) exercise their voice in government affairs.
D) All of these choices are correct.
D) All of these choices are correct.
