Question 1

Which of the following contributed to the more relaxed incorporation procedures of modern times?

Accepted Answer

A)  The idea that incorporation is a by-product of the people's right to associate,not a gift from the state.
B)  The move from mercantilist thinking to a belief in Benjamin Franklin's invisible hand.
C)  The idea that incorporation is a gift from the state.
D)  The thought that laissez-faire is a losing proposition.

Question 2

Momentum for the corporate organization of business really gained momentum after which war?

Accepted Answer

A)  Revolutionary War
B)  French and Indian War
C)  Civil War
D)  World War I

Question 3

Milton Friedman's perspective is that the only social responsibility of a business is to

Accepted Answer

A)  provide social benefit for the messes.
B)  give jobs to the hard workers.
C)  pay taxes to keep the government operating.
D)  make money for its owners.

Question 4

Milton Snoeyenbos argues that

Accepted Answer

A)  settled economic life requires purely selfish behavior.
B)  with ethical codes,there's no need for taxes,laws,or regulations as a way of controlling corporate behavior.
C)  Corporate moral codes can make it more reasonable to expect employees to behave ethically.
D)  to be viable,ethical codes need not be widely accepted or part of corporate culture.

Question 5

Externalities are the unintended negative (or in some cases positive) consequences that an economic transaction between two parties can have on some third party.

Accepted Answer

A) True 
 B)False

Question 6

Milton Friedman argues that business has a responsibility to provide employment,refrain from polluting,and eliminate discrimination,even when it's not profitable to do so.

Accepted Answer

A) True 
 B)False

Question 7

According to Kenneth Arrow,trust and confidence are highly overrated in business.

Accepted Answer

A) True 
 B)False

Question 8

Most business observers agree with Berle and Means that,because stock ownership in large corporations is so dispersed,actual control of the corporation has passed to management.

Accepted Answer

A) True 
 B)False

Question 9

The statement that accurately describes corporations is

Accepted Answer

A)  corporate shareholders have limited liability for their debts.
B)  corporations must be "publicly held" and thus traded on the stock market.
C)  corporations are always for-profit.
D)  corporate shareholders are immediately entitled to any profits.

Question 10

The idea that corporations are moral agents

Accepted Answer

A)  is accepted by many people and companies without hesitation.
B)  has not been accepted by the courts.
C)  has not been accepted by any major corporation.
D)  is supported by the fiduciary relationship between management and shareholders.

Question 11

Those with a broader view concerning business obligations believe that with power comes

Accepted Answer

A)  more power.
B)  more money.
C)  too many limits.
D)  social responsibility.

Question 12

Is Levi Strauss really hurting the people of Costa Rica by opening the operation there? List the pros and cons.

Accepted Answer

The question of whether Levi Strauss is ...

Question 13

The "rules of the game" for corporate work are intended to

Accepted Answer

A)  let the games begin.
B)  promote open and free competition.
C)  destroy the competition.
D)  make business fun.

Question 14

According to Milton Friedman,business has no social responsibilities other than to maximize profits so long as it follows the rules of the game.

Accepted Answer

A) True 
 B)False

Question 15

Some argue for the narrow view of corporate social responsibility on the ground that managers have a fiduciary responsibility to maximize the profits of their shareholders.As discussed in Chapter 5,one problem with this argument is that

Accepted Answer

A)  companies do not usually have a clear chain of command.
B)  promises don't override all our other obligations.
C)  managers don't always know how to maximize profits.
D)  stockholders don't expect company managers to make money for them.

Question 16

Briefly explain Milton Friedman's view of social responsibility.

Accepted Answer

Milton Friedman's view of social respons...

Question 17

According to proponents of broadening corporate responsibility,corporations should welcome the outside opinions of society as a whole,local communities,customers,suppliers,employees,managers,and stockholders.

Accepted Answer

A) True 
 B)False

Question 18

Describe the ethical challenges that Yahoo faces in the China market.

Accepted Answer

Yahoo faces several ethical challenges i...

Question 19

Corporate internal decision (CID) structures amount to established procedures for accomplishing specific goals.

Accepted Answer

A) True 
 B)False

Question 20

"Limited liability" means that members of a corporation are financially liable for corporate debts only up to the extent of their investments.

Accepted Answer

A) True 
 B)False

Exam 5: Corporations

Which of the following contributed to the more relaxed incorporation procedures of modern times?

Correct AnswerverifiedShow Answer

Milton Friedman's perspective is that the only social responsibility of a business is to

Correct AnswerverifiedShow Answer

"Limited liability" means that members of a corporation are financially liable for corporate debts only up to the extent of their investments.

Correct AnswerverifiedShow Answer

Corporate internal decision (CID) structures amount to established procedures for accomplishing specific goals.

Correct AnswerverifiedShow Answer

Momentum for the corporate organization of business really gained momentum after which war?

Correct AnswerverifiedShow Answer

Externalities are the unintended negative (or in some cases positive) consequences that an economic transaction between two parties can have on some third party.

Correct AnswerverifiedShow Answer

The idea that corporations are moral agents

Correct AnswerverifiedShow Answer

Milton Snoeyenbos argues that

Correct AnswerverifiedShow Answer

According to proponents of broadening corporate responsibility,corporations should welcome the outside opinions of society as a whole,local communities,customers,suppliers,employees,managers,and stockholders.

Correct AnswerverifiedShow Answer

Briefly explain Milton Friedman's view of social responsibility.

Correct AnswerAnswered by ExamLex AIMilton Friedman's view of social respons...View AnswerShow Answer

The "rules of the game" for corporate work are intended to

Correct AnswerverifiedShow Answer

Milton Friedman argues that business has a responsibility to provide employment,refrain from polluting,and eliminate discrimination,even when it's not profitable to do so.

Correct AnswerverifiedShow Answer

The statement that accurately describes corporations is

Correct AnswerverifiedShow Answer

Some argue for the narrow view of corporate social responsibility on the ground that managers have a fiduciary responsibility to maximize the profits of their shareholders.As discussed in Chapter 5,one problem with this argument is that

Correct AnswerverifiedShow Answer

Is Levi Strauss really hurting the people of Costa Rica by opening the operation there? List the pros and cons.

Correct AnswerAnswered by ExamLex AIThe question of whether Levi Strauss is ...View AnswerShow Answer

According to Milton Friedman,business has no social responsibilities other than to maximize profits so long as it follows the rules of the game.

Correct AnswerverifiedShow Answer

According to Kenneth Arrow,trust and confidence are highly overrated in business.

Correct AnswerverifiedShow Answer

Describe the ethical challenges that Yahoo faces in the China market.

Correct AnswerAnswered by ExamLex AIYahoo faces several ethical challenges i...View AnswerShow Answer

Those with a broader view concerning business obligations believe that with power comes

Correct AnswerverifiedShow Answer

Most business observers agree with Berle and Means that,because stock ownership in large corporations is so dispersed,actual control of the corporation has passed to management.

Correct AnswerverifiedShow Answer

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Milton Friedman's view of social respons...
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The question of whether Levi Strauss is ...
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Yahoo faces several ethical challenges i...
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