Question 1

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

Accepted Answer

A)   Innovating new products.
B)   Increasing their stock price.
C)   Developing their employees' professional skills.
D)   All of the above.

Question 2

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

Accepted Answer

A) True 
 B)False

Question 3

Describe how general systems theory can be applied to a business.

Accepted Answer

General systems theory can be applied to...

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

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

Accepted Answer

A)   Business is a part of society.
B)   Business is separated from the rest of society by clear boundaries.
C)   Business activities impact other activities in society.
D)   Actions by governments rarely significantly affect business.

Question 6

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

Accepted Answer

A)   Business and society need, as well as influence, each other.
B)   The boundary between business and society is clear and distinct.
C)   Business is a part of society, and society penetrates far and often into the business.
D)   Business and society are both separate and connected.

Question 7

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.

Accepted Answer

A) True 
 B)False  False

Question 8

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

Accepted Answer

A)   Urgent.
B)   Salient.
C)   Powerful.
D)   Legitimate.

Question 9

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:

Accepted Answer

A)   Legal power.
B)   Voting power.
C)   Economic power.
D)   Political power.

Question 10

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.

Accepted Answer

A) True 
 B)False

Question 11

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

Accepted Answer

A)   Economic power.
B)   Political power.
C)   Informational power.
D)   Legal power.

Question 12

Stakeholders stand out to managers when they exhibit:

Accepted Answer

A)   Integrity, power, and legitimacy.
B)   Power, legitimacy, and urgency.
C)   Integrity, loyalty, and power.
D)   Legitimacy, loyalty, and urgency. B

Question 13

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.

Accepted Answer

A) True 
 B)False  True

Question 14

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

Accepted Answer

A)   Role sets.
B)   Primary Stakeholder(s) .
C)   Ownership Theory.
D)   None of the above.

Question 15

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

Accepted Answer

A)   All business decisions have a social impact.
B)   The vitality of business depends on society's actions and attitudes.
C)   The survival of business is independent of society.
D)   Both A and B, but not

Question 16

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

Accepted Answer

A)   Shareholders.
B)   Customers.
C)   Board of Directors.
D)   Community.

Question 17

Interactions between business and society occur:

Accepted Answer

A)   Within a finite natural ecosystem.
B)   Only during an environmental crisis.
C)   When business employees and the community are of similar cultural backgrounds.
D)   When legislation is passed requiring interaction.

Question 18

Market stakeholders include nongovernmental organizations and the media.

Accepted Answer

A) True 
 B)False

Question 19

Stakeholder groups can include:

Accepted Answer

A)   Stockholders.
B)   The media.
C)   Environmental activists.
D)   All of the above.

Question 20

Compare and contrast the relationships a firm may have with market and non-market stakeholders.

Accepted Answer

A firm may have different types of relat...

Exam 1: The Corporation and Its Stakeholders

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Describe how general systems theory can be applied to a business.

Correct AnswerAnswered by ExamLex AIGeneral systems theory can be applied to...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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.

Correct AnswerverifiedFalse

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

Correct AnswerverifiedShow Answer

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:

Correct AnswerverifiedShow Answer

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.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Stakeholders stand out to managers when they exhibit:

Correct AnswerverifiedB

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.

Correct AnswerverifiedTrue

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Interactions between business and society occur:

Correct AnswerverifiedShow Answer

Market stakeholders include nongovernmental organizations and the media.

Correct AnswerverifiedShow Answer

Stakeholder groups can include:

Correct AnswerverifiedShow Answer

Compare and contrast the relationships a firm may have with market and non-market stakeholders.

Correct AnswerAnswered by ExamLex AIA firm may have different types of relat...View AnswerShow Answer

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False

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B

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True

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A firm may have different types of relat...
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