BUS100 – Final Exam

What stakeholder group(s) can exercise legal power?

Customers, Employees, Shareholders

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

Actions by governments rarely affect business.

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

Increasing stock price, developing employee professional skills, innovating new products.

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

The boundary between business and society is clear and distinct.

Stakeholder groups can include:

Environmental activists, shareholders, business support groups

Which one of the following is considered to be a nonmarket stakeholder of business

Nongovernmental organizations.

Customers can exercise economic stakeholder power by:

Boycotting products if they believe the goods are too expensive.

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:

Legal Power

What kind of power might a local community use to influence a company’s decisions?

Publicizing an issue, Challenging whether a business activity should continue to operate, Lobbying government policy makers for regulations.

Which of the following is not an example of stakeholders’ economic power?

A social group protests a government’s decision to raise taxes.

Once an issue has been identified, its implications must be:

Analyzed

Over time, the nature of business’s relationship with its stakeholders often:

Evolves through a series of stages.

Stakeholder engagement is:

The process of ongoing relationship building between a business and its stakeholders.

The issues management process is a

Systematic process companies use when responding to public issues that are of greatest importance to the business.

Contemporary issue management:

Is an interactive, forward thinking process

The components of a typical issues management process include:

Identifying the issue, generating options, taking actions

Proactive companies are:

Much less likely to be blindsided by crises and negative surprises.

The role of special interest groups is an important element in acquiring intelligence from the:

Social environment

Because of the risks and opportunities public issues present, organizations need:

A systematic way of identifying, monitoring, and selecting public issues.

An analysis of the stability or instability of a government is an example of scanning the:

Political Environment

Which of the following examples does not show a company guided by enlightened self-interest?

A company breaking past records by maximizing quarterly profits.

Which of the following is an argument against corporate social responsibility?

Requires skills businesses may lack.

Companies demonstrate global corporate citizenship by:

Finding business opportunities that serve society. Integrating concern for both financial and social performance.

The costs of corporate social responsibility may ultimately be passed on to the:

Consumer through high prices.

Good corporate citizens:

Strive to conduct all business dealings in an ethical manner. Work to protect the environment Make a concerted effort to balance the needs of all stakeholders.

Some companies have created a department of corporate citizenship:

Centralize under common leadership wide-ranging corporate citizenship functions.

Positive reputation can be valued as an intangible corporate:

Asset

When undertaking social initiatives, a company:

May sacrifice short term profits.

Corporate power refers to:

The capability of corporations to influence government, the economy, and society, based on their organizational resources.

When a company puts its commitment to social and environmental responsibility into practice worldwide, not only locally or regionally it is called:

Global Corporate Citizenship.

Which of the following statements is true about the relationship between business and the community?

It is one of mutual interdependence.

What is one reason that firms partner with communities to increase economic development?

To develop workplace skills.

A financial services firm decided to assess the return on its social investment in an educational program in local schools. As part of its assessment, it measured the improvement in learning among students who had participated in the program, compared with the learning of students who had not. Which of the following elements was assessed?

Impacts

Factor conditions are strategic contributions focusing on:

The supply of trained workers, physical infrastructure, and natural resources.

Habitat for Humanity is considered a:

Nongovernmental organization

As communications improve and people around the world are able to witness the horrors of natural disasters, terrorism, and war, international relief efforts by corporations are becoming:

More important

How do companies encourage their employees to volunteer their time?

By offering recognition for service. By publicizing opportunities to serve. By sponsoring specific projects.

According to a survey of community relations managers, what is the most important social issue facing communities today?

Education

Which of the following is a reason for businesses to get involved in the community?

To build social capital. To win local support for business activity. To meet stakeholder demands.

The term civic engagement describes:

The active involvement of businesses and individuals in improving communities.

All of the following values are present in most ethical decisions except:

Be cruel

A just or fair ethical decision occurs when:

Benefits and burdens are distributed equally.

Business managers need a set of ethical guidelines to help them:

Identify and analyze the nature of ethical problem.

Cross-cultural contradictions arise due to:

Differences between home and host countries’ ethical standards.

Under the Sarbanes-Oxley Act, corporations are required to:

Have executives vouch for the accuracy of a firm’s financial reports.

Mature adults typically base their ethical reasoning on broad principles and relationships such as:

Human rights and constitutional guarantees of human dignity. Universal principles of justice.

The main drawback to utilitarian reasoning is that:

It is difficult to accurately measure both costs and benefits.

People’s ethical beliefs come from:

Their religious background, family, and education.

Scholars found that spirituality:

Positively affects employee and organizational performance.

Which of the following examples best illustrate an ethics issue based on cross-cultural contradictions?

Legally marketing a pesticide abroad that has been banned in the U.S.

Dark money refers to:

Undisclosed contributions to tax-exempt organizations.

Expert witness testimony is often collected:

In Congressional hearings.

To influence government policymakers’ actions, an information strategy involves:

Business leaders speaking before government policymakers.

Firms in the chemical industry, which must contend with frequently changing environmental regulations and the risk of dangerous accidents, usually have:

A sophisticated political strategy.

In recent annual Harris polls, which entity did Americans believe had the greatest amount of political power?

Large businesses

Businesses promote an information strategy by inviting government leaders to:

Attend company award ceremonies. Give speeches to employees. Visit local plant facilities.

In a survey of 110 companies in 2014, the most frequent public affairs tactic was related to:

Federal government regulations.

A common tactic in a financial-incentive political strategy is:

Political contributions.

Which of the following is not a constituency-building strategy tool?

Expert witness testimony.

The information strategy tool most used by business is:

Lobbying

Which sales channel is projected to top $450 billion within the next several years?

Online sales

M-Commerce is facilitated primarily by

Mobile or cell phones

The use of robotics in the workplace has increased recently because

Robots are more reliable than people. The cost of robots has decreased. New collaborative machines have been invented.

In 2015, 2 billion people worldwide used social networking sites:

Once per month

Which of the following is not true about the service phase of technology?

It dominated from 1900 to 1960.

In the U.S., the right to free speech:

Must be weighed against the consequences for the community.

Some argue that publishing personal DNA sequencing results is unethical because:

The results could compromise one’s employment situation. The cost of health insurance could rise. Life insurance could be denied.

The phase of technology that focuses on building material goods and manual labor is:

Industrial

Which of the following countries is not one of the top 15 Internet users?

Singapore

The practice of using fake business emails in order to trick users into divulging personal data, such as usernames and passwords, is called:

Phishing

Which of the following statements is not true about shareholders?

They own equal shares of company assets.

Social investors seek to eliminate from their investment portfolios companies that:

Make dangerous products like tobacco or weapons. Pollute the environment. Discriminate against employees.

The "agency problem" arises when:

Managers act in their own interest, rather than in the interest of shareholders.

Which of the following arguments supports the concept of high executive compensation?

High salaries provide an incentive for innovation and risk-taking.

How are directors (members of corporate boards) selected?

Shareholders elect the directors from a list of candidates.

Which of the following is not a legal right of shareholders?

To vote on who will become chief executive officer (CEO).

The mission of the Securities and Exchange Commission (SEC) is to:

Protect shareholders’ rights by making sure that stock markets are run fairly

The board committee that administers and approves salaries and benefits of high-level managers in a company is called the:

Compensation committee.

Investors may receive an economic benefit from the ownership of stock by receiving:

Dividends Capital gains

Which of the following is not an instance of "insider trading"?

A marketing executive briefing stock analysts on the company’s sales performance.

Plants and animals living as a natural unified system are called an ecosystem.

True

Which of the following statements is not true about arable land?

It is a nonrenewable resource.

The amount of land and water a human population needs to produce the resources it consumes and to absorb its wastes given prevailing technology is called:

Ecological footprint

Natural capital refers to the world’s:

Supply of geology, soil, air, water and all living things.

Life-cycle analysis involves:

Collecting information regarding the lifelong environmental impact of a product, from extraction to disposal.

Reasons for the destruction of rain forests include:

Commercial logging. Conversion of forests to plantations. Cattle ranching.

The world’s income is distributed equally among nations.

False

Sustainable development:

Balances economic and environmental considerations.

A thin layer of gas that protects the earth from excessive ultraviolet radiation from the sun is:

Ozone

Which of these factors has accelerated the current ecological crisis?

Rapid Industrialization

Companies that cultivate a vision of sustainability must adopt sophisticated strategic planning techniques to:

Allow their top manager to assess the full range of the firm’s effects on the environment.

When environmentally proactive companies seek out imaginative, innovative new methods for reducing pollution and increasing efficiency, they are adopting which strategy?

Technological innovation.

Which stage of corporate environmental responsibility focuses on the full life cycle of a product?

Product stewardship stage.

Since 2000, most changes to federal regulatory oversight of environmental protection have been due to:

Agency rule making. Executive action.

Which of the following statements is true of air pollution?

Air pollution occurs when more pollutants are emitted into the atmosphere than can be safely absorbed and diluted by natural processes.

Which of these statements is true about ecologically sustainable organizations?

Making and transporting products using minimal energy. Using more natural resources than they replenish.

General Electric’s "Ecomagination" effort to invest in clean technology is an example of:

Clean technology.

Which of the following statements accurately describe the role of chief sustainability officer?

Supervises staff across functional areas. Requires strong interpersonal skills. Typically reports to the CEO.

Which of the following is not a possible cost of environmental regulation?

Corporate restructuring.

Which of the following is not true about the guidelines for sentencing environmental wrongdoers set by the U.S. Sentencing Commission in the event of a violation?

Businesses having no active compliance program would be granted an extension to develop a program.

Representation on the World Bank’s board of directors is based on:

The size of the member nation’s economy.

Assets that a person accumulates and owns at a certain point in time are called:

Wealth

Globalization is accepted worldwide and creates little controversy.

False

The theory of comparative advantage states that:

Productivity rises more quickly when countries produce goods and services for which they have a natural talent.

A firm that has global operations has:

Some or all of their manufacturing or service operations abroad.

An individual who is a supporter of globalization would argue that it helps the developing world by:

Giving entrepreneurs access to foreign investment funds to support economic development. Allowing new ideas and technological innovations to spread quickly. Providing people in developing countries with more jobs.

Microfinance refers to:

Banks lending money to low-income businesses

The three strategies of globalization can be summarized using what three words?:

Sell, make, and buy.

A society where economic power is concentrated in the hands of government officials and political authorities is called:

A central state control system.

The most important agreement which codifies human rights is the:

The Universal Declaration of Human Rights.

When businesses adopt voluntary policies for protecting the privacy of individuals’ information disclosed during electronic transactions, this is an example of:

Industry self-regulation

Online shoppers always run the risk that:

Information they reveal in the course of a sales transaction might be misused.

Which of the following is not a goal of consumer protection laws?

Facilitate consumers getting extended credit when making purchases.

The "right to be heard" assures that consumers’ interests will:

Receive full and sympathetic consideration.

Which of the following describe(s) why the consumer movement exists?

Some product advertising claims have been inflated. Some businesses have violated the public’s privacy.

In some cases, businesses have banded together to agree on how they will treat their customers. This is called:

Voluntary industry codes of conduct.

Consumer groups have generally opposed the idea of product liability reform using which of the following arguments?

Strict liability should be retained.

In the United States, which of the following agencies enforces the laws prohibiting deceptive advertising?

Federal Trade Commission

Warning consumers about the possible side effects of pharmaceutical drugs is an example of consumer protection against:

Hazardous products

Which of the following is (are) core rights of consumers?

The right to safety

A reason for an increase in employee monitoring does not include:

To reduce the employer’s health insurance premiums

Employees in the United States have a legal right to:

Organize and bargain collectively. A safe and healthy workplace.

If someone is entitled to be treated in a certain way, this refers to a(n):

Right

Since the mid-1950s the proportion of American workers represented by unions has:

Decreased

Some studies have shown that the burden of complying with safety regulations falls hardest on:

Small businesses

The Occupational Safety and Health Act gives workers the right to a job:

That is free from recognized hazards that are likely to cause death or serious injury.

The Sarbanes-Oxley Act makes it illegal for employers to:

Retaliate against whistle-blowers who report information that could have an impact on the value of a company’s shares.

The practice of adapting the job to the worker is called:

Ergonomics

Under U.S. laws:

Most private and public workers have the right to hold an election to choose what union they want to represent them, if any.

Which of these actions can businesses take to reduce income inequality?

Commit to paying a living wage to all employees

Why does a diverse and inclusive workforce benefit a firm supporting a global market?

A variety of language skills serves the global customer base well. Understanding differences across markets restricts innovation.

A company can increase diversity and inclusion in the workforce by:

Accommodating family needs outside of work.

Which of the following is an argument against affirmative action?

It is inconsistent with the principles of fairness and equality.

The term "glass walls" refers to:

Fewer opportunities to move sideways into jobs that lead to the top

The growing diversity in the U.S. workforce is due to:

Immigration from other countries. Shifting patterns of work and retirement. Millennials entering the workforce.

Which of the following is not true about occupational segregation?

The large pay gap for Hispanic workers partly reflects their concentration in several high-paying occupations.

Which of these statements is (are) true regarding sexual harassment?

The United States Equal Employment Opportunity Commission is empowered to sue on behalf of victims. Sexual harassment is illegal in the United States. Most sexual harassment incidents target women.

Variation in the important human characteristics that distinguish people from one another is called:

Diversity

Which of the following is (are) true about child care assistance in the workplace?

It helps retain talented employees. It aids in recruiting workers by making the company more attractive to parents. It helps reduce employee absenteeism and tardiness.

According to a Forbes study, what percentage of executives agreed that diversity encourages innovation?

85%