OBHR 4310 Midterm Flashcards by Kristen Wood

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

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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

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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.

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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

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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.

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A nonmarket stakeholder of business is exemplified by which of the following?
A) customers
B) nongovernmental organizations
C) creditors
D) shareholders

B) nongovernmental organizations

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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.

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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.

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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.

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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.

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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.

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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.

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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

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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.

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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

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

Which political action strategy seeks to gain support from other affected organizations to better influence policymakers? A) information strategy B) constituency-building strategy C) financial-incentive strategy D) lobbying strategy

B) constituency-building strategy

What is the risk of a revolving-door hiring policy? A) There is often a skill set mismatch. B) There may be favoritism in decision making. C) These employees come and go quickly. D) The costs can be exorbitant.

B) There may be favoritism in decision making.

What contribution limits are in place for a Super PAC? A) limited contributions from groups B) limited contributions from individuals C) unlimited amounts from groups or individuals D) matching funds from business and individuals

C) unlimited amounts from groups or individuals

What was the effect of the Citizens United decision to allow direct unlimited contributions from businesses to politicians? A) Political spending by corporations increased dramatically. B) Contributions to the Federal Election Commission decreased. C) Aggregate limits on political spending decreased significantly. D) Dark money contributions flattened to the 2010 level.

A) Political spending by corporations increased dramatically.

A company that builds stakeholder coalitions to influence government is using which strategy? A) informational B) financial incentives C) constituency building D) friendly forces

C) constituency building

Supporters of advocacy advertisements believe that they A) identify a company as an interested and active stakeholder. B) can help mold public opinion on a particular policy issue. C) increase union activity and long-term expenses for an organization. D) Both the answers “identify a company as an interested and active stakeholder” and “can help mold public opinion on a particular policy issue” are correct.

D) Both the answers “identify a company as an interested and active stakeholder” and “can help mold public opinion on a particular policy issue” are correct.

When managers become personally involved in developing public policy, the firm is at what level of business political involvement? A) limited B) moderate C) aggressive D) holistic

C) aggressive

1) A public issue exists when there is agreement between the stakeholders' expectations of what a business firm should do and the actual performance of that business firm. ⊚ true ⊚ false

false

2) Understanding and responding to changing societal expectations is a business necessity. ⊚ true ⊚ false

true

3) If all people relied on ethical relativism, there would be no universal ethical standards on which people around the globe could agree. ⊚ true ⊚ false

true

4) Business cannot expect to be profitable while adhering to ethical principles of conduct. ⊚ true ⊚ false

false

5) Ethical ideas are present in all societies, all organizations, and all individual persons. ⊚ true ⊚ false

true

6) In all cases, businesses are unable to exert enough influence over government leaders to keep them in power. ⊚ true ⊚ false

false

7) How a business reacts to specific government policy often depends on if they would be helped or hurt by the rules. ⊚ true ⊚ false

true

8) A national health care policy is an example of an economic policy. ⊚ true ⊚ false

false

9) Economic regulations aim to modify the normal operations of the free market and the forces of supply and demand. ⊚ true ⊚ false

true

10) 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.

11) 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.

12) A market stakeholder of business is exemplified by which of the following? A) business support groups B) creditors C) activist groups D) nongovernmental organizations

B) creditors

13) All of the following are external stakeholders of the firm except A) managers. B) customers. C) shareholders. D) suppliers.

A) managers.

14) The five types of stakeholders' power recognized by most experts are A) voting, economic, political, legal, and informational power. B) social, legal, environmental, economic, and political power. C) social, regulatory, voting, governance, and information power. D) economic, informational, legal, shareholder, and political power.

A) voting, economic, political, legal, and informational power.

15) 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.

16) 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.

17) Public issues are also referred to as A) social issues. B) sociopolitical issues. C) political issues. D) both social issues and sociopolitical issues.

D) both social issues and sociopolitical issues.

18) 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

19) Scanning the competitor environment includes A) identifying the number of competing organizations. B) determining how many rivals may become allies. C) analyzing the growth rates of competing firms. D) All of these choices are correct.

D) All of these choices are correct.

20) 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

21) An issue's public profile indicates to managers A) how significant an issue is for the organization, but it does not tell them what to do. B) both how significant an issue is for the organization and exactly what to do. C) exactly what to do without indicators of how significant an issue is for the organization. D) Each of the other choices are correct, depending on the organization type.

A) how significant an issue is for the organization, but it does not tell them what to do.

22) When working well, the issue management process A) is static and never pulls in additional information that would disturb the balance. B) automatically operates with little to no company involvement. C) minimizes dialogue with the stakeholders and focuses on short-term survival. D) continuously cycles back to the beginning and repeats.

D) continuously cycles back to the beginning and repeats.

23) Stakeholder engagement is best described as a A) program. B) relationship. C) process. D) systems model.

B) relationship.

24) 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.

25) A conception of right and wrong is A) impossible to know. B) the definition of ethics. C) determined by power. D) based on stakeholder dialogue.

B) the definition of ethics.

26) What normative reason is there for business to be ethical, according to Figure 5.1? A) to enhance business performance B) to promote personal morality C) to meet the demands of stakeholders D) to comply with legal requirements

B) to promote personal morality

27) Businesses are expected to be ethical in their relationships with A) stockholders. B) customers. C) competitors. D) All of these choices are correct.

D) All of these choices are correct.

28) 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.

29) Cross-cultural contradictions arise due to A) the emergence of a developing country’s economic power. B) religious differences practiced by business executives. C) differences between home and host countries’ ethical standards. D) All of these choices are correct.

C) differences between home and host countries’ ethical standards.

30) 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.

31) At the core of rights reasoning is the belief that A) the company's right to a profit must be protected. B) respecting others is the essence of human rights. C) the right to join a union is no longer universally accepted. D) economic and political powers determine who is right.

B) respecting others is the essence of human rights.

32) One factor in determining the moral intensity of an ethical issue is how quickly the consequences take effect, a factor that is known as A) temporal immediacy. B) social consensus. C) proximity. D) probability.

A) temporal immediacy.

33) Which type of ethical issue did 3M face with regard to price gouging accusations, according to the case “3M and N95 Respirators for Americans”? A) cross-cultural contradictions B) competitive pressures on profits C) conflicts of interest D) personal gain and selfishness

B) competitive pressures on profits

34) 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.

35) Which entity enforces rules to balance the relationship between business and society? A) government B) business C) society D) consumers

A) government

36) Cooperation between business and government often occurs when A) regulations set standards that apply to all firms. B) rules build consumer confidence in product safety. C) barriers to entry help maintain a competitive advantage. D) All of these choices are correct.

D) All of these choices are correct.

37) 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.

38) Past decisions of the courts, the original basis for the U.S. legal system, are called A) civil society. B) amendments. C) civil rights. D) common law.

D) common law.

39) When the marketplace does not adjust for the full costs of a firm’s behavior, this is called A) negative externalities. B) deregulation. C) market failure. D) reregulation.

C) market failure.

40) Economic regulations are illustrated by which action? A) allowing market forces to set prices B) preventing anticompetitive business practices C) providing protection of pension benefits. D) ensuring safe working conditions.

B) preventing anticompetitive business practices

41) 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

42) 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 stakeholder of government” are correct.

43) Public policies and government regulations are shaped by A) business. B) special interest groups. C) government. D) All of these choices are correct.

D) All of these choices are correct.

44) Which political action strategy seeks to gain support from other affected organizations to better influence policymakers? A) information strategy B) constituency-building strategy C) financial-incentive strategy D) lobbying strategy

B) constituency-building strategy

45) What is the risk of a revolving-door hiring policy? A) There is often a skill set mismatch. B) There may be favoritism in decision making. C) These employees come and go quickly. D) The costs can be exorbitant.

B) There may be favoritism in decision making.

46) The job of a business lobbyist is to represent A) the company while influencing business policy. B) the public by influencing business policy. C) the company by influencing government policy. D) the government while influencing business policy.

C) the company by influencing government policy.

47) What is one disadvantage to business for making political action committee contributions? A) Direct donations to politicians could harm a firm’s reputation. B) The contribution amount is capped at fairly low levels. C) Most of the money goes specifically to partisan candidates. D) In spite of the financial gain, most politicians never return the favor.

B) The contribution amount is capped at fairly low levels.

48) Expert witness testimony is often collected through A) governmental websites. B) professional business forums. C) public congressional hearings. D) traditional and social media sites.

C) public congressional hearings.

49) Why do businesses use direct communications, like plant visits, with political leaders? A) to intimidate workers into following all rules and regulations B) to dehumanize the relationship and create objectivity C) to improve the officials’ understanding of the business D) to curry favor so the organization can sidestep regulations

C) to improve the officials’ understanding of the business

50) Which of the following is not a constituency-building strategy tool? A) direct communication B) advocacy advertising C) public relations D) legal challenges

What is Dr Barden's wife's name?

Leslie

What is his dog's name?

Chloe

Where is Dr Barden from?

Bronx

Where is Dr McNulty from?

Dallas

What is his favorite food?

Lasagna

Who is the Dean of JSOM

Dr. Hasan Pirkul

Who is the president of UTD?

Dr Richard Benson