1. The business-government-society (BGS) field is the study of this environment and its importance for
managers.
True False
2. The primary purpose of a business is to make a profit by providing products that satisfy human needs.
True False
3. The structures and processes in a society that make and apply policies and rules are called businesses.
True False
4. An enduring belief about which basic choices in a society are "correct" is called an idea.
True False
5. Institutions are formal patterns of relations that link people together to accomplish a goal.
True False
6. A business uses society's resources to create new wealth.
True False
7. The public generally believes that a business has social responsibilities beyond merely making a
profit.
True False
8. The broad duties of a business that are needed to obtain the support of society are called its social
contract.
True False
9. In the market capitalism model, the "market" acts as a buffer between business and nonmarket forces.
True False
10. The dominance model represents business primarily based on the economic forces that affect it.
True False
11. The dominance model states that corporations act primarily for the good of most of the people in the
society.
True False
12. The dominance model believes that society is undemocratic in its operations.
True False
13. The countervailing forces model states that society is governed primarily by economic forces.
True False
14. The countervailing forces model accepts the absolute primacy of business as in the dominance model.
True False
15. The countervailing forces model is essentially the same as the market capitalism model.
True False
16. The stakeholder model states that the immediate priority of a corporation is to benefit its investors.
True False
17. Governments are secondary stakeholders to corporations.
True False
,18. A concern with the stakeholder theory is that it is not always clear who or what a legitimate stakeholder
is.
True False
19. Theories simplify and organize areas of knowledge by describing patterns or regularities in the subject
matter.
True False
20. In addition to unprecedented wealth creation and new material comforts, capitalism also brings in risks of
economic shocks.
True False
21. A profit-making activity that provides products and services that are intended to satisfy human needs is
called a(n) _______.
A. business
B. NGO
C. government
D. society
22. The structures and processes in a society that authoritatively make and apply policies and rules are called
________.
A. ideas
B. ideologies
C. governments
D. institutions
23. The network of human relations that consists of ideas, institutions, and material things is a(n)
________.
A. ideology
B. society
C. theory
D. government
24. An enduring belief about which fundamental choices in personal and social life are "correct" is a(n)
_______.
A. value
B. institution
C. function
D. process
25. A set of values that create a specific view of the world is a(n) _______
A. institution
B. ideology
C. society
D. economy
26. A formal pattern of relations that link people together in order to accomplish a goal is a(n) ________.
A. society
B. idea
C. institution
D. ideology
27. Which of the following statements is true about ideologies?
A. All ideologies have the power to organize collective activity.
B. Ideologies are structures and processes that authoritatively make and apply policies and rules.
C. Ideologies are essential to coordinate the work of individuals who have no direct relationship with each
other.
D. Secular and sacred ideologies are distinct from one another and rarely overlap.
, 28. The tangible artifacts of a society that shape and are shaped by ideas and institutions are called
_______.
A. material things
B. markets
C. customs
D. services
29. The basic agreement between a business and its society that defines the broad duties of the business that
are needed to retain the support of society is called a(n) _______.
A. social contract
B. ideology
C. institution
D. scheme
30. Which of the following statements about social contracts is true?
A. Businesses are not obligated to fulfill social contracts.
B. It codifies the expectations of business from society and other stakeholders.
C. It is as clear-cut as the economic forces a business faces.
D. It is partly expressed in law, but also resides completely in social values.
31. Which of the following models describes business as responding primarily to economic forces in society?
A. The market capitalism model
B. The stakeholder model
C. The dominance model
D. The countervailing forces model
32. In the _____ model, the _____ acts as a buffer between business and non-market forces.
A. stakeholder; market
B. countervailing forces; government
C. dominance; management
D. market capitalism; market
33. A _____ emerges when people move beyond subsistence production to production for trade, and markets
take on a more central role.
A. centrally planned economy
B. welfare economy
C. market economy
D. socialist economy
34. Which of the following is NOT one of the basic BGS models?
A. The market capitalism model
B. The dominance model
C. The collective business model
D. The stakeholder model
35. Who wrote "The Wealth of Nations"?
A. Karl Marx
B. Émile Durkheim
C. Adam Smith
D. Max Weber
36. _____ is an economic ideology with a bundle of values including private ownership of means of
production, the profit motive, free competition, and limited government restraint in markets.
A. Capitalism
B. Socialism
C. Communism
D. Democracy
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller ExamsExpert. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $29.87. You're not tied to anything after your purchase.
