TEST BANK FOR
9 9
Business9and9Society9Stakeholders9Ethics9Public9Policy917th9Edition9By9Anne9Lawre
nce
Chapter91-
199Answers9are9at9the9end9of9Each9chapter9Chapter91
Student9name:
TRUE/FALSE9-9Write9'T'9if9the9statement9is9true9and9'F'9if9the9statement9is9false.
1) A9business9is9any9organization9that9is9engaged9in9making9a9product9or9providing9a9service9for
9a9profit.
⊚9 true
⊚9 false
2) The9term9stakeholder9refers9exclusively9to9the9founders9of9a9business9organization.
⊚9 true
⊚9 false
3) Businesses9and9society9are9independent9of9each9other.
⊚9 true
⊚9 false
4) The9stakeholder9theory9of9the9firm9argues9that9a9firm’s9sole9purpose9is9to9create9long-
term9value9for9its9shareholders.
⊚9 true
⊚9 false
5) The9instrumental9argument9for9the9stakeholder9theory9of9the9firm9says9that9companies
9perform9better9if9they9consider9the9rights9and9concerns9of9multiple9groups9in9society.
⊚9 true
⊚9 false
6) The9normative9argument9for9the9stakeholder9theory9of9the9firm9says9that9the9stakeholder9view
9is9simply9a9more9realistic9description9of9how9companies9really9work.
⊚9 true
⊚9 false
,7) Nonmarket9stakeholders9are9those9that9engage9in9economic9transactions9with9the9company9as
9it9carries9out9its9primary9purpose9of9providing9society9with9goods9and9services.
⊚9 true
⊚9 false
8) Market9stakeholders9include9nongovernmental9organizations9and9business9support9groups.
⊚9 true
⊚9 false
9) Government9can9be9considered9both9a9market9and9a9nonmarket9stakeholder.
⊚9 true
⊚9 false
10) The9interests9of9different9stakeholders9often9coincide.
⊚9 true
⊚9 false
11) The9first9step9of9stakeholder9analysis9is9to9identify9relevant9stakeholders.
⊚9 true
⊚9 false
12) Some9scholars9have9suggested9that9managers9pay9the9most9attention9to9stakeholders
9possessing9the9least9salience.
⊚9 true
⊚9 false
13) The9organization9of9a9corporation’s9boundary-spanning9functions9is9complex.
⊚9 true
⊚9 false
14) Businesses9are9increasingly9trying9to9meet9their9commitments9to9multiple9stakeholders.
⊚9 true
⊚9 false
15) The9external9environment9of9business9is9static.
⊚9 true
⊚9 false
,MULTIPLE9CHOICE9-
9Choose9the9one9alternative9that9best9completes9the9statement9or9answers9the9question.
16) The9relationship9between9business9and9society9is9most9accurately9described9by9which
9statement?
A) Business9is9an9unbounded9entity9within9the9larger9bounded9entity9of9society.
B) Society9is9a9distinct9bounded9entity9within9the9larger9bounded9entity9of9business.
C) Business9is9a9distinct9bounded9entity9separate9from9the9bounded9entity9of9society.
D) Business9is9a9distinct9bounded9entity9within9the9larger9bounded9entity9of9society.
17) According9to9general9systems9theory,9boundary9exchanges9are9exemplified9by9which9of9the
9following?
A) An9industrial9company9installs9new9equipment9in9its9plant9to9comply9with
9environmental9regulations.
B) A9software9company9develops9an9application9for9a9client.
C) A9purchasing9department9employee9negotiates9a9price9on9parts9with9a9supplier.
D) All9of9these9choices9are9correct.
18) The9inseparable9relationship9between9business9and9society9results9in9which9of9the9following?
A) All9business9decisions9have9a9social9impact.
B) The9vitality9of9business9depends9on9society's9actions9and9attitudes.
C) The9survival9of9business9is9independent9of9society.
D) Both9“All9business9decisions9have9a9social9impact”9and9“The9vitality9of9business
9 depends9on9society’s9actions9and9attitudes”9are9correct.
19) Which9of9the9following9statements9is9not9true9about9the9interactive9social9system?
A) Business9and9society9need,9as9well9as9influence,9each9other.
B) The9boundary9between9business9and9society9is9clear9and9distinct.
C) Business9is9a9part9of9society,9and9society9penetrates9far9and9often9into9business.
D) Business9and9society9are9both9separate9and9connected.
20) A9firm9subscribing9to9the9shareholder9theory9of9the9firm9would9mainly9be9concerned9with
9providing9long-term9value9for9its
A) investors.
B) customers.
C) board9of9Directors.
D) community.
, 21) Corporations9that9follow9the9stakeholder9theory9of9the9firm9create9value9by
A) constantly9innovating9new9products.
B) increasing9their9stock9price.
C) developing9their9employees’9skills.
D) All9of9these9choices9are9correct.
22) Which9argument9says9that9stakeholder9management9realistically9depicts9how9companies
9really9work?
A) descriptive9argument
B) instrumental9argument
C) normative9argument
D) fiduciary9argument
23) The9instrumental9argument9states9that9stakeholder9management9is
A) a9more9realistic9description9of9how9companies9really9work.
B) more9effective9as9a9corporate9strategy.
C) simply9the9right9thing9to9do.
D) determined9by9the9amount9of9stock9issued.
24) The9fiduciary9duty9of9managers9benefits9a9firm's
A) shareholders.
B) customers.
C) employees.
D) All9of9these9choices9are9correct.
25) The9main9reason9a9number9of9European9countries9require9public9companies9to9include
9employee9members9on9their9boards9of9directors9is9that
A) the9employees9will9be9available9to9answer9other9board9members'9questions.
B) management9will9not9have9to9attend9the9meetings.
C) employees'9interests9will9be9explicitly9represented.
D) employees9will9have9more9power9than9any9other9stakeholder.
26) Stakeholder9groups9can9include
A) shareholders.
B) business9support9groups.
C) environmental9activists.
D) All9of9these9choices9are9correct.
9 9
Business9and9Society9Stakeholders9Ethics9Public9Policy917th9Edition9By9Anne9Lawre
nce
Chapter91-
199Answers9are9at9the9end9of9Each9chapter9Chapter91
Student9name:
TRUE/FALSE9-9Write9'T'9if9the9statement9is9true9and9'F'9if9the9statement9is9false.
1) A9business9is9any9organization9that9is9engaged9in9making9a9product9or9providing9a9service9for
9a9profit.
⊚9 true
⊚9 false
2) The9term9stakeholder9refers9exclusively9to9the9founders9of9a9business9organization.
⊚9 true
⊚9 false
3) Businesses9and9society9are9independent9of9each9other.
⊚9 true
⊚9 false
4) The9stakeholder9theory9of9the9firm9argues9that9a9firm’s9sole9purpose9is9to9create9long-
term9value9for9its9shareholders.
⊚9 true
⊚9 false
5) The9instrumental9argument9for9the9stakeholder9theory9of9the9firm9says9that9companies
9perform9better9if9they9consider9the9rights9and9concerns9of9multiple9groups9in9society.
⊚9 true
⊚9 false
6) The9normative9argument9for9the9stakeholder9theory9of9the9firm9says9that9the9stakeholder9view
9is9simply9a9more9realistic9description9of9how9companies9really9work.
⊚9 true
⊚9 false
,7) Nonmarket9stakeholders9are9those9that9engage9in9economic9transactions9with9the9company9as
9it9carries9out9its9primary9purpose9of9providing9society9with9goods9and9services.
⊚9 true
⊚9 false
8) Market9stakeholders9include9nongovernmental9organizations9and9business9support9groups.
⊚9 true
⊚9 false
9) Government9can9be9considered9both9a9market9and9a9nonmarket9stakeholder.
⊚9 true
⊚9 false
10) The9interests9of9different9stakeholders9often9coincide.
⊚9 true
⊚9 false
11) The9first9step9of9stakeholder9analysis9is9to9identify9relevant9stakeholders.
⊚9 true
⊚9 false
12) Some9scholars9have9suggested9that9managers9pay9the9most9attention9to9stakeholders
9possessing9the9least9salience.
⊚9 true
⊚9 false
13) The9organization9of9a9corporation’s9boundary-spanning9functions9is9complex.
⊚9 true
⊚9 false
14) Businesses9are9increasingly9trying9to9meet9their9commitments9to9multiple9stakeholders.
⊚9 true
⊚9 false
15) The9external9environment9of9business9is9static.
⊚9 true
⊚9 false
,MULTIPLE9CHOICE9-
9Choose9the9one9alternative9that9best9completes9the9statement9or9answers9the9question.
16) The9relationship9between9business9and9society9is9most9accurately9described9by9which
9statement?
A) Business9is9an9unbounded9entity9within9the9larger9bounded9entity9of9society.
B) Society9is9a9distinct9bounded9entity9within9the9larger9bounded9entity9of9business.
C) Business9is9a9distinct9bounded9entity9separate9from9the9bounded9entity9of9society.
D) Business9is9a9distinct9bounded9entity9within9the9larger9bounded9entity9of9society.
17) According9to9general9systems9theory,9boundary9exchanges9are9exemplified9by9which9of9the
9following?
A) An9industrial9company9installs9new9equipment9in9its9plant9to9comply9with
9environmental9regulations.
B) A9software9company9develops9an9application9for9a9client.
C) A9purchasing9department9employee9negotiates9a9price9on9parts9with9a9supplier.
D) All9of9these9choices9are9correct.
18) The9inseparable9relationship9between9business9and9society9results9in9which9of9the9following?
A) All9business9decisions9have9a9social9impact.
B) The9vitality9of9business9depends9on9society's9actions9and9attitudes.
C) The9survival9of9business9is9independent9of9society.
D) Both9“All9business9decisions9have9a9social9impact”9and9“The9vitality9of9business
9 depends9on9society’s9actions9and9attitudes”9are9correct.
19) Which9of9the9following9statements9is9not9true9about9the9interactive9social9system?
A) Business9and9society9need,9as9well9as9influence,9each9other.
B) The9boundary9between9business9and9society9is9clear9and9distinct.
C) Business9is9a9part9of9society,9and9society9penetrates9far9and9often9into9business.
D) Business9and9society9are9both9separate9and9connected.
20) A9firm9subscribing9to9the9shareholder9theory9of9the9firm9would9mainly9be9concerned9with
9providing9long-term9value9for9its
A) investors.
B) customers.
C) board9of9Directors.
D) community.
, 21) Corporations9that9follow9the9stakeholder9theory9of9the9firm9create9value9by
A) constantly9innovating9new9products.
B) increasing9their9stock9price.
C) developing9their9employees’9skills.
D) All9of9these9choices9are9correct.
22) Which9argument9says9that9stakeholder9management9realistically9depicts9how9companies
9really9work?
A) descriptive9argument
B) instrumental9argument
C) normative9argument
D) fiduciary9argument
23) The9instrumental9argument9states9that9stakeholder9management9is
A) a9more9realistic9description9of9how9companies9really9work.
B) more9effective9as9a9corporate9strategy.
C) simply9the9right9thing9to9do.
D) determined9by9the9amount9of9stock9issued.
24) The9fiduciary9duty9of9managers9benefits9a9firm's
A) shareholders.
B) customers.
C) employees.
D) All9of9these9choices9are9correct.
25) The9main9reason9a9number9of9European9countries9require9public9companies9to9include
9employee9members9on9their9boards9of9directors9is9that
A) the9employees9will9be9available9to9answer9other9board9members'9questions.
B) management9will9not9have9to9attend9the9meetings.
C) employees'9interests9will9be9explicitly9represented.
D) employees9will9have9more9power9than9any9other9stakeholder.
26) Stakeholder9groups9can9include
A) shareholders.
B) business9support9groups.
C) environmental9activists.
D) All9of9these9choices9are9correct.
