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Test Bank for Business and Society Stakeholders Ethics Public Policy 17th Edition By Anne Lawrence Chapter 1-19
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Test Bank for Business and Society Stakeholders Ethics Public Policy 17th Edition By Anne Lawrence Chapter 1-19

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  • 6 octobre 2024
  • 221
  • 2024/2025
  • Examen
  • Questions et réponses

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  • test
  • bank
  • for
  • business
  • and
  • society
  • stakeholders
  • ethics
  • public
  • policy
  • 17th
  • edition
  • by anne lawrence
  • all chapters
  • 1 19
  • 978 1265079246
  • 2024
  • latest
  • verified
  • complete
  • guide

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Test Bank for Business and Society Stakeholders Ethics Public
Policy 17th Edition By Anne Lawrence Chapter 1-19

Answers are at the end of Each chapter

Chapter 1
Student name:__________

TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false.

1) A business is any organization that is engaged in making a product or providing a
service for a profit.
⊚ true
⊚ false

2) The term stakeholder refers exclusively to the founders of a business organization.
⊚ true
⊚ false

3) Businesses and society are independent of each other.
⊚ true
⊚ false

4) The stakeholder theory of the firm argues that a firm’s sole purpose is to create
long-term value for its shareholders.
⊚ true
⊚ false

5) 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.
⊚ true
⊚ false

6) 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.
⊚ true
⊚ false




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7) Nonmarket stakeholders are those that engage in economic transactions with the
company as it carries out its primary purpose of providing society with goods and
services.
⊚ true
⊚ false

8) Market stakeholders include nongovernmental organizations and business support
groups.
⊚ true
⊚ false

9) Government can be considered both a market and a nonmarket stakeholder.
⊚ true
⊚ false

10) The interests of different stakeholders often coincide.
⊚ true
⊚ false

11) The first step of stakeholder analysis is to identify relevant stakeholders.
⊚ true
⊚ false

12) Some scholars have suggested that managers pay the most attention to
stakeholders possessing the least salience.
⊚ true
⊚ false

13) The organization of a corporation’s boundary-spanning functions is complex.
⊚ true
⊚ false

14) Businesses are increasingly trying to meet their commitments to multiple
stakeholders.
⊚ true
⊚ false

15) The external environment of business is static.



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⊚ true
⊚ false

MULTIPLE CHOICE - Choose the one alternative that best completes the
statement or answers the question.

16) 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.

17) 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.

18) The inseparable relationship between business and society results in which of the
following?
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 “All business decisions have a social impact” and “The vitality of business
depends on society’s actions and attitudes” are correct.

19) Which of the following statements is not true about the interactive social system?
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 business.
D) Business and society are both separate and connected.

20) A firm subscribing to the shareholder theory of the firm would mainly be concerned
with providing long-term value for its
A) investors.



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B) customers.
C) board of Directors.
D) community.

21) Corporations that follow the stakeholder theory of the firm create value by
A) constantly innovating new products.
B) increasing their stock price.
C) developing their employees’ skills.
D) All of these choices are correct.

22) Which argument says that stakeholder management realistically depicts how
companies really work?
A) descriptive argument
B) instrumental argument
C) normative argument
D) fiduciary argument

23) The instrumental argument states that stakeholder management is
A) a more realistic description of how companies really work.
B) more effective as a corporate strategy.
C) simply the right thing to do.
D) determined by the amount of stock issued.

24) The fiduciary duty of managers benefits a firm's
A) shareholders.
B) customers.
C) employees.
D) All of these choices are correct.

25) The main reason a number of European countries require public companies to
include employee members on their boards of directors is that
A) the employees will be available to answer other board members' questions.
B) management will not have to attend the meetings.
C) employees' interests will be explicitly represented.
D) employees will have more power than any other stakeholder.

26) Stakeholder groups can include
A) shareholders.



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