3.Whichofthefollowingdonottypicallyengageintransactionswithacompanyandthusarenotessentialforits survival? a.Employees d.Investors e.Customers ANSWER: b POINTS: 1 DIFFICULTY: Easy REFERENCES: p.32 LEARNINGOBJECTIVES: 2.1: Identify stakeholders’ in business ethics NATIONALSTANDARDS: UnitedStates-BUSPROG:Ethics STATESTANDARDS: UnitedStates- NONE- DISC:EthicalResponsibilities-EthicalResponsibilities KEYWORDS: Blooms:Knowledge 4.Afirmthatmakesuseofa recognizesotherstakeholdersbeyondinvestors,employees,andsuppliers,and explicitlyacknowledgesthetwo-waydialogthatexistsbetweenafirm'sinternalandexternalenvironments. a.stakeholdermodelofcorporategovernance b.stakeholderbias c.codeofethics d.stakeholderinteractionmodel e.corporateinterfacemodel ANSWER: d POINTS: 1 DIFFICULTY: Moderate REFERENCES: p.33 LEARNINGOBJECTIVES: 2.1: Identify stakeholders’ roles in business ethics NATIONALSTANDARDS: UnitedStates-BUSPROG:Ethics STATESTANDARDS: UnitedStates- NONE- DISC:EthicalResponsibilities-EthicalResponsibilities KEYWORDS: Blooms:Comprehension
5.Thedegreetowhichafirmunderstandsandaddressesstakeholderdemandscanbereferredtoas a.a stakeholderorientation. b.a shareholderorientation. c.the stakeholderinteractionmodel. d.atwo-waystreet. e.acontinuum. ANSWER: a POINTS: 1 DIFFICULTY: Easy REFERENCES: p.33 LEARNINGOBJECTIVES: 2.1: Identify stakeholders’ roles in business ethics NATIONALSTANDARDS: UnitedStates-BUSPROG:Ethics STATESTANDARDS: UnitedStates- NONE- DISC:EthicalResponsibilities-EthicalResponsibilities KEYWORDS: Blooms:Knowledge 6.Whichof thefollowingindustriestendstogeneratea highleveloftrustfromconsumersandstakeholders? a.Insurance b.Technology c.Banks d.Mortgagelenders e.Financialservices ANSWER: b POINTS: 1 DIFFICULTY: Moderate REFERENCES: p.32 LEARNINGOBJECTIVES: 2.1: Identify stakeholders’ roles in business ethics NATIONALSTANDARDS: UnitedStates-BUSPROG:Ethics STATESTANDARDS: UnitedStates- NONE- DISC:EthicalResponsibilities-EthicalResponsibilities KEYWORDS: Blooms:Knowledge
7.Whichofthefollowingis nota benefitthatprimarystakeholderstendtoprovidetoorganizations? a.Suppliesofcapitalandresources. b.Expertiseandleadership c.Word-of-mouthpromotion d.Infrastructure e.Pro-bonobookkeeping ANSWER: e POINTS: 1 DIFFICULTY: Easy REFERENCES: p.32 LEARNINGOBJECTIVES: 2.1: Identify stakeholders’ roles in business ethics NATIONALSTANDARDS: UnitedStates-BUSPROG:Ethics STATESTANDARDS: UnitedStates- NONE- DISC:EthicalResponsibilities-EthicalResponsibilities KEYWORDS: Blooms:Knowledge 8.A stakeholdergroupthatis absolutelynecessaryforafirm’ssurvivalis definedas a.direct. b.tertiary. c.secondary. d.special-interest. e.primary. ANSWER: e POINTS: 1 DIFFICULTY: Easy REFERENCES: p.32 LEARNINGOBJECTIVES: 2.1: Identify stakeholders’ roles in business ethics NATIONALSTANDARDS: UnitedStates-BUSPROG:Ethics STATESTANDARDS: UnitedStates- NONE- DISC:EthicalResponsibilities-EthicalResponsibilities KEYWORDS: Blooms:Knowledge
9.Whenunethicalactsarediscoveredin mostinstances a.theyare causedbyunwillingparticipants. b.thecauseisduetoexternalstakeholders. c.theperpetratorsarecaughtandprosecuted. d.therewasknowingcooperationorcomplicityfromwithinthecompany. e.thecauseisacorruptBoardofDirectors. ANSWER: d POINTS: 1 DIFFICULTY: Easy REFERENCES: p.30 LEARNINGOBJECTIVES: 2.1: Identify stakeholders’ roles in business ethics NATIONALSTANDARDS: UnitedStates-BUSPROG:Ethics STATESTANDARDS: UnitedStates- NONE- DISC:EthicalResponsibilities-EthicalResponsibilities KEYWORDS: Blooms:Knowledge 10.Whichofthefollowingis nota methodtypicallyemployedbyfirmswhenresearchingrelevantstakeholdergroups? a.Surveys b.Focusgroups c.Internetsearches d.Pressreviews e.Guessing ANSWER: e POINTS: 1 DIFFICULTY: Easy REFERENCES: p.35 LEARNINGOBJECTIVES: 2.1: Identify stakeholders’ in business ethics NATIONALSTANDARDS: UnitedStates-BUSPROG:Ethics STATESTANDARDS: UnitedStates- NONE- DISC:EthicalResponsibilities-EthicalResponsibilities KEYWORDS: Blooms:Knowledge
11.Astakeholderorientationcanbeviewedasa(n) a.necessityforbusinesssuccess. b.continuum. c.polarizingconcept. d.good marketingploy. e.expensiveproposition. ANSWER: b POINTS: 1 DIFFICULTY: Moderate REFERENCES: p.36 LEARNINGOBJECTIVES: 2.1: Identify stakeholders’ roles in business ethics NATIONALSTANDARDS: UnitedStates-BUSPROG:Ethics STATESTANDARDS: UnitedStates- NONE- DISC:EthicalResponsibilities-EthicalResponsibilities KEYWORDS: Blooms:Knowledge 12.Shareholdersprovideresourcestoan organizationthatarecriticaltolongtermsuccess.Whichof thefollowingdoes thebooksuggestthatsuppliersoffer? a.Thepromiseofcustomerloyalty b.Materialresourcesand/orintangibleknowledge c.Infrastructure d.Revenue e.Leadershipskills ANSWER: b POINTS: 1 DIFFICULTY: Moderate REFERENCES: p.32 LEARNINGOBJECTIVES: 2.1: Identify stakeholders’ in business ethics NATIONALSTANDARDS: UnitedStates-BUSPROG:Ethics STATESTANDARDS: UnitedStates- NONE- DISC:EthicalResponsibilities-EthicalResponsibilities KEYWORDS: Blooms:Knowledge
13.Whichofthefollowingis notassociatedwiththestakeholderinteractionmodel? a.Involvesatwo-wayrelationshipbetweenfirmandstakeholders b.Recognizestheinputofinvestors,employees,and suppliers c.Explicitlyacknowledgesdialoguewith afirm'sinternalenvironment d.Explicitlyacknowledgesdialoguewithafirm'sexternalenvironment e.Identifiesthemassmedia,specialinterestgroups,competitors,andtradeassociationsas primarystakeholders ANSWER: e POINTS: 1 DIFFICULTY: Easy REFERENCES: p.36 LEARNINGOBJECTIVES: 2.1: Identify stakeholders’ roles in business ethics NATIONALSTANDARDS: UnitedStates-BUSPROG:Ethics STATESTANDARDS: UnitedStates- NONE- DISC:EthicalResponsibilities-EthicalResponsibilities KEYWORDS: Blooms:Knowledge 14.Thefirstofthethreeactivitiesthatareassociatedwiththestakeholderorientationis the a.organization-widegenerationofdata. b.organization'sresponsivenesstointelligence. consumerattributesidentified. d.organizationalstrategyoftargetmarkets. e.humanrelationsdepartment'ssetof priorities. ANSWER: a POINTS: 1 DIFFICULTY: Easy REFERENCES: p.33 LEARNINGOBJECTIVES: 2.1: Identify stakeholders’ roles in business ethics NATIONALSTANDARDS: UnitedStates-BUSPROG:Ethics STATESTANDARDS: UnitedStates- NONE- DISC:EthicalResponsibilities-EthicalResponsibilities KEYWORDS: Blooms:Knowledge
19.Someeconomistsbelievethatifcompaniesaddresseconomicandlegalissues,theyaresatisfyingthedemandsof society,and thattryingto anticipateand meetadditionalneedswouldbealmostimpossible.Whicheconomist’s theoryaretheyfollowingmostcloselywiththis belief? a.AdamSmith. b. TheodoreLevitt. c. Norman Bowie. d.HermanMiller e.MiltonFriedman. ANSWER: e POINTS: 1 DIFFICULTY: Moderate REFERENCES: p.40 LEARNINGOBJECTIVES: 2.4: Delineate a stakeholder orientation in creating corporate social responsibility NATIONALSTANDARDS: UnitedStates-BUSPROG:Ethics STATESTANDARDS: UnitedStates- NONE- DISC:EthicalResponsibilities-EthicalResponsibilities KEYWORDS: Blooms:Comprehension 20.Inascendingorder,Carroll'sfourlevelsofsocialresponsibilityare a.ethical,legal,economic,philanthropic. b.economic,ethical philanthropic,legal. c.economic,legal, ethical,philanthropic. d.legal, ethical,economic,philanthropic. e.ethical,legal,moral,economic. ANSWER: c POINTS: 1 DIFFICULTY: Moderate REFERENCES: p. 37,Figure2-3 LEARNINGOBJECTIVES: 2.2: Define social responsibility NATIONALSTANDARDS: UnitedStates-BUSPROG:Ethics STATESTANDARDS: UnitedStates- NONE- DISC:EthicalResponsibilities-EthicalResponsibilities KEYWORDS: Blooms:Knowledge
21.Thetermusedtoexpresshowa firmmeetsits stakeholderexpectationsof its economic,legal,ethical,and philanthropicresponsibilitiesis a.reputation. b.corporatecitizenship. c.corporateethicalaudit. d.ethicalcitizenship. e.fiduciaryduties. ANSWER: b POINTS: 1 DIFFICULTY: Easy REFERENCES: p.37 LEARNINGOBJECTIVES: 2.2: Define social responsibility NATIONALSTANDARDS: UnitedStates-BUSPROG:Ethics STATESTANDARDS: UnitedStates- NONE- DISC:EthicalResponsibilities-EthicalResponsibilities KEYWORDS: Blooms:Knowledge 22.In corporategovernance, istheprocessof auditingandimprovingorganizationaldecisionsandactions.a.profit b.loyalty c.accountability d.control e.diligence ANSWER: d POINTS: 1 DIFFICULTY: Easy REFERENCES: p.43 LEARNINGOBJECTIVES: 2.5-Exploretheroleof corporategovernanceinstructuringethicsandsocial responsibilityinbusiness. NATIONALSTANDARDS: UnitedStates-BUSPROG:Ethics STATESTANDARDS: UnitedStates- NONE- DISC:EthicalResponsibilities-EthicalResponsibilities KEYWORDS: Blooms:Knowledge
23.Accountability,oversight,andcontrolallfallunderthedefinitionandimplementationofcorporate a.profit. b.loyalty. c.care. d.governance. e.diligence. ANSWER: d POINTS: 1 DIFFICULTY: Easy REFERENCES: p.43 LEARNINGOBJECTIVES: 2.5-Exploretheroleof corporategovernanceinstructuringethicsandsocial responsibilityinbusiness. NATIONALSTANDARDS: UnitedStates-BUSPROG:Ethics STATESTANDARDS: UnitedStates- NONE- DISC:EthicalResponsibilities-EthicalResponsibilities KEYWORDS: Blooms:Knowledge 24.Majorcorporategovernanceissuesnormallyinvolve decisions.(Choosetheresponsethatismostcorrect) b.tactical-level c.divisional-level d.marketing-level e.accounting-level ANSWER: a POINTS: 1 DIFFICULTY: Moderate REFERENCES: p.44 LEARNINGOBJECTIVES: 2.5-Exploretheroleof corporategovernanceinstructuringethicsandsocial responsibilityinbusiness. NATIONALSTANDARDS: UnitedStates-BUSPROG:Ethics STATESTANDARDS: UnitedStates- NONE- DISC:EthicalResponsibilities-EthicalResponsibilities KEYWORDS: Blooms:Comprehension
25.Whichof thefollowingisamajorethicalconcernamongcorporateboardsof directors? a.Compensation b.The non-traditionaldirectorshipapproach c.Dividendreporting d.Corporatesocialaudits e.Debtswaps ANSWER: a POINTS: 1 DIFFICULTY: Easy REFERENCES: p.44, bonuses p.46 p.48 LEARNINGOBJECTIVES: 2.5-Exploretheroleof corporategovernanceinstructuringethicsandsocial responsibilityinbusiness. NATIONALSTANDARDS: UnitedStates-BUSPROG:Ethics STATESTANDARDS: UnitedStates- NONE- DISC:EthicalResponsibilities-EthicalResponsibilities KEYWORDS: Blooms:Knowledge 26.OnepolicytoaddresstheissueofexecutivepaywasimplementedbyJ.P.Morgan,itstatedthat a.thereshouldbe no limiton whattopexecutivescanearn. b.managersshouldearnnomorethantwentytimesthepayofotheremployees. c.topmanagersshouldmakethesameamountasotheremployees. d.employeescandeterminehowmuchmanagersmake. e.thegovernmentshoulddeterminetheworthofeachmanager’sservice. ANSWER: b POINTS: 1 DIFFICULTY: Moderate REFERENCES: p.48 LEARNINGOBJECTIVES: 2.5-Exploretheroleof corporategovernanceinstructuringethicsandsocial responsibilityinbusiness. NATIONALSTANDARDS: UnitedStates-BUSPROG:Ethics STATESTANDARDS: UnitedStates- NONE- DISC:EthicalResponsibilities-EthicalResponsibilities KEYWORDS: Blooms:Knowledge
29.The modelisfoundedinclassiceconomicprecepts. a.economic b. shareholder c. stakeholder d.board e.ISO ANSWER: b POINTS: 1 DIFFICULTY: Easy REFERENCES: p.45 LEARNINGOBJECTIVES: 2.5-Exploretheroleof corporategovernanceinstructuringethicsandsocial responsibilityinbusiness. NATIONALSTANDARDS: UnitedStates-BUSPROG:Ethics STATESTANDARDS: UnitedStates- NONE- DISC:EthicalResponsibilities-EthicalResponsibilities KEYWORDS: Blooms:Knowledge 30.Whichofthefollowingarenottypicallysecondarystakeholders? a.Televisionnewsanchors b.Special-interestgroups c.Customers ANSWER: c POINTS: 1 DIFFICULTY: Easy REFERENCES: p. 35,Figure2-2 LEARNINGOBJECTIVES: 2.1: Identify stakeholders’ roles in business ethics: Identify stakeholders’ roles in business ethics NATIONALSTANDARDS: UnitedStates-BUSPROG:Ethics STATESTANDARDS: UnitedStates- NONE- DISC:EthicalResponsibilities-EthicalResponsibilities KEYWORDS: Blooms:Comprehension 31.Whichofthefollowingarenottypicallyprimarystakeholders? a.Customers d.Shareholders e.Suppliers ANSWER: b POINTS: 1
DIFFICULTY: Easy REFERENCES: p. 35,Figure2-2 LEARNINGOBJECTIVES: 2.1: Identify stakeholders’ roles in business ethics NATIONALSTANDARDS: UnitedStates-BUSPROG:Ethics STATESTANDARDS: UnitedStates- NONE- DISC:EthicalResponsibilities-EthicalResponsibilities KEYWORDS: Blooms:Comprehension criticsarguethathighcompensationforboardsof directorsisabadthing? a.Itistooexpensivefor the organization. b.It couldcauseconflictsofinterestbetweenthedirectorsandtheorganization. c.Itisnotfairtopoorlycompensatedemployees. d.Highpaywillrendertheboardlesscomplacent. e.Boardof directorcompensationisnotamajorissue. ANSWER: b POINTS: 1 DIFFICULTY: Easy REFERENCES: p.46 LEARNINGOBJECTIVES: 2.5-Exploretheroleof corporategovernanceinstructuringethicsandsocial responsibilityinbusiness. NATIONALSTANDARDS: UnitedStates-BUSPROG:Ethics STATESTANDARDS: UnitedStates- NONE- DISC:EthicalResponsibilities-EthicalResponsibilities KEYWORDS: Blooms:Knowledge
35.Astakeholderorientationisnot completeunlessitincludes a.clearaccountingprocedures. b.majorfinancingactivities. c.marketingstrategy. d.feedbackfromspecial-interestgroups. e.activitiesthatactuallyaddressstakeholderissues. ANSWER: e POINTS: 1 DIFFICULTY: Easy REFERENCES: p.36 LEARNINGOBJECTIVES: 2.1: Identify stakeholders’ roles in business ethics NATIONALSTANDARDS: UnitedStates-BUSPROG:Ethics STATESTANDARDS: UnitedStates- NONE- DISC:EthicalResponsibilities-EthicalResponsibilities KEYWORDS: Blooms:Knowledge 36.Compareandcontrastthestakeholderandshareholdermodelsofcorporategovernance. ANSWER: Theshareholdermodelof corporategovernanceisfoundedon classiceconomic precepts,includingthe goalofmaximizingwealthfor investorsandowners. The stakeholdermodelofcorporategovernanceadoptsa broaderviewofthepurposeof businessandanswerstoallstakeholders. POINTS: 1 DIFFICULTY: Easy REFERENCES: p.45 LEARNINGOBJECTIVES: 2.5-Exploretheroleof corporategovernanceinstructuringethicsandsocial responsibilityinbusiness. NATIONALSTANDARDS: UnitedStates-BUSPROG:Ethics STATESTANDARDS: UnitedStates- NONE- DISC:EthicalResponsibilities-EthicalResponsibilities KEYWORDS: Blooms:Knowledge 37.Whyisethicalmisconductmoredifficulttoovercomethanpoorfinancialperformance? ANSWER: Lostfinancescanberegainedbutlossofreputationandshareholderconfidencecould be deadly. POINTS: 1 DIFFICULTY: Easy REFERENCES: p.31 LEARNINGOBJECTIVES: 2.1: Identify stakeholders’ roles in business ethics NATIONALSTANDARDS: UnitedStates-BUSPROG:Ethics STATESTANDARDS: UnitedStates- NONE- DISC:EthicalResponsibilities-EthicalResponsibilities KEYWORDS: Blooms:Comprehension
38.Discussthedifferencebetweenprimaryandsecondarystakeholdersin thestakeholderinteractionmodelandgive examplesforeachtype. ANSWER: Thestakeholderinteractionmodelacknowledgestherearereciprocalrelationships betweenthecompanyandseveralprimaryandsecondarystakeholders. Themodel alsoacknowledgesthedialoguebetweenthecompany'sinternalandexternal environments. Primarystockholdersareessentialtothecompany'ssurvivaland include: employees,shareholders,suppliers,community,governmentregulatory agenciesandcustomers. Secondarystakeholdersarenotessentialtothecompany's survivalandinclude: specialinterestgroups,the massmedia,competitorsandtrade associations. POINTS: 1 DIFFICULTY: Moderate REFERENCES: stakeholderinteractionmodel p.35, figure2-2 LEARNINGOBJECTIVES: 2.1: Identify stakeholders’ roles in business ethics NATIONALSTANDARDS: UnitedStates-BUSPROG:Ethics STATESTANDARDS: UnitedStates- NONE- DISC:EthicalResponsibilities-EthicalResponsibilities KEYWORDS: Blooms:Comprehension 39.Whydo somebusinesspeopleandscholarsquestionwhetherethicsshouldhavearoleinbusiness? ANSWER: Manybusinesspeopleandscholarsquestionthe roleofethicsandsocialresponsibility inbusiness. Legalandeconomicresponsibilitiesaregenerallyacceptedas themost importantdeterminantsof performance. "Ifthisiswelldone,"sayclassiceconomic theorists,"profitsaremaximizedmoreorlesscontinuouslyand firmscarryout their majorresponsibilitiestosociety." POINTS: 1 DIFFICULTY: Easy REFERENCES: p.39 LEARNINGOBJECTIVES: 2.3: Examine the relationship between stakeholder orientation and social responsibility STATESTANDARDS: UnitedStates- NONE- DISC:EthicalResponsibilities-EthicalResponsibilities KEYWORDS: Blooms:Comprehension
40.Discussthreecorporategovernanceissues,whytheyaredefinedasissues,andhowyouwouldsolvethem.Use examplesin youranswer. ANSWER: Studentscouldchoosefromanyof severaltopicslistedinthetextandinTable2-4 CorporateGovernanceTopicsonpage43. Moststudentswillchooseexecutive compensationasonetopicsinceitwasdiscussedfrequentlyin thetextandis thefirst issuelistedinthetable. Compensationisan issuebecausemostpeoplebelieve executivesare notworthmillionsofdollarsinannualsalaryandbonuses. Students maysiteJP Morgan'spolicylimitingexecutivepaytotwentytimesthepayof anyother employee. Thereareseveralotherissuesincluding POINTS: 1 DIFFICULTY: Moderate REFERENCES: p. 43, Table2-4 p.47-48, examplegiveninanswer LEARNINGOBJECTIVES: 2.5-Exploretheroleof corporategovernanceinstructuringethicsandsocial responsibilityinbusiness. NATIONALSTANDARDS: UnitedStates-BUSPROG:Ethics STATESTANDARDS: UnitedStates- NONE- DISC:EthicalResponsibilities-EthicalResponsibilities KEYWORDS: Blooms:Comprehension