Test Bank for Business and Society:

Stakeholders, Ethics, Public Policy, 15th

Edition Anne Lawrence James Weber
Full download chapter at: https://testbankbell.com/product/test-bank-for-
business-and-society-stakeholders-ethics-public-policy-15th-edition-anne-
lawrence-james-weber/

Chapter 01

The Corporation and Its Stakeholders

 

True / False Questions

 

1. Walmart has been called a "template for 21st century capitalism." 

 
True    False
 
2. A business is any organization that is engaged in making a product or providing a service for a profit. 
 
True    False
 
3. Businesses and society are independent of one another. 
 
True    False
 
4. The stakeholder theory of the firm argues that a firm's sole purpose is to create 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
 

1-1
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
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
 
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 the business support groups. 
 
True    False
 
9. Government can be considered both a market and nonmarket stakeholder. 
 
True    False
 
10. The interests of different stakeholders often coincide. 
 
True    False
 
11. Stakeholders involved with one part of a company often may have little or no involvement with another
part of the company. 
 
True    False
 
12. Some scholars have suggested that managers pay the most attention to stakeholders possessing the least
salience. 
 
True    False
 
13. Urgency refers to the extent to which a stakeholder's actions are seen as proper or appropriate by the
broader society. 
 
True    False
 
14. A stakeholder map is a useful tool, because it enables managers to see quickly how stakeholders feel about
an issue and whether salient stakeholders tend to be in favor or opposed. 
 
True    False
 
15. The external environment of business is static. 
 
True    False
 
 

1-2
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Multiple Choice Questions
 

16. Which statement is not correct about the business-society interdependence? 

 

A. Business is a part of society.

B. Business is separated from the rest of society by clear boundaries.
C. Business activities impact other activities in society.
D. Actions by governments rarely affect business.
 
17. Which of the following examples best illustrates the boundary exchanges a company would encounter
according to the general systems theory? 
 

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 from a supplier.
D. All of the above.
 
18. Which of the following is the result of the inseparable relationship between business and society? 
 

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 A and B, but not C.
 
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 the business.
D. Business and society are both separate and connected.
 
20. A firm subscribing to the ownership theory of the firm would mainly be concerned with providing value for
its: 
 

A. Shareholders.
B. Customers.
C. Board of Directors.
D. Community.
 

1-3
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
21. Corporations that run their operations according to the stakeholder theory of the firm create value by: 
 

A. Innovating new products.

B. Increasing their stock price.
C. Developing their employees' professional skills.
D. All of the above.
 
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 says 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 owned in the firm.
 
24. The fiduciary duty of managers benefits a firm's: 
 

A. Shareholders.
B. Customers.
C. Employees.
D. All of the above.
 
25. The main reason a number of European countries require public companies to include employee members
on their boards of directors is so 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.
 

1-4
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
26. Stakeholder groups can include: 
 

A. Shareholders.
B. Business support groups.
C. Environmental activists.
D. All of the above.
 
27. Which one of the following is considered to be a nonmarket stakeholder of business? 
 

A. Customers.
B. Nongovernmental organizations.
C. Creditors.
D. Stockholders.
 
28. Which of the following is not considered to be a nonmarket stakeholder? 
 

A. Government agencies.
B. Creditors.
C. Activist groups.
D. Non-governmental organizations.
 
29. All of the following are external stakeholders of the firm except: 
 

A. Managers.
B. Customers.
C. Shareholders.
D. Suppliers.
 
30. The phenomenon of a person or group holding multiple stakeholder duties is referred to as: 
 

A. Role sets.
B. Primary stakeholder(s).
C. Ownership theory.
D. None of the above.
 

1-5
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
31. A stakeholder analysis: 
 

A. Creates equality among all stakeholder interests.

B. Allows managers to examine two primary questions.
C. Involves understanding the nature of stakeholder interests.
D. All of the above.
 
32. 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.
 
33. Which of the following statements is (are) correct about stakeholders' power? 
 

A. Different stakeholders have different types and degrees of power.

B. Shareholders' voting power is limited to the percentage of share owned by the shareholder.
C. It uses resources to achieve a desired decision or outcome.
D. All of the above.
 
34. Customers can exercise economic stakeholder power by: 
 

A. Voting on a proposed merger for the company and a competitor.

B. Boycotting products if they believe the goods are too expensive.
C. Attending the company's annual meeting.
D. Applying for a job with the company.
 
35. Which of the following is not an example of stakeholders' economic power? 
 

A. A supplier halts shipments to a business customer that demanded very low prices.
B. A social group protests a government's decision to raise taxes.
C. A local community boycotts a grocery store suspected of inaccurate weight scales.
D. An equal rights group refuses to do business with a company that has a discriminatory hiring policy.
 

1-6
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
36. When a community group sues a company for health effects caused by the unsafe disposal of toxic
chemicals, this is an exercise of a stakeholder's: 
 

A. Legal power.
B. Voting power.
C. Economic power.
D. Political power.
 
37. What stakeholder group(s) can exercise legal power? 
 

A. Employees.
B. Customers.
C. Shareholders.
D. All of the above.
 
38. What kind of power might a local community use to influence a company's decisions? 
 

A. Publicizing an issue.
B. Lobbying government policy makers for regulations.
C. Challenging whether a business activity should continue to operate.
D. All of the above.
 
39. With the explosive growth of technologies that facilitate the sharing of information, this kind of stakeholder
power has become increasingly important: 
 

A. Economic power.
B. Political power.
C. Informational power.
D. Legal power.
 
40. Stakeholders have been able to form international coalitions more successfully through use of: 
 

A. Government regulation.
B. Community involvement.
C. Communications technology.
D. Unions.
 

1-7
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
41. When something stands out from a background, is seen as important, or draws attention it is: 
 

A. Urgent.
B. Salient.
C. Powerful.
D. Legitimate.
 
42. 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.
 
43. A stakeholder map is a useful tool because: 
 

A. It enables mangers to see quickly how stakeholders feel about an issue.

B. It allows managers to evaluate what outcomes are likely regarding an issue.
C. It helps managers discourage or dissolve stakeholder coalitions.
D. Both A and B, but not C.
 
44. Departments, or offices, within an organization that reach across the dividing line that separates the
company from groups and people in society are: 
 

A. Inter-departmental divisions.
B. Geographical location areas.
C. Boundary-spanning departments.
D. Organizational maps.
 
45. Interactions between business and society occur: 
 

A. Within a finite natural ecosystem.

B. Only during an environmental crisis.
C. When business employees and the community are of similar cultural backgrounds.
D. When legislation is passed requiring interaction.
 
 

Short Answer Questions

 

1-8
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
46. Describe how general systems theory can be applied to a business. 
 

 
47. Supporters of the stakeholder theory of the firm make three core arguments for their position. Define and
provide examples of each. 
 

 
48. Compare and contrast the relationships a firm may have with market and non-market stakeholders. 
 

1-9
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McGraw-Hill Education.
49. Discuss why a manager should, or should not, be considered a stakeholder. 
 

 
50. Explain the process called stakeholder analysis. Include a description of its four key questions. 
 

 
51. What is a stakeholder map? Why is it a useful tool? 
 

1-10
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McGraw-Hill Education.
52. Describe and give examples of the external forces that shape the relationship between business and society. 
 

1-11
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McGraw-Hill Education.
 Chapter 01 The Corporation and Its Stakeholders Answer Key

True / False Questions

 

1. Walmart has been called a "template for 21st century capitalism." 

 
TRUE
 
Accessibility: Keyboard Navigation
Difficulty: 1 Easy
Learning Objective: 01-01 Understanding the relationship between business and society and the ways in which business and society are
part of an interactive system.

2. A business is any organization that is engaged in making a product or providing a service for a profit. 
 
TRUE
 
Accessibility: Keyboard Navigation
Difficulty: 1 Easy
Learning Objective: 01-01 Understanding the relationship between business and society and the ways in which business and society are
part of an interactive system.

3. Businesses and society are independent of one another. 

 
FALSE
 
Accessibility: Keyboard Navigation
Difficulty: 1 Easy
Learning Objective: 01-01 Understanding the relationship between business and society and the ways in which business and society are
part of an interactive system.

4. The stakeholder theory of the firm argues that a firm's sole purpose is to create value for its
shareholders. 
 
FALSE
 
Accessibility: Keyboard Navigation
Difficulty: 1 Easy
Learning Objective: 01-02 Considering the purpose of the modern corporation.

1-12
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
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
 
Accessibility: Keyboard Navigation
Difficulty: 1 Easy
Learning Objective: 01-02 Considering the purpose of the modern corporation.

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. 
 
FALSE
 
Accessibility: Keyboard Navigation
Difficulty: 1 Easy
Learning Objective: 01-02 Considering the purpose of the modern corporation.

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. 
 
FALSE
 
Accessibility: Keyboard Navigation
Difficulty: 1 Easy
Learning Objective: 01-03 Knowing what a stakeholder is and who a corporation's market and nonmarket and internal and external
stakeholders are.

8. Market stakeholders include nongovernmental organizations and the business support groups. 
 
FALSE
 
Accessibility: Keyboard Navigation
Difficulty: 1 Easy
Learning Objective: 01-03 Knowing what a stakeholder is and who a corporation's market and nonmarket and internal and external
stakeholders are.

9. Government can be considered both a market and nonmarket stakeholder. 

 
TRUE
 
Accessibility: Keyboard Navigation
Difficulty: 1 Easy
Learning Objective: 01-03 Knowing what a stakeholder is and who a corporation's market and nonmarket and internal and external
stakeholders are.

10. The interests of different stakeholders often coincide. 

 
TRUE
 
Accessibility: Keyboard Navigation

1-13
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
 Difficulty: 1 Easy
Learning Objective: 01-04 Conducting a stakeholder analysis and understanding the basis of stakeholder interests and power.

11. Stakeholders involved with one part of a company often may have little or no involvement with another
part of the company. 
 
TRUE
 
Accessibility: Keyboard Navigation
Difficulty: 1 Easy
Learning Objective: 01-04 Conducting a stakeholder analysis and understanding the basis of stakeholder interests and power.

12. Some scholars have suggested that managers pay the most attention to stakeholders possessing the least
salience. 
 
FALSE
 
Accessibility: Keyboard Navigation
Difficulty: 1 Easy
Learning Objective: 01-04 Conducting a stakeholder analysis and understanding the basis of stakeholder interests and power.

13. Urgency refers to the extent to which a stakeholder's actions are seen as proper or appropriate by the
broader society. 
 
FALSE
 
Accessibility: Keyboard Navigation
Difficulty: 1 Easy
Learning Objective: 01-04 Conducting a stakeholder analysis and understanding the basis of stakeholder interests and power.

14. A stakeholder map is a useful tool, because it enables managers to see quickly how stakeholders feel
about an issue and whether salient stakeholders tend to be in favor or opposed. 
 
TRUE
 
Accessibility: Keyboard Navigation
Difficulty: 1 Easy
Learning Objective: 01-04 Conducting a stakeholder analysis and understanding the basis of stakeholder interests and power.

15. The external environment of business is static. 

 
FALSE
 
Accessibility: Keyboard Navigation
Difficulty: 1 Easy
Learning Objective: 01-06 Analyzing the forces of change that continually reshape the business and society relationship.

1-14
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Multiple Choice Questions
 

16. Which statement is not correct about the business-society interdependence? 

 

A. Business is a part of society.

B. Business is separated from the rest of society by clear boundaries.
C. Business activities impact other activities in society.
D. Actions by governments rarely affect business.
 
Accessibility: Keyboard Navigation
Difficulty: 2 Medium
Learning Objective: 01-01 Understanding the relationship between business and society and the ways in which business and society are
part of an interactive system.

17. Which of the following examples best illustrates the boundary exchanges a company would encounter
according to the general systems theory? 
 

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 from a supplier.
D. All of the above.
 
Accessibility: Keyboard Navigation
Difficulty: 3 Hard
Learning Objective: 01-01 Understanding the relationship between business and society and the ways in which business and society are
part of an interactive system.

18. Which of the following is the result of the inseparable relationship between business and society? 
 

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 A and B, but not C.
 
Accessibility: Keyboard Navigation
Difficulty: 2 Medium
Learning Objective: 01-01 Understanding the relationship between business and society and the ways in which business and society are
part of an interactive system.

1-15
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
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 the business.
D. Business and society are both separate and connected.
 
Accessibility: Keyboard Navigation
Difficulty: 3 Hard
Learning Objective: 01-01 Understanding the relationship between business and society and the ways in which business and society are
part of an interactive system.

20. A firm subscribing to the ownership theory of the firm would mainly be concerned with providing value
for its: 
 

A. Shareholders.
B. Customers.
C. Board of Directors.
D. Community.
 
Accessibility: Keyboard Navigation
Difficulty: 2 Medium
Learning Objective: 01-02 Considering the purpose of the modern corporation.

21. Corporations that run their operations according to the stakeholder theory of the firm create value by: 
 

A. Innovating new products.

B. Increasing their stock price.
C. Developing their employees' professional skills.
D. All of the above.
 
Accessibility: Keyboard Navigation
Difficulty: 2 Medium
Learning Objective: 01-02 Considering the purpose of the modern corporation.

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.
 
Accessibility: Keyboard Navigation
Difficulty: 1 Easy

1-16
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
 Learning Objective: 01-02 Considering the purpose of the modern corporation.

23. The instrumental argument says 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 owned in the firm.
 
Accessibility: Keyboard Navigation
Difficulty: 1 Easy
Learning Objective: 01-02 Considering the purpose of the modern corporation.

24. The fiduciary duty of managers benefits a firm's: 

 

A. Shareholders.
B. Customers.
C. Employees.
D. All of the above.
 
Accessibility: Keyboard Navigation
Difficulty: 2 Medium
Learning Objective: 01-02 Considering the purpose of the modern corporation.

25. The main reason a number of European countries require public companies to include employee
members on their boards of directors is so 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.
 
Accessibility: Keyboard Navigation
Difficulty: 2 Medium
Learning Objective: 01-02 Considering the purpose of the modern corporation.

26. Stakeholder groups can include: 

 

A. Shareholders.
B. Business support groups.
C. Environmental activists.
D. All of the above.
 
Accessibility: Keyboard Navigation

1-17
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
 Difficulty: 1 Easy
Learning Objective: 01-03 Knowing what a stakeholder is and who a corporation's market and nonmarket and internal and external
stakeholders are.

27. Which one of the following is considered to be a nonmarket stakeholder of business? 

 

A. Customers.
B. Nongovernmental organizations.
C. Creditors.
D. Stockholders.
 
Accessibility: Keyboard Navigation
Difficulty: 1 Easy
Learning Objective: 01-03 Knowing what a stakeholder is and who a corporation's market and nonmarket and internal and external
stakeholders are.

28. Which of the following is not considered to be a nonmarket stakeholder? 

 

A. Government agencies.
B. Creditors.
C. Activist groups.
D. Non-governmental organizations.
 
Accessibility: Keyboard Navigation
Difficulty: 1 Easy
Learning Objective: 01-03 Knowing what a stakeholder is and who a corporation's market and nonmarket and internal and external
stakeholders are.

29. All of the following are external stakeholders of the firm except: 
 

A. Managers.
B. Customers.
C. Shareholders.
D. Suppliers.
 
Accessibility: Keyboard Navigation
Difficulty: 1 Easy
Learning Objective: 01-03 Knowing what a stakeholder is and who a corporation's market and nonmarket and internal and external
stakeholders are.

1-18
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
30. The phenomenon of a person or group holding multiple stakeholder duties is referred to as: 
 

A. Role sets.
B. Primary stakeholder(s).
C. Ownership theory.
D. None of the above.
 
Accessibility: Keyboard Navigation
Difficulty: 2 Medium
Learning Objective: 01-03 Knowing what a stakeholder is and who a corporation's market and nonmarket and internal and external
stakeholders are.

31. A stakeholder analysis: 

 

A. Creates equality among all stakeholder interests.

B. Allows managers to examine two primary questions.
C. Involves understanding the nature of stakeholder interests.
D. All of the above.
 
Accessibility: Keyboard Navigation
Difficulty: 2 Medium
Learning Objective: 01-04 Conducting a stakeholder analysis and understanding the basis of stakeholder interests and power.

32. 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.
 
Accessibility: Keyboard Navigation
Difficulty: 2 Medium
Learning Objective: 01-04 Conducting a stakeholder analysis and understanding the basis of stakeholder interests and power.

33. Which of the following statements is (are) correct about stakeholders' power? 
 

A. Different stakeholders have different types and degrees of power.

B. Shareholders' voting power is limited to the percentage of share owned by the shareholder.
C. It uses resources to achieve a desired decision or outcome.
D. All of the above.
 
Accessibility: Keyboard Navigation
Difficulty: 3 Hard
Learning Objective: 01-04 Conducting a stakeholder analysis and understanding the basis of stakeholder interests and power.

1-19
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
34. Customers can exercise economic stakeholder power by: 
 

A. Voting on a proposed merger for the company and a competitor.

B. Boycotting products if they believe the goods are too expensive.
C. Attending the company's annual meeting.
D. Applying for a job with the company.
 
Accessibility: Keyboard Navigation
Difficulty: 2 Medium
Learning Objective: 01-04 Conducting a stakeholder analysis and understanding the basis of stakeholder interests and power.

35. Which of the following is not an example of stakeholders' economic power? 

 

A. A supplier halts shipments to a business customer that demanded very low prices.
B. A social group protests a government's decision to raise taxes.
C. A local community boycotts a grocery store suspected of inaccurate weight scales.
D. An equal rights group refuses to do business with a company that has a discriminatory hiring policy.
 
Accessibility: Keyboard Navigation
Difficulty: 3 Hard
Learning Objective: 01-04 Conducting a stakeholder analysis and understanding the basis of stakeholder interests and power.

36. When a community group sues a company for health effects caused by the unsafe disposal of toxic
chemicals, this is an exercise of a stakeholder's: 
 

A. Legal power.
B. Voting power.
C. Economic power.
D. Political power.
 
Accessibility: Keyboard Navigation
Difficulty: 2 Medium
Learning Objective: 01-04 Conducting a stakeholder analysis and understanding the basis of stakeholder interests and power.

37. What stakeholder group(s) can exercise legal power? 

 

A. Employees.
B. Customers.
C. Shareholders.
D. All of the above.
 
Accessibility: Keyboard Navigation
Difficulty: 1 Easy

1-20
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
 Learning Objective: 01-04 Conducting a stakeholder analysis and understanding the basis of stakeholder interests and power.

38. What kind of power might a local community use to influence a company's decisions? 
 

A. Publicizing an issue.
B. Lobbying government policy makers for regulations.
C. Challenging whether a business activity should continue to operate.
D. All of the above.
 
Accessibility: Keyboard Navigation
Difficulty: 3 Hard
Learning Objective: 01-04 Conducting a stakeholder analysis and understanding the basis of stakeholder interests and power.

39. With the explosive growth of technologies that facilitate the sharing of information, this kind of
stakeholder power has become increasingly important: 
 

A. Economic power.
B. Political power.
C. Informational power.
D. Legal power.
 
Accessibility: Keyboard Navigation
Difficulty: 2 Medium
Learning Objective: 01-04 Conducting a stakeholder analysis and understanding the basis of stakeholder interests and power.

40. Stakeholders have been able to form international coalitions more successfully through use of: 
 

A. Government regulation.
B. Community involvement.
C. Communications technology.
D. Unions.
 
Accessibility: Keyboard Navigation
Difficulty: 1 Easy
Learning Objective: 01-04 Conducting a stakeholder analysis and understanding the basis of stakeholder interests and power.

41. When something stands out from a background, is seen as important, or draws attention it is: 
 

A. Urgent.
B. Salient.
C. Powerful.
D. Legitimate.
 
Accessibility: Keyboard Navigation

1-21
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
 Difficulty: 2 Medium
Learning Objective: 01-04 Conducting a stakeholder analysis and understanding the basis of stakeholder interests and power.

42. 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.
 
Accessibility: Keyboard Navigation
Difficulty: 3 Hard
Learning Objective: 01-04 Conducting a stakeholder analysis and understanding the basis of stakeholder interests and power.

43. A stakeholder map is a useful tool because: 

 

A. It enables mangers to see quickly how stakeholders feel about an issue.

B. It allows managers to evaluate what outcomes are likely regarding an issue.
C. It helps managers discourage or dissolve stakeholder coalitions.
D. Both A and B, but not C.
 
Accessibility: Keyboard Navigation
Difficulty: 3 Hard
Learning Objective: 01-04 Conducting a stakeholder analysis and understanding the basis of stakeholder interests and power.

44. Departments, or offices, within an organization that reach across the dividing line that separates the
company from groups and people in society are: 
 

A. Inter-departmental divisions.
B. Geographical location areas.
C. Boundary-spanning departments.
D. Organizational maps.
 
Accessibility: Keyboard Navigation
Difficulty: 1 Easy
Learning Objective: 01-05 Recognizing the diverse ways in which modern corporations organize internally to interact with various
stakeholders.

1-22
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
45. Interactions between business and society occur: 
 

A. Within a finite natural ecosystem.

B. Only during an environmental crisis.
C. When business employees and the community are of similar cultural backgrounds.
D. When legislation is passed requiring interaction.
 
Accessibility: Keyboard Navigation
Difficulty: 2 Medium
Learning Objective: 01-06 Analyzing the forces of change that continually reshape the business and society relationship.

Short Answer Questions

 

46. Describe how general systems theory can be applied to a business. 

 

Answers may vary.

 
Difficulty: 3 Hard
Learning Objective: 01-01 Understanding the relationship between business and society and the ways in which business and society are
part of an interactive system.

47. Supporters of the stakeholder theory of the firm make three core arguments for their position. Define
and provide examples of each. 
 

Answers may vary.

 
Difficulty: 3 Hard
Learning Objective: 01-02 Considering the purpose of the modern corporation.

48. Compare and contrast the relationships a firm may have with market and non-market stakeholders. 
 

Answers may vary.

 
Difficulty: 3 Hard
Learning Objective: 01-03 Knowing what a stakeholder is and who a corporation's market and nonmarket and internal and external

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McGraw-Hill Education.
 stakeholders are.

49. Discuss why a manager should, or should not, be considered a stakeholder. 

 

Answers may vary.

 
Difficulty: 3 Hard
Learning Objective: 01-03 Knowing what a stakeholder is and who a corporation's market and nonmarket and internal and external
stakeholders are.

50. Explain the process called stakeholder analysis. Include a description of its four key questions. 
 

Answers may vary.

 
Difficulty: 3 Hard
Learning Objective: 01-04 Conducting a stakeholder analysis and understanding the basis of stakeholder interests and power.

51. What is a stakeholder map? Why is it a useful tool? 

 

Answers may vary.

 
Difficulty: 3 Hard
Learning Objective: 01-04 Conducting a stakeholder analysis and understanding the basis of stakeholder interests and power.

52. Describe and give examples of the external forces that shape the relationship between business and
society. 
 

Answers may vary.

 
Difficulty: 3 Hard
Learning Objective: 01-06 Analyzing the forces of change that continually reshape the business and society relationship.

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McGraw-Hill Education.