Q&A Hero

Q: (p. 101) Which of these, according to Porter is NOT a force driving industry competition? A. Threat of new entrants B. Bargaining power of buyers C. Bargaining power of distributors D. Threat of substitutes

Q: (p. 100) Collectively, competitive forces determine the ultimate: A. Growth of a firm B. Survival of a firm C. Profitability of a firm D. Viability of a firm

Q: (p. 100) The state of competition is an industry, according to Porter, depends on ______ basic forces. A. 3 B. 5 C. 8 D. 2

Q: (p. 99) All of these are key characteristics of eco-efficient corporations EXCEPT A. Eco-efficiency is insular B. Eco-efficient firms are proactive C. Eco-efficiency is designed in D. Flexibility is imperative for eco-efficient strategy implementation

Q: (p. 99) Which of these represent a key characteristic of eco-efficient corporations? A. Eco-efficient firms are reactive B. Eco-efficiency is added on C. Flexibility is imperative for eco-efficient strategy implementation D. Eco-efficiency is insular

Q: (p. 99) One of the most important steps a firm can take in achieving a competitive position with regard to the eco-efficiency strategy is to A. Outsource the operations to a developing country B. Fully capitalize on technological developments C. Shift from service to manufacturing operations D. Mandate that all suppliers, distributors and customers reduce their resource consumption

Q: (p. 99) Company actions that produce more useful goods and services while continuously reducing recourse consumption and pollution refers to A. Product differentiation B. Economics of scale C. Barriers to entry D. Eco-efficiency

Q: (p. 98) Which of these is NOT an example of a federal ecological legislation? A. Air Quality Act B. Refuse Act C. Occupational Safety and Health Act D. Resource Recovery Act

Q: (p. 97) Business is now being held responsible for: A. Using only underground dumping sites B. Cleaning up its previous environmental damage C. Municipal sewer systems D. Ensuring that a "thermal blanket" is created

Q: (p. 96) Threats to life-supporting ecology caused principally by human activities is an industrial society are commonly referred to as A. Technology B. Co-efficiency C. Pollution D. Product differentiation

Q: (p. 96) The term ______ refers to the relationships among human beings and other living things and the air, soil and water that supports them. A. Pollution B. Ecology C. Operating environment D. Remote environment

Q: (p. 95) The quasi-science of anticipating environmental and competitive changes and estimating their importance to an organizations operation refers to A. Technological forecasting B. Ecology C. Industry environment D. Operating environment

Q: (p. 95) Awareness of technological changes in its industry helps the firm to: A. Interpret new regulations B. Act slowly and carefully C. Exploit new markets D. Forecast social change

Q: (p. 94) Political activity may have a significant impact on which of the following governmental functions? A. Religious orientation B. Customer function C. Manufacturer function D. Social changes

Q: (p. 94) Encompassed in political considerations is/are: A. Social values B. Disposable income C. Anti-trust laws D. Age distribution

Q: (p. 93) Political factors define the ______ parameters within which firms must operate. A. Economic B. Legal and regulatory C. Global D. Social and cultural

Q: (p. 90) A profound social change in the recent years has been A. The accelerating interest of consumers and employers in quality of life issue B. The decelerating interest of foreigners seeking jobs and immigrant status in the U.S. C. The remarkably high placement of U.S. high school education in math and science in the world D. The global warming effect

Q: (p. 90) One of the most profound social changes in recent years is: A. The decreased population B. An increasing number of women in the workforce C. The heavy reliability of children in the workforce D. Increased education of U.S. citizens

Q: (p. 90) The considerations involving the beliefs, values, attitudes and opinions of those in a firm's environment represent the ______. A. Social factors B. Personal factors C. Economic factors D. Political factors

Q: (p. 88) When we consider the level of disposable income, we are normally considering: A. Technological factors B. Economic factors C. Political factors D. Social factors

Q: (p. 88) Technological factors are a part of a firms ______ environment. A. Industry B. Operating C. Economic D. Remote

Q: (p. 88) Supplier power is an example of a factor that falls within the _________ environment. A. Economic B. Operating C. Industry D. Remote

Q: (p. 88) The ______ environment compromises factors that originate beyond and usually irrespective of, any single firm's operating situation. A. Remote B. Industry C. Operating D. Internal

Q: (p.88) The factors beyond the control of the firm that influence its choice of direction and action, organizational structure and internal processes refers to A. Directional strategies B. External environment C. Organizational processes D. Internal environment

Q: (p. 88) The remote external environment includes: A. Creditors B. Industry factors C. Employee D. Ecological factors

Q: (p. 88) A firm's external environment includes a remote sector, industry sector and an operating sector. The remote sector includes which of the following categories? A. Political, technological, economic and social B. Political, supplier power, economic and labor C. State government, production, social and economic D. Mission, company profile and competition

Q: (p. 88) The external environment can be divided into various interrelated subcategories: A. Remote, political, social B. Remote, social, operational C. Remote, industry, operating D. Technological and social

Q: (p. 66) A major consequence of the 2000-2002 accounting scandals was the ______ . A. Sherman Antitrust Act B. Waxman-Hatch Act C. Enron Act D. Sarbanes-Oxley Act

Q: (p. 66) Approximately _____ percent of senior corporate auditors now report directly to the Board of Directors audit committee. A. 30 B. 55 C. 75 D. 90

Q: (p. 66) The most significant change in the restructuring of governance structure due to the Sarbanes-Oxley Act is the A. Elimination of the external board members B. Heightened role of corporate internal auditors C. Removal of CFO from any overseeing role related to final financial statements D. Creation of inside corporate accountants reporting to external accounting firms

Q: (p. 66) A major consequence of the Sarbanes-Oxley Act has been the A. Political fallout in the Congress B. Outsourcing of jobs in lower wage countries C. Super growth in accounting firms in the U.S. D. Restructuring of the governance structure of American corporations

Q: (p. 66) If a company must restate its financial statements, per the Sarbanes-Oxley Act, the A. CEO and CFO must relinquish any bonus or incentive-based compensation B. CEO and CFO must resign C. CFO is prosecuted for falsifying information while CEO is charged a penalty D. CEO must find a new board of directors for the company

Q: (p. 63) The Sarbanes-Oxley Act includes provisions restricting the corporate control of all of these EXCEPT A. Attorneys B. Customers C. Executives D. Accounting firms

Q: (p. 63) Which of these is true about Sarbanes-Oxley Act? A. The CEO and CFO must verify every report containing the company's financial statements B. The directors and executive officers are required to trade the company's 401(k) plan, profit sharing plan and retirement plan during the black out period C. Companies are required to extend personal loans to its executives and directors D. The Act requires that the audit committee must be composed entirely of inside officers

Q: (p. 63) Which law revised and strengthened auditing and accounting standards? A. Federal Fair Packaging and Labeling Act B. Sarbanes-Oxley Act C. Truth in Lending Act D. National Environmental Policy Act

Q: (p. 62) One of the most contentious social responsibility issues confronting multinational firms pertains to A. Animal welfare B. Children C. Working conditions D. Human rights

Q: (p. 61) Which of these is the largest and fastest growing segment of social investing? A. Guideline portfolio investing B. Global investing C. Stockholder activism D. Ethical and economic responsibilities

Q: (p. 61) Large-scale social investing can be broken down into the two broad areas of A. Domestic and global B. Stockholder and stakeholder investing C. Guideline portfolio investing and shareholder activism D. Ethical and economic responsibilities

Q: (p. 60) Much of the impetus for social investing originated with A. Educational systems B. Religious organizations C. Small businesses D. Governmental regulations

Q: (p. 57) Which of these incidents can be credited for the resurgence of environmentalism with formation of the Coalition for Environmentally Responsible Economics (CERES)? A. Exxon Valdez B. Johnson and Johnson's Tylenol case C. Arthur Anderson incident D. WorldCom

Q: (p. 57) All of these are broad trends that are driving businesses to adopt CSR frameworks EXCEPT: A. The resurgence of environmentalism B. Increasing buyer power C. The globalization of business D. The technological developments

Q: (p. 56) Which of these is NOT true about CSR and the bottom line? A. Some CSR activities incur no dollar costs at all B. Philanthropic activities of a corporation are undertaken at a discounted cost to the firm C. Socially responsible behavior comes at a prohibitive cost especially given the regulations D. Socially responsible practices may create savings and, as a result, increase profits

Q: (p. 56) In the case of corporate social responsibility, costs and benefits are both ______ and ______. A. Social; political B. Ethical; discretionary C. Economic; social D. Political; ethical

Q: (p. 56) _______ is the idea that business has a duty to serve society in general as well as the financial interests of stockholders. A. Corporate social responsibility B. Discretionary responsibility C. Ethical responsibility D. Utilitarian responsibility

Q: (p. 55) Managers need to know that, in the view of the general public, _______ and _______ responsibilities are required, _______ responsibility is expected and _______ responsibility is desired. A. Legal; ethical; economic; discretionary B. Economic; legal; ethical; discretionary C. Ethical; economic; discretionary; legal D. Legal; economic; discretionary; ethical

Q: (p. 55) Through _______, managers attempt to enhance the image of their companies, products and services by supporting worthy causes. A. Good citizenship B. Public relations activities C. Full corporate responsibilities D. Social audits

Q: (p. 55) Public relations activities and good citizenship are examples of which responsibilities of a business organization? A. Legal B. Ethical C. Discretionary D. Economic

Q: (p. 55) _______ responsibilities are those that are voluntarily assumed by a business organization. A. Legal B. Ethical C. Discretionary D. Economic

Q: (p. 51) _______ responsibilities are the most basic social responsibilities of the firm. A. Legal B. Ethical C. Economic D. Discretionary

Q: (p. 53) Which responsibilities reflect the company's notion of right and proper business behavior? A. Ethical B. Economic C. Legal D. Discretionary

Q: (p. 51) ________ responsibilities reflect the form's obligations to comply with the laws that regulate business activities. A. Discretionary B. Economic C. Political D. Legal

Q: (p. 51) The duty of managers, as agents of the company owners, to maximize stockholder wealth is referred to as ________ responsibilities. A. Legal B. Discretionary C. Economic D. Ethical

Q: (p. 51) Which of these represents the most basic responsibilities of business? A. Economic B. Political C. Legal D. Ethical

Q: (p. 51) Which of the following is NOT a type of social commitment that strategic managers need to consider? A. Economic B. Political C. Legal D. Ethical

Q: (p. 51) Each firm regardless of ____ must decide how to meet its perceived social responsibility. A. Industry B. National origin C. Profitability D. Size

Q: (p. 51) Which of these represent a pollution prevention strategy in an organization? A. Automation of manufacturing facility B. Transforming business from manufacturing to service operations C. Changing the materials used or redesigning how operations are bid out D. Creating a pollution pit and putting all waste in it monthly

Q: (p. 50) Which of these are NOT outside stakeholders? A. Customers B. Stockholders C. Creditors D. Union

Q: (p. 50) Individuals and groups who are stockholders or employees of firms are called: A. Outsiders B. Insiders C. Internal stakeholders D. A special interest group

Q: (p. 50) Which of the following are inside stakeholders? A. Board of directors B. Customers C. Suppliers D. Creditors

Q: (p. 50) Which of these is NOT a principal set of inputs to the company mission? A. Demands of stakeholder groups B. Identification of CSR auditors C. Managerial operating philosophy D. Determinants of the product market offerings

Q: (p. 49) Fair competition is a: A. Customer claim B. Creditor claim C. Union claim D. Competitor claim

Q: (p. 49) Competitors as a stakeholder would have which of the following claims on a firm? A. Share in fringe benefits B. Election of board of directors C. Continuing source of business D. Business statesmanship on the part of peers

Q: (p. 49) Professional relationship in contracting for, purchasing and receiving goods and services represent the claim of which of these stakeholders vis--vis the firm? A. Local communities B. Customers C. Suppliers D. Creditors

Q: (p. 49) Adequate working conditions, freedom from arbitrary and capricious behavior on the part of company officials and share in fringe benefits are claims of which of these stakeholders? A. Customers B. Employees C. Suppliers D. Competitors

Q: (p. 49) Participation in distribution of profits and election of board of directors are claims of which of these stakeholders vis--vis the firm? A. Stockholders B. Customers C. Suppliers D. Government

Q: (p. 50) The demands of stakeholder groups constitute one principal set of inputs to the company A. Annual report B. Credit report C. Mission D. Public relations message

Q: (p. 49) Freedom to participate in collective bargaining is a typical claim of which stakeholder group? A. Stockholders B. Creditors C. Employees D. Society

Q: (p. 49) Continuing source of business is a typical claim of which stakeholder group? A. Stockholders B. Employees C. Suppliers D. Society

Q: (p. 49) Freedom from arbitrary and capricious behavior on the part of company officials is a typical claim of which stakeholder group? A. Stockholders B. Creditors C. Employees D. Society

Q: (p. 49) Security of pledged assets is a typical claim of which stakeholder group? A. Stockholders B. Employees C. Creditors D. Society

Q: (p. 49) Economic, social, and psychological satisfaction in the place of employment is a typical claim of which stakeholder group? A. Stockholders B. Creditors C. Employees D. Society

Q: (p. 48) The claims of various stakeholder groups often A. converge B. submerge C. conflict D. blend

Q: (p. 48) The process of reconciliation of the claims made on the firm is necessary because A. The number of claims against any firm is so large B. The government mandates that reconciliation be achieved C. The claims of various groups often conflict D. A firm is susceptible to liability suits

Q: (p. 48) With regards to stakeholders' specific claims vis--vis the firm, the claims of various stakeholders groups A. Are always in sync B. Are never resolved C. Must be ignored D. Often conflict

Q: (p. 48) Which of these is NOT a step in incorporating the interests of stakeholders into its mission statement? A. Identification of stakeholders B. Understanding the stakeholders' specific claims vis--vis the firm C. Incorporating all the claims of various stakeholders into the mission with equal emphasis D. Coordination of the claims with other elements of the company mission

Q: (p. 48) Which of these stakeholders, according to a survey of board of directors, was perceived to be least important? A. Government B. Society C. Employees D. Stockholders

Q: (p. 48) According to a survey of over 2000 board of directors, which of these stakeholders were perceived to be most important? A. Stockholders B. Employees C. Customers D. Society

Q: (p. 48) _______ have justifiable reasons for expecting (and often demanding) that the firm satisfy their claims in a responsible manner. A. Board B. Institutions C. Stakeholders D. Top management

Q: (p. 48) A firms claimants are sometimes collectively referred to as A. Stockholders B. Employees C. Stakeholders D. Customers

Q: What are the major trends in Code of Ethics? Explain?