Q&A Hero

Q: When a business affects the life of a member of the surrounding community without meaning to, the company has wielded a. coercive power. b. deliberate power. c. hidden power. d. unintentional power.

Q: Which of the following would be stages of crisis management? (A) Developing a crises team with a mix of representatives from all sectors of the organization to deal with the crisis. (B) Conducting a risk assessment to determine potential crises, monitoring the event to prevent it from becoming a crisis, and planning how to deal with a crisis if it occurs (C) Implementing a plan and communicating to acknowledge or admit to the crisis, state actions you are taking, and stating how you plan to avoid a repeat crisis in the future. (D) Analyzing the organization's effectiveness in managing the crisis, with a focus on doing a better job of preventing and managing future crises. (E) Weeding out employees who caused the disaster.

Q: The most important stakeholders of a business are typically its a. employees. b. government. c. consumers. d. owners.

Q: What are the three phases of issues management? (A) Scanning the environment to identify issues and trends that will affect society. (B) Assuming that last year's issues have been resolved and this year's issues will be similar. (C) Using the same categorization process for identifying issues as your competitors do. (D) Evaluating the impact issues will have on the firm and ranking issues by priority to the firm. (E) Conducting a strategic analysis to develop strategies for dealing with high-priority public affairs issues.

Q: The examination of business and its relationship to society typically focuses on a. big business and highly visible industries. b. all business and all industries. c. small business and highly visible industries. d. none of these.

Q: Which of the following could be considered Public Affairs statements? (A) "Quality is Job 1." (B) "We will not seek an unfair advantage over our competitors." (C) "Save money, live better." (D) "Finger-lickin' good." (E) "Because you're worth it."

Q: "In the long run, those who do not use power in a manner which society considers responsible will tend to lose it" is the description of a. The Iron Law of Oligarchy. b. The Iron Cage of Rationality. c. The Iron Law of Responsibility. d. The Peter Principle.

Q: Which of the following are true about public affairs activities? (A) It is not concerned with stakeholders. (B) It refers to how businesses interact with stakeholders. (C) During PA functions, managers must be ethical, and unethical behavior should be reported through whistleblowing (D) It is concerned with firm stakeholder relationships. (E) Managers usually do not practice ethical behavior when dealing with the public.

Q: The government, consumers, and members of the community are examples of a. stockholders. b. the technological environment. c. external stakeholders. d. primary stakeholders.

Q: Which of the following is not an element of determining the incentives of stakeholders? (A) Legitimacy (B) Power (C) Urgency (D) Age of majority stakeholder (E) Likelihood of stakeholder action

Q: Through a/n __________ process, individuals develop and use critical thinking skills to analyze business issues and make better decisions for their personal and professional lives. (A) strategic analysis (B) default planning (C) probationary (D) identification (E) SWOT

Q: An internal stakeholder is a person or group who a. exist outside the boundaries of the firm. b. is located in the same country in which the firm in located. c. is defined as an "insider" in laws regulating financial markets. d. is "inside" the company, such as employees and owners.

Q: Stakeholders include all of the following groups except a. owners. b. employees. c. customers. d. all of these are stakeholder groups.

Q: What are the 5 Is of strategic analysis, in proper sequence? (A) Issue identification, interaction strategies, interested strategic stakeholders, incentive of stakeholders, information-objectives. (B) Issue identification, interested strategic stakeholders, incentive of stakeholders, information-objectives, interaction strategies. (C) Issue identification, interested strategic stakeholders, information-objectives, integrate market and nonmarket strategies, interaction strategies. (D) Issue identification, incentive of stockholders, interested strategic stakeholders, information-objectives, interaction strategies. (E) None of these is correct.

Q: Which of the following is not true of crisis communication? (A) Often, a company may have only minutes to contain a crisis. (B) With the Internet and cable television, the world often knows about a crisis before some managers and the employees. (C) Managers usually have hours or even days to contain a crisis. (D) it is important to balance the desire to say something right away with the need to get the facts. (E) Company officials must be prepared to issue an initial statement to the media and other key stakeholder groups.

Q: Which of the following is not an element of the social contract? a. laws b. employment contracts c. regulations d. shared understandings

Q: A/n _______is a major unexpected event that has a large negative consequence. (A) crisis (B) strategy (C) failed plan (D) regulation (E) incentive

Q: The set of reciprocal understandings that characterize the relationships between major social institutions is called the a. implied contract. b. unilateral binding accord. c. social contract. d. procedural justice agreement.

Q: The power of stakeholder has risen over the years. (A) True (B) False

Q: Which of the following is not a sphere of power indicated in the text? a. economic b. technological c. political d. intermediate

Q: What is the role of managers?

Q: CEOs such as Virginia Rometty of IBM or Tim Cook of Apple hold which level of power? a. macro b. micro c. individual d. intermediate

Q: Which statement about the nonmarket is not correct? (A) The nonmarket government environment includes the executive, legislative, and judicial branches. (B) Social interest group activists pressure business to meet their special interest. (C) The government creates and enforces the laws, rules, and regulations that firms must abide by when conducting business in the market environment. (D) All of these are correct. (E) The nonmarket society environment includes societal interest groups and suppliers.

Q: The business power wielded by an individual firm is known as a. macro level power. b. intermediate level power. c. micro level power. d. individual level power.

Q: MADD, PETA. And AARP are all considered ________. (A) news media (B) regulators (C) special interest groups (D) taxing entities (E) None of the above

Q: The intermediate level of business power is found in a. corporate headquarters. b. the boards of individual corporations. c. groups of corporations acting in concert. d. medium-sized corporations.

Q: Which statement about the market and nonmarket is not correct? (A) The market environment includes owners, employees, suppliers, customers, and competitors. (B) The nonmarket environment includes interactions with society and government. (C) The nonmarket environment structures (laws and regulations) how business operates in the market environment and the positions of firms in the market, and it creates opportunities for and threats to business. (D) The market environment creates issues of special interest that are addressed in the nonmarket environment. (E) All these statements are correct.

Q: The macro level of business power resides in a. the Federal government. b. the entire corporate system. c. corporate CEOs. d. particular industries.

Q: ________ is the belief that we are owed something just because we are a member of society or a particular group in that society. (A) Social problem recognition (B) Entitlement mentality (C) Swollen expectations (D) Victimization

Q: The levels of power include all of the following except a. the macro level. b. the micro level. c. the institutional level. d. the individual level.

Q: Which definition of business, society and government is not correct? (A) A business is a firm that sells a product for a profit. (B) Society includes interest groups and the communities affected by business. (C) Government includes the executive, legislative, and judicial branches at the local, state, federal, and international levels. (D) None of these statements is correct. (E) All of these statements are correct

Q: The ability to produce an effect or influence a situation is known as a. authority. b. abuse. c. power. d. dictatorship.

Q: Managers need not concern themselves about the interrelationships between the market and nonmarket environments (A) True (B) False

Q: The ____ is a result of the growing numbers of individuals and groups who see themselves as having been victimized by society. a. Rights Movement b. Entitlement Mentality c. Revolution of Rising Expectations d. Victimization philosophy

Q: Nonmarket strategies are more significant to some industries and businesses than others. (A) True (B) False

Q: An entitlement mentality is a. a necessary outgrowth of the welfare system. b. an outgrowth of the revolution of rising expectations. c. the idea that one has to work for what one gets. d. the idea that each citizen owes something to society.

Q: Business has a responsibility to be ethical with its stakeholders. (A) True (B) False

Q: A gap between society's expectations of social conditions and the current social realities is recognized as a. a social problem. b. distributive justice. c. the revolution of rising expectations. d. inevitable reality.

Q: Few large American businesses compete globally. (A) True (B) False

Q: The belief that each succeeding generation should have a higher standard of living than its predecessor and that major institutions should continually improve is known as a. the revolution of rising expectations. b. the iron cage of rationality. c. the iron law of oligarchy. d. the soft bigotry of low expectations.

Q: Movies are a significant source of business criticism because a. corporations are seen as powerful, profit-seeking enterprises that have no redeeming values. b. corporations are depicted as moral. c. corporations represent free enterprise undoomed. d. businesses are not greedy.

Q: DropBox technology cannot be used on smart phones. (A) True (B) False

Q: Internet businesses like eBay and Amazon have revolutionized the way consumers shop. (A) True (B) False

Q: Television raises our level of awareness about business in all of the following ways except a. news programs. b. prime-time programs. c. pay-per-view programs. d. commercials.

Q: The executive branch of government has far more power than either the legislative or the judicial branches. (A) True (B) False

Q: The average level of formal education in the United States is a. rising. b. dropping. c. staying about the same. d. unknown.

Q: The nonmarket government environment includes the political environment as well as the legal environment. (A) True (B) False

Q: Which of the following is not a factor in the social environment that has lead to the current climate of criticism of business? a. affluence and education b. the revolution of rising expectations c. an entitlement mentality d. all of these choices are factors leading to criticism of business

Q: Unions are for-profit governmental organizations that represent the interests of their members and workers. (A) True (B) False

Q: Major institutions in a pluralistic, special-interest society will inevitably receive a. praise. b. special favors. c. analysis and criticism. d. tax advantages.

Q: Sometimes competitors help each other. (A) True (B) False

Q: Because of the sheer member, and specificity of special interest groups, the groups often a. collaborate with each other to achieve common goals. b. sabotage each other's efforts to attain their goals. c. work at cross-purposes. d. collude to see that their common interests are emphasized.

Q: Special interest groups can affect business negatively as well as positively. (A) True (B) False

Q: Carrying the idea of a pluralistic society to an extreme leads to a. anarchy. b. totalitarian government. c. a special-interest society. d. a free market economy.

Q: Government and society can help business. (A) True (B) False

Q: The sheer numbers of relationships that business has with other segments of society indicate the ____ of its social environment. a. simplicity b. size c. divisiveness d. complexity

Q: Which of the following would include the natural environment of business? (A) A software company offering free software to anybody who subscribes to its service. (B) A company who is concerned with the success of its products in Malaysia. (C) A company concerned with the legal implications of electronic file sharing in foreign countries. (D) A car company voluntarily painting its cars with environmentally-friendly paint. (E) McDonald's serving only sandwiches and burgers without beef.

Q: Which of the following is not a weakness of pluralism? a. prevention of concentrations of power b. pursuit of self-interest c. overlapping goals, causing confusion about which groups best serve particular interests d. emphasis on conflict

Q: Which statement about the environment and balance of power is not correct? (A) The political environment includes the government legislative, executive, and judicial branches. (B) The power of the president is checked by Congress as it must approve his or her cabinet, judicial appointees, and budget. (C) Congress has power over regulators. (D) The power of Congress is checked by the president, as he or she can veto its bills. (E) The courts can change the laws and regulations made by Congress and executive-branch regulators.

Q: Strengths of pluralism include all of the following except a. pursuit of self-interest. b. prevention of concentrations of power. c. a built-in set of checks and balances. d. maximization of freedom of expression.

Q: What is the role of business?

Q: Decentralization and diversity of power concentrations leads to a. anarchy. b. a totalitarian society. c. a pluralistic society. d. democracy.

Q: List and explain the three branches of government.

Q: Technology-based advancements and progress in the applied sciences that help achieve a practical purpose is part of a firm's a. social environment. b. political environment. c. economic environment. d. technological environment.

Q: What is the difference between a customer and a consumer?

Q: The processes by which laws are enacted and government officials are elected are part of the a. social environment. b. economic environment. c. political environment. d. technological environment.

Q: What are factors contributing to special interest groups and social problems?

Q: Gross national product, inflation, interest rates, and unemployment rates are included in a firm's a. social environment. b. economic environment. c. political environment. d. technological environment.

Q: Describe the difference between capitalism, pluralism, and democracy.

Q: Which of the following is/are included in the applied ethical approach? (A) Morality (B) Ethics (C) Strategies (D) Honesty (E) Integrity

Q: The demographics, lifestyles, and social values of a society determine the firm's a. social environment. b. economic environment. c. political environment. d. technological environment.

Q: To be successful, what must businesses do? (A) Take advantage of market opportunities. (B) Make a business plan but not strategies to implement it. (C) Avoid threats created by the nonmarket environment. (D) Pay little attention to the nonmarket environment. (E) Ignore competition.

Q: Segments of business's macroenvironment include all of the following except a. the social environment. b. the natural environment. c. the economic environment. d. the political environment.

Q: Which of the following branches of government does the legislative branch include? (A) The Senate (B) The House of Representatives (C) Regulatory agencies. (D) The President's office (E) The Supreme Court

Q: A purposeful aggregation of people who represent a common cause or share common beliefs is called a(n) a. special interest group. b. general interest group. c. interest group. d. clique.

Q: A community, nation, or broad grouping of people having common traditions, values, institutions, and collective activities and interests is a a. society. b. culture. c. population. d. network.

Q: Select categories of the nonmarket government environment. (A) Owners (B) Political environment (C) Suppliers (D) Legal environment (E) Other companies

Q: Which of the following characteristics of an industry does not add to the creation of visible and controversial social problems? a. intense advertising b. creation of pollution c. geographic location d. products that affect health

Q: What would be considered as nonmarket society environment elements? (A) Societal interest groups (B) Employees (C) News media (D) Managers (E) Communities

Q: Which of the following are stakeholders in a business as identified by the textbook? (A) Owners (B) Employees (C) Politicians (D) Distributors (E) Consumers who don't buy a company's product