Accounting
Anthropology
Archaeology
Art History
Banking
Biology & Life Science
Business
Business Communication
Business Development
Business Ethics
Business Law
Chemistry
Communication
Computer Science
Counseling
Criminal Law
Curriculum & Instruction
Design
Earth Science
Economic
Education
Engineering
Finance
History & Theory
Humanities
Human Resource
International Business
Investments & Securities
Journalism
Law
Management
Marketing
Medicine
Medicine & Health Science
Nursing
Philosophy
Physic
Psychology
Real Estate
Science
Social Science
Sociology
Special Education
Speech
Visual Arts
Economic
Q:
The majority of effort and money invested in technological innovation comes from non-industrial firms.
Q:
Which of the following is true with regard to ethics?
a) Ethics is a systematic approach to moral judgments based on reason, analysis, synthesis, and reflection.
b) Issues involving direct mutual advantage require rigorous ethics analysis.
c) Ethics is based on political correctness and is mandated by the government or other authoritative bodies.
d) Good ethics is always profitable.
Q:
Most innovative ideas do not become successful new products.
Q:
Ethics is the discipline concerned with judgments based on ________ and the reasoning therefrom.
a) political correctness
b) constitutional provisions
c) moral standards
d) cultural taboos
Q:
Firms that charge headlong into new product development usually have short development cycles.
Q:
If a business discharges untreated chemical waste into local water bodies, it imposes a negative externality on the community members.
Q:
Confucianism is a consequentialist system of ethics that defines the good in terms
of human well-being and evaluates that well-being in terms of individuals preferences.
Q:
Technological innovation results in complete eradication of negative externalities.
Q:
The law of torts is an institution that is inconsistent with utilitarianism.
Q:
Externalities are costs that are borne by individuals other than those responsible for creating them.
Q:
Cost-benefit analysis focuses on the costs required to reduce risks and compares the alternative in question with other alternatives.
Q:
GDP does not relate directly to the amount of goods consumers can purchase.
Q:
Utilitarianism is regularly used to evaluate public policies by measuring benefits and costs in monetary units.
Q:
Utilitarianism is criticized for its focus solely on human well-being.
Q:
Technological innovation decreases the amount of output achievable from a given quantity of labor and capital.
Q:
Utilitarianism provides a basis for evaluating intrinsic rights.
Q:
Innovation and new technologies have led to longer product life cycles and lowered product obsolescence.
Q:
Instrumental rights have moral standing independent of the consequences they yield.
Q:
Globalization of markets has reduced the importance of innovation.
Q:
Flexible manufacturing technologies have increased the importance of production economies of scale.
Q:
Act utilitarianism focuses on a general rule of behavior to be followed by all individuals in all similar situations.
Q:
Investing in process innovation helps firms lower their costs.
Q:
The Calabresi and Melamed principles provide a framework for reasoning about the assignment of duty.
Q:
Utilitarianism does not take altruism into account.
Q:
Utilitarianism gives equal weight to the utilities of all persons.
Q:
When markets are competitive and institutions are in place that align self-interest with societal well-being, the maximization of profit by a firm results in the greatest aggregate societal well-being.
Q:
The institutions of private property and markets provide one means of alignment, since a voluntary transaction, such as a supply contract between two firms, makes both the buyer and seller better off.
Q:
Utilitarianism coincides with self-interest only when societal consequences are prioritized over private consequences.
Q:
Utilitarianism focuses on the numbers of people who are better or worse off because of an action.
Q:
The standard of human well-being and the need to consider the consequences for all persons correspond to fundamental ethical intuitions.
Q:
Aggregation is required because an action may make some individuals better off and others worse off.
Q:
Utilitarianism is better understood as a particular form of a consequentialist moral philosophy.
Q:
Moral philosophy concentrates on how the state should grant and limit liberties, and ensure justice.
Q:
Casuistry is principled reasoning and is distinguished from ethics, which is an approach to moral practice that seeks to balance competing considerations.
Q:
A granted proposition is one that has been established either by ethical consensus or by an authoritative body such as government.
Q:
Ethics involves an inquiry into whether a proposition has legal status.
Q:
Business ethics pertains to situations in which individuals are in an organizational position and act as agents of the company and its owners.
Q:
The focus of ethics is primarily on issues involving direct mutual advantage.
Q:
Ethics is an important foundation for the positive analysis of nonmarket issues.
Q:
Even Friedmans dictum to maximize profits is subject to the limits of the law and ethical custom, both of which leave a gray area between what is clearly responsible and what is clearly irresponsible. Under such circumstances, where should managers obtain guidance from?
Q:
Empirical studies provide a picture of the landscape in which firms operate, but it does not provide a roadmap for individuals firms. What is the challenge faced by individual firms?
Q:
Can corporate social performance (CSP) be rewarded? If yes, how? If no, why?
Q:
Define corporate social performance (CSP).
Q:
Corporate social responsibility focuses on the responsibility of a firm for social performance. Where does that responsibility and duty originate?
Q:
________ means that management and the board have a substantial range of discretion in deciding the extent of corporate social responsibility.
a) The business judgment rule
b) The duty of loyalty
c) The duty of care
d) Market capitalism
Q:
Which of the following is true with regard to boards of directors?
a) The courts judge the discharge of the obligations of directors according to a civil law standard referred to as the duty of care.
b) Under the business judgment rule, actions taken by the board are generally subject to judicial review.
c) Board members have legal obligations that generally fall into categories referred to as the duty of loyalty and the duty of care.
d) Directors cannot be held liable even when they do not exercise due care.
Q:
A firm could be a soft target for social pressure because ________.
a) it has, in the past, been largely unresponsive to social pressure
b) it has, in the past, formed strategic alliance with several peak organizations
c) it is financially strong
d) it is vulnerable to brand or reputation damage
Q:
Which of the following is true with regard to social pressure as a motivator of corporate social performance (CSP)?
a) Social pressure cannot affect the financial performance of a firm directly.
b) Social pressure is rarely targeted to individual firms or industries.
c) Responsive CSP could relieve social pressure that affects financial performance.
d) The presence of social pressure discourages firms to conduct social activities.
Q:
The framework for corporate social performance (CSP) begins with ________.
a) managers who can strategically manipulate market forces to maximize shareholder value
b) firms which have demonstrated consistent growth over a period of time
c) individuals who can allocate their resources among consumption goods, investments in the shares of firms, and direct contributions to social causes
d) firms which have a high rate of attrition
Q:
Which of the following social activities can be referred to as corporate social performance?
a) social activities that involve the public redistribution of private property
b) social activities that increase the shareholder value
c) social activities that increase sales and revenue
d) social activities that involve the private provision of public goods or private redistribution
Q:
Which of the following is an example of morally motivated social performance?
a) An international retailer that sells diamond jewelry strengthened its sourcing and auditing policies after allegations that diamonds were being imported from conflict-ridden countries in Africa.
b) A leading cosmetic company that supports animal rights presented a petition to the European Union against the use of whale oil in products to raise awareness about the issue.
c) An infant formula manufacturer stopped exporting breast milk substitute baby food to developing countries after a boycott campaign that raised awareness of the products health hazards.
d) After a worldwide campaign against obesity, a leading fast food chain introduced healthy salads and options to buy smaller portions.
Q:
Which of the following is true with regard to corporate social performance?
a) Responsive corporate social performance increases social pressure that affects financial performance.
b) Responsive corporate social performance is always rewarded by customers.
c) Moral considerations do not motivate corporate social performance.
d) Corporate social performance need not be motivated by moral considerations but instead could be strategic or a response to the social pressure a firm faces.
Q:
Which of the following is true of the difference between the Business Roundtables view and Friedmans theory with regard to the conceptions of social responsibility?
a) In contrast to the Roundtable's basic view that does not admit constituencies, Friedman's theory identifies seven constituencies: customers, employees, financiers, suppliers, communities, society at large, and shareholders.
b) The Roundtable views shareholders as principals, whereas Friedman views them as providers of capital risk.
c) In contrast to the Roundtables perspective, the principals in Friedman's theory are managers.
d) The objective of a corporation is not as clearly identified in the Roundtable statement as it is in Friedmans theory.
Q:
The Business Roundtable view of a corporation considers ________.
a) managers the agents
b) suppliers as the providers of revenue for the firm
c) a corporation as an entity whose existence depends on societys approval
d) shareholders as principals
Q:
A stakeholder relationship centers on ________.
a) an exchange
b) rapport with peak organizations
c) voting rights
d) a niche market
Q:
Which of the following allows the accumulation of resources through retained earnings and their allocation within the firm without having to incur the transactions costs of raising funds in the capital markets?
a) market capitalism
b) a welfare economy
c) managerial capitalism
d) cooperative socialism
Q:
Which of the following defines market capitalism?
a) the reliance on markets to increase the aggregate social welfare
b) the reliance on markets to direct the allocation of resources
c) the reliance on managers to direct market growth
d) the reliance on managers to increase market efficiencies
Q:
Which of the following is true of the relationship between social responsibility and compliance with laws?
a) Criminal prosecution can occur under antitrust laws, securities and exchange laws, certain environmental laws, and many others.
b) Criminal law is not applicable to either firms or their managers.
c) Violations in business rarely lead to more stringent laws.
d) Individual managers and corporations are not liable for damages under statutory laws.
Q:
How can socially responsible mutual funds make takeover of firms less likely?
a) by discouraging diversification of firms and businesses that engage in social activities
b) by discouraging innovation in bleeding-edge technologies
c) by decreasing service convenience for competing firms that engage in social activities
d) by raising the share price of firms that engage in social activities
Q:
Which of the following statements is true from Friedmans perspective?
a) The economic justification for Friedmans position is based on the premise that social causes cannot be served by firms, and citizens can never obtain complete satisfaction from corporate giving.
b) Citizens cannot obtain satisfaction from their personal giving.
c) The economic justification for Friedmans position is based on an environment in which citizens can both invest their funds in the capital markets and make personal gifts to social causes.
d) Friedmans objection is to CSR that is anticipated since the shareholders bear the cost.
Q:
From Friedmans perspective, a conception of corporate social responsibility (CSR) that differs from shareholder value maximization must be costly and can have only two interpretationseither a political process is to be used to make decisions or ________.
a) managers are to act as agents rather than as principals
b) managers are to act as principals rather than as agents
c) shareholders are to act as principals rather than as agents
d) consumers are to act as principals rather than as agents
Q:
Which of the following is true of Friedmans conception of a corporation?
a) The corporation engages in involuntary transactions with both resource
providers and customers.
b) In an inefficient capital market, shareholders will unanimously prefer that the firm be operated to maximize its market value.
c) The corporation is managed by shareholders who act as agents.
d) A corporation is a voluntary association of individuals who have joined together for a mutual purpose.
Q:
Economic theory identifies the ________ as the objective that provides the strongest incentives for efficiency.
a) maximization of social well-being
b) perpetuation of corporate ethics
c) maximization of shareholder value
d) consideration of morality
Q:
Which of the following is true of Adam Smiths view of markets and resource allocation?
a) Markets allow decentralized decision making.
b) Markets discourage innovation.
c) Efficient markets depend on the goodwill of individuals.
d) Markets are usually inefficient in allocating scarce resources to the society.
Q:
According to Adam Smith, the surest way to achieve societal well-being was to ________.
a) facilitate centralized decision making and allow the government to decide on behalf of individuals
b) place resources in the hands of individuals and allow them to transact in markets
c) encourage public ownership of resources
d) rely on goodwill rather than profit incentives
Q:
Milton Friedman argued that the social responsibility of business is to ________
a) reduce the trust gap between global companies and NGOs
b) identify duties based on conceptions of well-being, rights, and justice
c) minimize shareholder value
d) maximize profits
Q:
Which of the following is true with regard to the trust gap between firms and the public in general?
a) The greater the size of the firm, the greater the trust accorded to it.
b) The public trust in large firms is low, and criticisms of business are often viewed with a degree of credibility that is not accorded to the communication by firms.
c) The apparent lack of trust in NGOs stands in stark contrast to the trust in global companies.
d) The public trust in large firms is higher than that in smaller firms because large firms are less vulnerable to social pressures.
Q:
Social responsibility focuses less on pressures and more on normative principles that identify duties based on ________.
a) conceptions of well-being
b) conceptions of nonmarket challenges
c) maximizing shareholder value
d) maximizing profits
Q:
The extent of corporate social responsibility (CSR) activities by firms depends on ________.
a) the number of vacant job positions in a firm
b) the role of the firms business in society
c) the financial profits of the past five years
d) the extent of compliance with national laws and regulations
Q:
Investors prefer managerial capitalism to market capitalism.
Q:
The market for control disciplines management and directors to serve shareholder interests through mergers, acquisitions, hostile takeovers, proxy contests, and depressed market valuations.
Q:
The duty of loyalty supports both Friedmans position and the strategic use of corporate social responsibility (CSR).
Q:
The courts judge the discharge of the obligations of directors according to a civil law standard referred to as the duty of care rule.
Q:
The duty of care pertains to conflicts of interest and requires that directors serve the interests of the corporation and its shareholders.
Q:
Social performance is not only self-assessed by firms but is also assessed through external monitoring and evaluation by activist and other groups.
Q:
For consumer industries, CFP is negatively correlated with CSP, whereas for industrial industries it is positively correlated with CSP.
Q:
The results for the corporate social performance (CSP) equation provide no support for the perquisites hypothesis and strong support for the responsive CSP hypothesis. That is, better CFP results in lower CSP.
Q:
Firms that are financially weaker face lesser social pressure, which is inconsistent with the soft-target hypothesis.
Q:
Social activities could be undertaken as a perquisite for management, and if so, social performance should be greater the greater are the slack resources available to managers.
Q:
Social pressure results from private and public politics and is directed to selected firms and industries.