A. provides a company with a more positive overall reputation.
B. has opened doors in local communities. C. has enhanced the company's reputation with consumers.
D. has resulted in cost savings to firms.
E. All of these.
E. All of these.
According to Kohlberg's levels of moral development, the conventional level is characterized by considerations of society's laws and norms.
A. True
B. False
A. True
According to the utilitarian approach, legal or moral claim on company resources can stand for
A. power.
B. legitimacy.
C. urgency.
D. utility.
E. stability.
B. legitimacy.
According to Cavanagh, using the ________ criterion, to determine if padding an expense account is ethical or not one would ask if it optimizes the satisfactions of all stakeholders.
A. morality
B. utility
C. rights
D. justice
E. relativism
B. utility
According to Kohlberg, the second level of moral development, characterized by considerations of society's laws and norms, is called
A. principled.
B. conventional.
C. essential.
D. preconventional.
E. fundamental.
B. conventional.
All of the following are considered secondary stakeholders EXCEPT
A. governments.
B. competitors.
C. suppliers.
D. trade associations.
E. activists.
C. suppliers.
"Let the buyer beware" is a traditional saying in free market capitalism.
A true
B False
A true
The principle which proposes that punishment should be determined on a proportional basis to the "crime" is called
A. compensatory justice. B. retributive justice.
C. relevant justice.
D. distributive justice.
E. punitive justice.
B. retributive justice.
Which of the following is one of the most common reasons given by surveyed executives for bending the rules to attain their objectives?
A. organizational performance required it B. rules were ambiguous or out of date
C. everyone does it
D. pressure from others
E. All of these
E. All of these
Friedman's position on social responsibility
A. proposes that a lack of social responsibility results in increased government regulations.
B. appears to be losing traction with business executives.
C. suggests that a lack of social responsibility reduces a firm's efficiency.
D. explains why firms are using their socially responsibility actions for competitive advantage.
E. mirrors Carroll's position.
B. appears to be losing traction with business executives.
Which one of the following is NOT one of the arguments against social responsibility as used by economist Milton Friedman?
A. Spending money for social responsibility is spending the stockholder's money for a general social interest. B. Businesses can actually do very little in terms of social responsibility.
C. Spending money on social responsibility is acting from motives other than economic and may, in the long-run, cause harm to the very society the firm is trying to help.
D. There is one and only one social responsibility of business -- to use its resources and engage in activities designed to increase its profits so long as it stays within the rules of the game.
E. Through taking on the burden of social costs, the organization becomes less efficient, causing price increases or postponement of growth.
B. Businesses can actually do very little in terms of social responsibility.
Primary stakeholders have a direct connection with the corporation and have sufficient bargaining to directly affect corporate activities.
A. True
B. False
A. True
The Golden Rule is the essence of one of Immanuel Kant's approaches to resolving ethical dilemmas.
A. True
B. False
A. True
A study concerning social responsibility indicates that socially-responsible firms are more likely to be welcomed into another country.
A. True
B. False
A. True
Law is defined as
A. formal codes that permit or forbid certain behaviors.
Which of the following statements is true concerning secondary stakeholders?
A. Secondary stakeholders are those who have only an indirect stake in the corporation, but who are affected by corporate activities. B. Secondary stakeholders usually include non-governmental organizations (like Greenpeace) and trade associations.
C. Because the corporation's relationship with each of these stakeholders is usually not covered by any written or verbal agreement, there is room for misunderstanding.
D. Aside from competitors, secondary stakeholders are not usually monitored by the corporation in any systematic fashion.
E. All of these
E. All of these
Role relativism is based on the belief that
A. morality is relative to a particular culture. B. all moral decisions are deeply personal and each person should be allowed to interpret situations and act on his own moral values
C. social roles carry with them certain obligations.
D. morality is simply a matter of following the norms of an individual's peer group.
E. a decision is legitimate if it is common practice.
C. social roles carry with them certain obligations.
People who are similar on relevant dimensions such as job seniority should be treated in the same way, is an example of
A. compensatory justice.
B. retributive justice.
C. relevant justice. D. distributive justice.
E. punitive justice.
D. distributive justice.
According to Carroll, the responsibility that management of a business organization assumes which are purely voluntary obligations are
A. legal responsibilities.
B. ethical responsibilities.
C. financial responsibilities.
D. economic responsibilities. E. discretionary responsibilities.
E. discretionary responsibilities.
There is no truth to the comment that "business ethics" is an oxymoron.
A. True B. False
A. True
Being known as a socially responsible firm may provide a company with social capital, the goodwill of key stakeholders, that can be used for competitive advantage.
A. True
B. False
A. True
All of the following are one of the four types of moral relativism EXCEPT
A. naive relativism. B. principled relativism.
C. role relativism.
D. social group relativism.
E. cultural relativism.
B. principled relativism.
Specific changes reported by CEOs in a survey by the Business Roundtable Institute for Corporate Ethics included all of the following EXCEPT
A. enhanced internal reporting and communications.
B. ethics hotlines.
C. improved compliance procedures.
D. decreased number of whistleblowers.
E. greater oversight by the board of directors.
D. decreased number of whistleblowers.
As societal values evolve, it is likely that the _________ responsibilities of today may become the _________ responsibilities to tomorrow.
A. economic; ethical.
B. legal; ethical.
C. discretionary; ethical.
D. discretionary; economic.
E. legal; discretionary.
C. discretionary; ethical.
The principle which argues that wrongs should be compensated in proportion to the offense suffered is called
D. distributive justice.
E. punitive justice.
A. compensatory justice.
Industryanalysis was popularized by Michael Porter.
A. True
B. False
A. True
When strategic managers have a willingness to reject unfamiliar as well as negative information it is referred to as
A. strategic paralysis.
B. corporate inertia.
C. management indifference.
D. strategic myopia.
E. Corporate apathy
D. strategic myopia.
The technique recommended by the text to organize an analysis of external strategic factors is called
A. IFAS.
B. EFAS.
C. SFAS.
D. S.W.O.T.
E. the issues priority matrix. 0%
B. EFAS.
One of the possible barriers to entry is product differentiation.
A. True
B. False
A. True
The task environment includes the economic, technological, political-legal, and sociocultural forces.
A. True
B. False
B. False
Which of the following is NOT descriptive of external environmental scanning?
A. Used as a tool to ensure a corporation's long-term health.
B. Used to monitor, evaluate, and disseminate information from the external environment to key people within the corporation.
C. Used to identify opportunities and threats.
D. It is a tool that corporations use to avoid strategic surprise.
E. Used to identify strengths and weaknesses.
E. Used to identify strengths and weaknesses.
All of the following are technological breakthroughs already having a significant impact on many industries EXCEPT
C. growing health consciousness.
The origin of competitive advantage lies in the ability to identify and respond to environmental change well in advance of competition.
A. True
B. False
A. True
Reactors are companies with a limited product line that focus on improving the efficiency of their existing operations.
A. True
B. False
B. False
Which of the following is an example of a global industry?
A. retailing
B. banking
C. tires
D. insurance
E. health care
C. tires
The most widely used forecasting technique used after trend extrapolation is
A. statistical modeling.
B. simulations.
C. scenario-writing.
D. expert opinion.
E. brainstorming.
C. scenario-writing
A study of nearly 500 of the world's largest corporations indicated which of the following to be the most widely practiced form of forecasting?
A. statistical modeling
B. scenario-writing
C. delphi technique
D. brainstorming
E. trend extrapolation
E. trend extrapolation
One of the demographic variables in the societal environment is the changing household composition.
A. True
B. False
A. True
A company that operates in at least two different product-market areas in which one product is stable and the other one is variable, reflects which strategic orientation?
A. initiators
B. reactors
C. analyzers
D. prospectors
E. defenders
C. analyzers
Competitive intelligence is an informal program of gathering information on a company's competitors.
A. True
B. False
B. False
In addition to Porter's Five Forces, another force added in the text is.
A. bargaining power of unions.
B. other stakeholders.
C. threat of prospects.
D. threat of shareholders.
E. bargaining strength of employees.
B. other stakeholders.
A consolidated industry is dominated by a few large firms, each of which struggles to differentiate its products from the competition.
A. True
B. False
A. True
Those variables that can affect significantly the overall competitive positions of companies within any particular industry are known as
A. external strategic factors.
B. internal strategic factors.
C. matrix factors. D. key success factors.
E. industry scenario.
D. key success factors.
According to Michael Porter, a high force can be regarded as threat because it is likely to reduce profits.
A. True
B. False
A. True
Political-legal forces regulate the values, mores, and customs of society.
A. True
B. False
B. False
Today's organizations must scan the natural environment for factors that might previously have been taken for granted.
A. True
B. False
A. True
What are the key environmental trends that are judged to have a medium to high probability of occurrence and a medium to high probability of impact on the corporation
A. external strategic factors
The transferring of profits from a foreign subsidiary to a corporation's headquarters is known as repatriation of profits.
A. True B. False
A. True
Which environment was generally perceived by business people to be a given until the20th century?
A. the task environment B. the natural environment
C. the industry
D. the societal environment
E. the external environment
B. the natural environment
A sugar company that is worried that consumers may buy artificial sweetener instead of sugar is concerned about the
A. threat of new entrants.
B. rivalry among existing firms.
C. threat of substitute products.
D. bargaining power of suppliers.
E. bargaining power of buyers.
