Chapter 1
Which of the following characterizes advocacy groups?
A. They pursue issues because of the benefits that accrue to their members.
B. They monitor the activities of firms and call those activities to the attention of the media, government and the public.
C. They represent the interests of individuals, such as those affected by pollution.
D. They take direct action against firms to force them to change their policies or can appeal to the public for support.
Answer:
Under the new theory of _______________, firms could be held liable if their stock prices fell significantly when the firms\’ projection of future earnings had been favorable.
A. fraud on the market
B. fraud on the nonmarket
C. the common factor
D. collective deception
Answer:
Which of the following is an example of a global institution?
A. Department of Homeland Security
B. Environmental Protection Agency
C. Mercosur
D. Kyoto Treaty
Answer:
Which of the following are government institutions?
A. labor unions.
B. regulatory agencies
C. news agencies
D. for-profit institutions
Answer:
_____________ is/are defined as the rules of the game in a society that shape human interactions and provide arenas in which interests seek to influence the outcomes on issues.
A. Institutions
B. Individualism
C. Collectivism
D. Issue identification
Answer:
_____________ are the basic unit of analysis and the focus on nonmarket action.
A. Interests
B. Institutions
C. Issues
D. Information
Answer:
Which of the following steps follows the identification of the nonmarket issue in the nonmarket issue life cycle?
A. enforcement
B. interest group formation
C. administration
D. legislation
Answer:
The market environment of business includes:
A. social, political, and legal arrangements that structure interactions in conjunction with markets and contracts.
B. interactions between firms, suppliers, and customers that are governed by markets and contracts.
C. interactions between the firm and individuals, and interest groups that are intermediated by private institutions.
D. interactions between the firm and government entities, and the public that are intermediated by public institutions.
Answer:
Which of the following characterizes the competition in a nonmarket environment?
A. Firms compete through their market or competitive strategies.
B. The competitive strategies are intermediated by markets.
C. Public pressure leads to competition involving individuals, activists, interest groups and firms.
D. The nonmarket environment neither changes not the issues on a firm\’s nonmarket agenda evolve.
Answer:
Special interest groups ____________:
A. pursue issues because of the benefits that accrue to their members.
B. monitor the activities of firms and call those activities to the attention of the media, government, and the public.
C. represent the interests of individuals, such as those affected by pollution.
D. take direct action against firms to force them to change their policies or can appeal to the public for support.
Answer: