Firms have more control over their future in their nonmarket environment than they
have in the markets in which they operate.
Answer:
Rights established by political choice do not reflect moral principles.
Answer:
Even when there are advantageous trades that could be made, market imperfections can
arise when people have different information at the time they act.
Answer:
The Single European Act increased the political power of the governments of the
member states relative to the power of the EU institutions.
Answer:
Identifying relevant interest groups and activist organizations in a company’s market
and nonmarket areas is an important part of addressing an activist environment.
Answer:
The competitive theory of international trade is based on the losses from trade.
Answer:
The size of the interest group determines the demand for nonmarket action.
Answer:
Trade secret protection can never be perpetual, and the secrets have to be registered in
order to ensure their protection.
Answer:
Activists target individuals in both their personal and professional roles.
Answer:
Regulation is rarely used for public purposes or to accomplish fairness goals as it
requires long term policies.
Answer:
According to the Zhongyong, the relationship between an individual and his/her foe is
one of the “Five Relationships” that must be perfected before social harmony is
achieved.
Answer:
Constitutions and laws grant rights to individuals and organizations to pursue their
interests and to protect those interests from the actions of others.
Answer:
Although nonmarket strategies focus on the initial institutional arena, the subsequent
delegation to administrative or regulatory agencies is a public process.
Answer:
Transparency International’s Corruption Perceptions Index (CPI) pertains to the
corruption in a country or the demand side of corruption.
Answer:
In the short run, the subsidies increased the budget deficit.
Answer:
The first component of the control of an externality in a tradable permits system
involves reflecting in the prices of goods and services, the costs of abatement and the
social costs of the harm from the remaining pollution.
Answer:
The benefits from nonmarket action are higher when there are other means of
generating them.
Answer:
There are many principles for effective lobbying, including shading the facts if it is in
the firm’s best interest.
Answer:
Constituency connection, campaign contributions, or a reputation for providing reliable
information are nonmarket assets.
Answer:
In addition to providing guidance to managers and sales representatives, company
policies also establish a basis for a response when a government official or a customer
demands a payment.
Answer:
The truth defense is uniformly accepted in all states of the U.S.
Answer:
Utilitarianism is regularly used to evaluate public policies by measuring benefits and
costs in monetary units.
Answer:
The standard for a defamation case involving a public figure is the New York Times v.
Sullivan defamation case.
Answer:
Regulation is not always intended to correct market imperfections but instead can be the
result of political forces that serve objectives other than economic efficiency.
Answer:
Fines cannot be imposed in civil cases except to compensate the government for actual
damages when it is a purchaser of goods and services.
Answer:
The European Commission initiates legislation in the form of drafts that are circulated
for comments before the legislative process begins.
Answer:
Solar power producers and their suppliers were well organized.
Answer:
The nonmarket issue life cycle is a theory that relates the stage of development of an
issue to its impact on a firm.
Answer:
Firms can undertake corporate social performance (CSP) because of social norms or
audience effects.
Answer:
Rights and entitlements do not evolve over time despite changes in preferences and
demography.
Answer:
Congressional members’ staffs are usually ignored in the lobbying effort because they
have little influence on their bosses.
Answer:
To keep the benefits from the subsidization in India, the Ministry of New and
Renewable Energy issued rules that banned the importation of solar panels.
Answer:
The market for control disciplines management and directors to serve shareholder
interests through mergers, acquisitions, hostile takeovers, proxy contests, and depressed
market valuations.
Answer:
If the proposer earns the endowment rather than it being a windfall provided by the
experimenter, self-interested behavior is much more prevalent.
Answer:
Kyoto mechanisms referred to credits bought by countries to ________.
a) help finance projects in developing nations that would encourage the usage of coal
and oil
b) help reduce the rate of unemployment in developing countries
c) help finance projects in developing nations that would reduce greenhouse gases
d) help developing nations diversify their businesses
Answer:
Why was the creation of the Lokpal a body with powers to investigate and bring cases
against government corruption controversial?
a) Such an organization would be outside the usual democratic checks in India.
b) A body independent of government-supervision would be inefficient.
c) Private organizations have higher levels of corruption than the government.
d) Amateur bodies lack the expertise to identify and handle corruption.
Answer:
The framework for the application of utilitarianism begins with the identification of
________.
a) the facts of the situation and the moral concerns
b) the set of consequences for all persons and organizations affected
c) the alternative rules of behavior and actions
d) the social costs and social benefits
Answer:
In the late 1990s the Basel Committee had lowered capital requirements in the
________ agreement, and after the financial crisis the focus in ________ was on raising
capital requirements.
a) Basel I; Basel II
b) Basel II; Basel III
c) Basel III; Basel IV
d) Basel IV; Basel V
Answer:
Demand-side subsidies include ________.
a) tax credits for households to install solar panels on rooftops
b) electric utilities for smart grid infrastructure
b) high feed-in tariffs for power producers
c) loan guarantees to solar panel producers
Answer:
The demand for nonmarket action is derived from the distributive consequences of an
alternative. Which of the following measures the distributive consequences for
consumers?
a) Prices, qualities, and availability of goods and services
b) Jobs and wages
c) Sales and profits
d) Market value
Answer:
Article VI of the GATT ________.
a) allows for temporary safeguard relief from imports
b) allows exceptions for balance of payments problems of developing countries
c) covers antidumping and countervailing duties
d) sets a framework for the elimination of quantitative restrictions on trade
Answer:
Which of the following is an emerging market country?
a) Australia
b) Canada
c) China
d) United States of America
Answer:
It is more difficult to develop trust and reciprocity with stakeholders that ________.
a) have regular economic transactions with the firm
b) operate in the same region as the firm
c) are members of peak organizations
d) have only irregular interactions with the firm
Answer:
________ is more relevant when lobbying executive branch agencies.
a) Technical information
b) Political information
c) Soft information
d) Campaign contribution
Answer:
Which of the following statements is true from Friedman’s perspective?
a) The economic justification for Friedman’s 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 Friedman’s 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) Friedman’s objection is to CSR that is anticipated since the shareholders bear the
cost.
Answer:
Which of the following scenarios represents resolution in crisis management?
a) government shuts an emission management company
b) a media report publishes malpractices in a company
c) company officials are informed about wide-spread defaults by employees in certain
branches
d) company officials issue a country-wide recall of computer screens dispatched in the
last quarter.
Answer:
Which of the following is the last step of the three-component approach to managing
policy risk?
a) have a structure analogous to that of the intelligence community that can provide
information and assessments.
b) understand the preferences of the actors in the market and nonmarket environments
c) provide a framework for identifying preferences and collecting information
d) influence the risk through collective action and coalitions
Answer:
The ________ has the authority to overturn decisions that conflict with the EU treaties.
a) European Commission
b) Court of Justice
c) Council of Ministers
d) European Parliament
Answer:
Vertical practices subject to antitrust scrutiny involves ________.
a) resale price maintenance
b) predatory pricing
c) monopolization
d) allocation of customers
Answer:
Private orderings are sustained by the adherence to ________.
a) the Constitution
b) legal sanctions
c) statutes
d) norms
Answer:
Analyze the market opportunities of India. Use examples to illustrate your analysis.
Answer:
Which of the following characterizes nonmarket strategies?
a) They are less important when opportunities are controlled by government.
b) They are important when opportunities are controlled by markets.
c) They are less important when protests, boycotts, and public criticism are more
intense.
d) They are decreasingly important due to issues such as privacy and protection of IP.
Answer:
The appointment of the members of the board of governors of the Federal Reserve is
confirmed by the________.
a) president
b) Senate
c) chairman of the Federal reserve
d) secretary of state
Answer:
Which of the following situations reflects a nonpecuniary externality?
a) A chain of retail stores opens in an area which increases the demand and price of
labor.
b) The sudden steep rise in oil prices lead to the enactment of a complex regulatory
system which instead stimulates the demand for oil.
c) Toxic waste from a chemical manufacturing firm pollutes the water supply for a meat
packaging industry in the area.
d) Toxic waste from a chemical manufacturing firm pollutes the water supply in the
area which leads to a steep fall in real estate prices in the area.
Answer:
Even if the interests of a firm and the government officeholder are aligned, lobbying
will be ineffective when the information provided is soft and not backed by conclusive
data.
Answer:
________ is determined by the diverse interests, viewpoints, and preferences of the
individuals in a society.
a) Ethnic diversity
b) Corporate social responsibility
c) Public sentiment
d) Public relations
Answer:
According to the audience interest/societal significance continuum, which of the
following would get the least coverage with factual treatment?
a) issues on potential health risks
b) issues on sports
c) issues on economic deregulation
d) issues on weather
Answer:
Much of the growth in the Indian economy has been driven by ________.
a) domestic entrepreneurs
b) multinational corporations
c) small shopkeepers
d) stall retailers
Answer:
Dissenters criticized the majority report issued by the Financial Crisis Inquiry
Commission (FCIC) on the grounds that the majority ________.
a) unfairly blamed nontraditional mortgages as the essential cause of the crisis
b) failed to identify systematic breakdown in accountability and ethics as one of the
essential causes of the crisis
c) unfairly blamed the credit bubble for the crisis
d) ignored evidence of a crisis in Europe at the same time as the one in the United
States
Answer:
From the Coasean perspective, social efficiency is a problem only when there are
impediments to ________.
a) growth
b) bargaining
c) expansion
d) diversification
Answer:
One of the keys to managing an activist environment is to understand the broader public
support of their agenda.
Answer:
According to Mao and Lin, which of the following was one of the four “olds”?
a) old people
b) old technology
c) old ideas
d) old machinery
Answer:
Which of the following makes an invention available to others and also allows the
discoverer to appropriate returns?
a) trademarking
b) branding
c) licensing
d) franchising
Answer:
________ 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
Answer:
The signatories to the Kyoto Protocol agreed to use a(n) ________ to reduce the cost of
achieving their commitments.
a) life-expectancy system
b) emissions permit trading system
c) greenhouse gases reporting system
d) command-and-control system
Answer:
Which of the following is true with regard to prioritization of rights?
a) Intrinsic rights have priority over instrumental rights.
b) The assessment of priorities with regard to rights does not involve the examination of
the interests those rights protect and promote.
c) Moral principles do not establish priorities.
d) Since moral and granted rights can be in conflict in managerial settings, they must
not be prioritized.
Answer:
Although the concept of sustainability is appealing, it is subject to two principal issues,
________ and ________.
a) the lack of private initiatives; high budget deficits
b) how to increase the current employment rate; the challenges of attracting foreign
investments
c) how to think about population growth; the difficulty of predicting future
technological progress and innovation
d) the slow growth of the renewable energy industry; the difficulty in curbing emissions
of greenhouse gases in developing countries
Answer:
At the level of an individual firm, successful participation in a domestic market requires
________.
a) inadequate capital markets for financial needs
b) specific knowledge of that market so as to apply the firm’s expertise
c) lower investment rates
d) drawing conclusions from the various measures and assessments for countries.
Answer:
What are barriers to entry?
Answer:
Describe the implication of antitrust policy on the management of a firm.
Answer:
What is antitrust policy? How do these laws represent social and economic policy?
Answer:
Write a short note on antitrust laws.
Answer:
Briefly describe the supply-and-demand framework that is used to assess the amount or
quantity of nonmarket action.
Answer:
Discuss judicial actions as an implementation strategy for nonmarket issues.
Answer:
Discuss the methodology of ethics in brief.
Answer:
Write a short note on coalition building.
Answer:
What are the three basic purposes of campaign contributions?
Answer:
Why is the products liability system considered imperfect? Use examples to support
your answer.
Answer: