Which of the following portrays a response strategy in crisis management program?
a) A computer screen manufacturing company decides to recall its faulty dispatch.
b) A pharmaceutical company appoints a contractor auditor to assess its manufacturing
process.
c) A company appoints a knowledgeable spokesperson to inform the public that the
water bottled by it is safe and tamper-proof.
d) A waste management company reveals that the root cause for incorrect disposal
method was lack of sufficient training to its employees.
Answer:
The Chicago school of thought to reasoning about antitrust concludes that predatory
pricing ________.
a) provides incentives that allows firms to engage in such acts
b) can deter some entry that would be desirable from the perspective of economic
efficiency.
c) can drive a competitor out of a market by cutting prices below the competitor’s costs
d) is unlikely to be successful, so it will not be attempted
Answer:
An NGO with expertise in environmental practices assists a company to design and
implement an external legitimate policy. This is an example of ________.
a) cooperative private politics
b) cooperative public politics
c) public nonmarket action
d) market competition analysis
Answer:
In deontological systems, the motive or reason for taking an action, or abiding by a
principle, is required to have ________ standing.
a) legal
b) political
c) economic
d) moral
Answer:
Which of the following is true about the cost of protectionism?
a) Organized consumer groups have been largely active in cases involving protection of
domestic industries.
b) Ultimately, the cost of protectionism is borne by producers.
c) The cost of protectionism is ultimately borne by consumers.
d) Individual consumers are fairly likely to act politically on trade protection issues.
Answer:
Which of the following was found in Iyengar and Kinder’s study on the effect of the
news media’s agenda-setting role on the public?
a) Viewers readily believed that the media did not have an agenda-setting plan.
b) Viewers were mostly skeptical of all reported news.
c) Viewers attached greater importance to an issue after seeing news coverage of it.
d) Viewers tended to lose interest in a story after it has been reported on the news.
Answer:
What do the antitrust laws of the US and EU have in common?
a) Both laws have per se offenses.
b) Both rely frequently upon voluntary approaches to regulation.
c) Neither allows defenses such as economic consequences.
d) Both aim at promoting competition.
Answer:
Direct stakeholders are those ________.
a) who have economic transactions with the firm
b) who operate in the same region as the firm
c) who have the same kind of output as the firm
d) who command a market monopoly
Answer:
Lawmaking and rulemaking take place in ________, where the formal rules of the
game are made.
a) political space
b) legal space
c) social place
d) the space of public sentiment
Answer:
Regulations of the European Union are legally binding on the member states and are
enforced by the ________.
a) European Commission
b) European Parliament
c) Council of Ministers
d) Court of Justice
Answer:
Which of the following goods is provided by the government to redistribute income
rather than because they are public goods?
a) landsat satellite system
b) public housing
c) radio and television broadcasts
d) national defense
Answer:
Which of the following is an important function of private politics?
a) It regulates the market dynamics for a specific industry.
b) It initiates and passes legislation in Congress.
c) It endorses a firm’s brand reputation.
d) It mobilizes people to work for causes.
Answer:
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 society’s approval
d) shareholders as principals
Answer:
Which of the following is the last step in addressing social pressure from activist
groups?
a) understand the broader public support for activist group’s agenda
b) identify relevant interest groups and activist organizations in a company’s market and
nonmarket environments
c) challenge the activists
d) assess how the media is likely to cover and treat the
Answer:
Which of the following regulatory agencies is not located in a cabinet department?
a) Environmental Protection Agency
b) Federal Aviation Administration
c) Occupational Health and Safety Administration
d) Food and Drug Administration
Answer:
In addition to prohibiting payments to government officials and private companies, the
________ prohibits “grease payments,” or facilitating payments, even if they do not
affect decision making by government employees such as those that provide routine
services.
a) FCPA
b) UK Bribery Act
c) Kyoto Protocol
d) Sherman Act
Answer:
A number of regional trade agreements such as the North American Free Trade
Agreement (NAFTA) and the treaties that established the single market in the European
Union, have reduced barriers and increased trade.
Answer:
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.
Answer:
When actions make some individuals better off and others worse off, ________ are
necessary in applying utilitarianism.
a) cap-and-trade systems
b) interpersonal comparisons
c) cost-benefit analyses
d) casuistic approaches
Answer:
Which of the following serves as overseer of banks and managed the bailout of banks
during the financial crisis?
a) the World Bank
b) the Federal Reserve Bank of New York
c) the International Monetary Fund
d) the Citigroup
Answer:
________ refers to inefficient actions induced by policy instruments that cause people
not to bear the full consequences of their actions.
a) Adverse selection
b) Moral hazard
c) Externalities
d) Natural monopoly
Answer:
The demand for nonmarket action is derived from the distributive consequences of an
alternative. Which of the following measures the distributive consequences for firms?
a) Prices and qualities of products
b) Jobs and wages
c) Sales, profits, and market value
d) Availability of goods and services
Answer: