1 Business should consider a responsibility to be ethical with its stakeholders.
(A) True
(B) False
Feedback: Businesses should act ethically.
2 ________ is the general term used for people who have a stake or special interest in
business activities because they are affected by business decisions or can affect business
performance.
(A) Shareholders
(B) Managers
(C) Attorneys
(D) Stakeholders
(E) Employees
3 What is the modern textbook role of business and its managers?
(A) The role of business is to make profits for shareholders. The role of managers is to
maximize profits.
(B) The role of business is to make products. The role of managers is select products that will maximize
profits.
(C) The role of business is to create value for stakeholders, who are affected by the business and can
affect firm performance. The role of managers is to integrate market and nonmarket environmental
strategies ethically to create value for stakeholders.
(D) The role of business is to create jobs. The role of managers is to select the best employees.
(E) None of these are correct.
4 A/n ________ guides a firm’s interactions with its stakeholders to achieve the firm’s
objectives.
(A) diversification
(B) environment
(C) product
(D) public sentiment
(E) strategy
5 What is the primary objective of integrating market and nonmarket strategies?
(A) To create business opportunities that requirs integrated strategies to guide firm
interactions.
(B) To influence the nonmarket structure so that they can compete effectively in the market environment.
(C) To compete for customers with the help of suppliers to make a profit.
(D) None of these is correct.
(E) All of these are correct.
6 _______ is the moral standard of right and wrong that influences behavior.
(A) Environments
(B) Management
(C) Moral dilemma
(D) Ethics
(E) Strategies
7 Which of the following is true of amoral managers?
(A) Their values are based on the Judeo-Christian faiths.
(B) They have strong ethics and apply those ethics to their business.
(C) They want to be socially responsible.
(D) They want to maximize profits but with a strong sense of ethics.
(E) They do not believe ethics applies to business.
8 Which of the following are stakeholders in a business as identified by the textbook?
(A) Owners
(B) Employees
(C) Politicians
(D) Distributors
(E) Consumers who don’t buy a company’s product
9 What would be considered as nonmarket society environment elements?
(A) Societal interest groups
(B) Employees
(C) News media
(D) Managers
(E) Communities
10 Select categories of the nonmarket government environment.
(A) Owners
(B) Political environment
(C) Suppliers
(D) Legal environment
(E) Other companies
11 Which of the following branches of government does the legislative branch include?
(A) The Senate
(B) The House of Representatives
(C) Regulatory agencies.
(D) The President’s office
(E) The Supreme Court
12 To be successful, what must businesses do?
(A) Take advantage of market opportunities.
(B) Make a business plan but not strategies to implement it.
(C) Avoid threats created by the nonmarket environment.
(D) Pay little attention to the nonmarket environment.
(E) Ignore competition.
13 Which of the following is/are included in the applied ethical approach?
(A) Morality
(B) Ethics
(C) Strategies
(D) Honesty
(E) Integrity
14 Describe the difference between capitalism, pluralism, and democracy.
Answer:
15 What are factors contributing to special interest groups and social problems?
Answer:
16 What is the difference between a customer and a consumer?
Answer:
17 List and explain the three branches of government.
Answer:
18 What is the role of business?
Answer:
19 Which statement about the environment and balance of power is not correct?
(A) The political environment includes the government legislative, executive, and judicial
branches.
(B) The power of the president is checked by Congress as it must approve his or her cabinet, judicial
appointees, and budget.
(C) Congress has power over regulators.
(D) The power of Congress is checked by the president, as he or she can veto its bills.
(E) The courts can change the laws and regulations made by Congress and executive-branch regulators.
20 Which of the following would include the natural environment of business?
(A) A software company offering free software to anybody who subscribes to its service.
(B) A company who is concerned with the success of its products in Malaysia.
(C) A company concerned with the legal implications of electronic file sharing in foreign countries.
(D) A car company voluntarily painting its cars with environmentally-friendly paint.
(E) McDonald’s serving only sandwiches and burgers without beef.
21 Government and society can help business.
(A) True
(B) False
22 Special interest groups can affect business negatively as well as positively.
(A) True
(B) False
23 Sometimes competitors help each other.
(A) True
(B) False
24 Unions are for-profit governmental organizations that represent the interests of their
members and workers.
(A) True
(B) False
25 The nonmarket government environment includes the political environment as well as the
legal environment.
(A) True
(B) False
26 The executive branch of government has far more power than either the legislative or the
judicial branches.
(A) True
(B) False
27 Internet businesses like eBay and Amazon have revolutionized the way consumers shop.
(A) True
(B) False
28 DropBox technology cannot be used on smart phones.
(A) True
(B) False
29 Few large American businesses compete globally.
(A) True
(B) False
30 Business has a responsibility to be ethical with its stakeholders.
(A) True
(B) False
31 Nonmarket strategies are more significant to some industries and businesses than others.
(A) True
(B) False
32 Managers need not concern themselves about the interrelationships between the market
and nonmarket environments
(A) True
(B) False
33 Which definition of business, society and government is not correct?
(A) A business is a firm that sells a product for a profit.
(B) Society includes interest groups and the communities affected by business.
(C) Government includes the executive, legislative, and judicial branches at the local, state, federal, and
international levels.
(D) None of these statements is correct.
(E) All of these statements are correct
34 ________ is the belief that we are owed something just because we are a member of
society or a particular group in that society.
(A) Social problem recognition
(B) Entitlement mentality
(C) Swollen expectations
(D) Victimization
35 Which statement about the market and nonmarket is not correct?
(A) The market environment includes owners, employees, suppliers, customers, and
competitors.
(B) The nonmarket environment includes interactions with society and government.
(C) The nonmarket environment structures (laws and regulations) how business operates in the market
environment and the positions of firms in the market, and it creates opportunities for and threats to
business.
(D) The market environment creates issues of special interest that are addressed in the nonmarket
environment.
(E) All these statements are correct.
36 MADD, PETA. And AARP are all considered ________.
(A) news media
(B) regulators
(C) special interest groups
(D) taxing entities
(E) None of the above
37 Which statement about the nonmarket is not correct?
(A) The nonmarket government environment includes the executive, legislative, and judicial
branches.
(B) Social interest group activists pressure business to meet their special interest.
(C) The government creates and enforces the laws, rules, and regulations that firms must abide by when
conducting business in the market environment.
(D) All of these are correct.
(E) The nonmarket society environment includes societal interest groups and suppliers.
38 What is the role of managers?
Answer: