2
Chapter Two
SHORT ANSWER
1. The theory that businesses only social responsibility is to maximize profits within the
confines of the law was asserted by __________.
2. The __________ theory asserts that businesses bear moral responsibility to
shareholders and other societal groups.
3. The __________ holds that because managers work for shareholders, managers must
do whatever shareholders want.
4. When managers act in the interests of stakeholders, because it achieves something else
that is morally required, they act on __________ moral reasons.
general moral duties is the __________.
ESSAY
1. .
3. Explain the general principles
strengths and weaknesses.
4. Define the stakeholder paradox, and create a hypothetical business situation in which
that paradox would occur.
5. Evaluate a current event in business in light of either the shareholder value or
stakeholder theory.