c.
leading consulting firms.
d.
human resource executives.
47. The primary focus of the Business Roundtable is
a.
free trade policies.
b.
opposing shareholder empowerment.
c.
the economic well-being of the nation.
d.
executive compensation.
48. The National Federation of Independent Businesses (NFIB) attributes its newfound power to
a.
b.
c.
d.
49. Distinct groups or parties that realize they have something in common, so that it makes sense for them to join forces,
typically form
a.
joint ventures.
b.
partnerships.
c.
coalitions.
d.
limited liability corporations.
50. The principal instruments through which business uses its financial resources to influence government are
a.
umbrella organizations.
b.
political action committees.
c.
trade associations.
d.
lobbyists.
51. The Golden Rule of Politics is
a.
do unto others before they do unto you.
b.
do unto others as you would want done to you.
c.
he who has the gold, rules.
d.
do unto others as they would want done to them.
52. The top PAC contributor during 2015-2016 was:
a.
Honeywell International
b.
Teamsters.
c.
Service Employees International Union.
d.
Lockheed Martin.
53. The channels through which corporations can make political contributions are.
a.
limited.
b.
many and varied.
c.
difficult to navigate.
d.
primarily tax loopholes.
54. Studies of financial performance outcomes on political spending
a.
show a strong correlation between contributions to PACs, and corporate financial performance.
b.
show a weak correlation between contributions to PACs, and corporate financial performance.
c.
are inconclusive.
d.
apply only to political outcomes.
55. Universities do more lobbying when congressional appropriations committee members serve the districts in which
they are located. This targeted lobbying is:
a.
successful
b.
unsuccessful.
c.
mixed.
d.
untested.
56. Key elements of corporate political disclosure and accountability include all of the following except
a.
lobbying.
b.
disclosure.
c.
policies.
d.
oversight.
57. Political accountability is:
a.
arguing against corporate political spending.
b.
making direct financial contributions.
c.
raising unlimited amounts of money to support a political candidate.
d.
responsibility for political actions and a willingness to answer for them.
58. Which of the following is not a level at which businesses lobby?
a.
individual company.
b.
sectoral trade associations.
c.
umbrella trade associations.
d.
All of these are levels at which businesses lobby.
59. Corporations which donate to PACs may encounter.
a.
leadership problems.
b.
agency problems.
c.
coalition problems.
d.
political problems.
60. After Citizens United, an explosion of money created:
a.
a campaign spending system that lets every citizen participate equally with corporations.
b.
a system that is no holds barred.
c.
a system that ignores corporate money
d.
None of these is true.
61. Green rankings can be misleading because:
a.
they focus on compliance with regulations.
b.
they focus on operational impacts.
c.
they focus on overall practices, while ignoring the firm’s political advocacy activities.
d.
All of these are correct.
62. The relationship between Congress and lobbying firms has been referred to as:
a.
cordial.
b.
friendly.
c.
a back door.
d.
a revolving door.
63. To fight for tort reform, the U.S. Chamber of Commerce established:
a.
The Institute for Tort Reform.
b.
The Institute for Legal Reform.
c.
The U.S. Chamber for Tort Reform.
d.
The American League for Tort Reform.
Provide a short answer to each of these questions. Be sure to fully explain your answer.
64. Describe the role of political activity to the success of business.
65. Why should we be vigilant of possible abuses of power or violations of sound ethics as we investigate the political
influence of business?
66. Federal laws require a waiting period of one year before former government officials can discuss private business
matters with anyone in the White House. Why does this provision exist? Is one year a sufficient waiting period?
67. Lobbyists often show legislators the benefits and detriments of complex legislation. Discuss the wisdom of allowing
lobbyists to perform this function.
68. The National Association of Manufacturers (NAM) experiences conflict among its members over the question of free
trade among nations. Why is this a contentious issue for NAM members?
69. The Chamber of Commerce has reinvigorated itself partially by representing the interests of individual companies that
do not want their names attached to certain lobbying efforts. Certain coalitions also provide companies with this
anonymity. Why would a company want to keep its name out of the public eye in lobbying efforts? and what resulting
impacts has this had for them?
70. Are the arguments for PACs more compelling than those against these organizations? Explain your position.
71. Why might PACs lose their effectiveness?
72. What can be done to limit the influence of money on the political process?
hold brief election campaigns that inform the public and do not cost billions of dollars.
73. What’s the danger of a company not being able to define a public issue.
74. What has been the impact of the Citizens United and Speechnow decisions on campaign funding?
Utilize the knowledge you have gained to respond to the following essay questions. Your answers should state your
position and use logical arguments and content from this and other chapters in the textbook to support it.
75. Microsoft was able to effectively defend against an antitrust suit by the United States, but lost a similar case in the
European Union. The European Commission charged that Microsoft exploited its monopoly position in several foreign
countries. Investigate the resolution of this case.
Also, how did Microsoft take advantage of its win in the U.S.?
76. Lobbyists have been identified as having very narrow self-interests. Apparently some of these interests go no further
than lining their own pockets, with no regard for their clients’ needs. Research the activities of Jack Abramoff and Michael
Scanlon in connection with their representation of several Native American tribes and their gambling casinos.
77. The textbook notes that Rep. Billy Tauzin of Louisiana, chief architect of the new Medicare prescription drug law, has
received a lucrative job lobbying for the pharmaceutical industry. News commentators have suggested that he has already
earned his salary because the Medicare bill is expected to provide windfall profits for the drug companies. Chapter 10 said
that one of the reasons government regulates business is to control excess profits. Are “windfall” profits for the
pharmaceutical industry “excessive?” If so, how can we reconcile government’s efforts to regulate against excess profits
with Tauzin’s ability to draft legislation that provides windfall profits?
78. Should PACs be outlawed? Why or why not?
79. Suppose that tobacco companies are faced with the threat of legislation that would make all tobacco products illegal to
sell. How would these companies keep this issue off the public agenda and out of the limelight?