1. The primary factor behind the transition from a relatively simple business model to the highly complex state we now
have is public recognition that the business organization is no longer the sole property or interest of its owners.
a.
True
b.
False
2. The corporation is currently viewed as having a specialized purpose of providing a profit through the provision of
goods and services.
a.
True
b.
False
3. Some authors now argue that stakeholder inclusion is the key to corporate success.
a.
True
b.
False
4. The stakeholder view of the firm is now universally accepted.
a.
True
b.
False
5. A major distinction between the managerial view of the firm and the stakeholder view is the recognition that groups
who think they have a stake in the firm are properly included as stakeholders, whether managers of the firm agree with
them or not.
a.
True
b.
False
6. The descriptive value of the stakeholder model is based in its ability to identify and describe particular stakeholders for
the firm.
a.
True
b.
False
7. The assumption underlying the instrumental value of the stakeholder model is that effective stakeholder management
should lead to achievement of traditional business goals such as profits and growth.
a.
True
b.
False
8. The stakeholder model has normative value because it emphasizes how stakeholders should be treated.
a.
True
b.
False
9. One of the reasons that the stakeholder model is becoming more popular is because the stakeholder environment is
finally calming down after several decades of turbulence.
a.
True
b.
False
10. The use of generic groups to answer the question “Who are our stakeholders?” is generally sufficient for businesses.
a.
True
b.
False
11. Once stakeholders have been identified, the firm can safely assume that they will remain the same for several years.
a.
True
b.
False
12. Before managers in the firm can identify what stakes are held, they must first identify who the stakeholders are.
a.
True
b.
False
13. To get a corporation to respond to its demands a stakeholder must hold all three attributes of power, legitimacy, and
urgency.
a.
True
b.
False
14. Because stakeholder challenges usually contain a risk of damage to the firm, they are given more attention than
stakeholder opportunities in the textbook.
a.
True
b.
False
15. In the typology of organizational stakeholders shown in Figure 3-8, a stakeholder that holds both high potential for
cooperation with and threat to the firm is seen as a mixed blessing.
a.
True
b.
False
16. The primary strategy for a manager relative to a marginal stakeholder is to monitor that group.
a.
True
b.
False
17. A major criticism of the stakeholder management approach is that it is extremely complex and time consuming.
a.
True
b.
False
18. The transactional level of stakeholder management capability requires companies to compete on the basis of their
financial strength and tangible assets.
a.
True
b.
False
19. The primary element in the concept of the stakeholder corporation is that stakeholders should be granted ownership
positions in the firm relative to their power over the firm.
a.
True
b.
False
20. The key to effective stakeholder management is in its implementation.
a.
True
b.
False
21. For sustainable development to become a reality, which approach offers the best opportunity for this to happen?
a.
Socioeconomic
b.
Stakeholder
c.
Shareholder
d.
Organizational
22. Some authors indicate that the corporate model needs redefinition because of all the following except
a.
b.
c.
d.
23. Business organizations must address the legitimate needs and expectations of stakeholders because
a.
it is required by law.
b.
it is the right thing to do.
c.
stakeholders force them to.
d.
they will need to, in order to be successful in the long run.
24. Which of the following statements is accurate?
a.
Stockholders are the same thing as stakeholders.
b.
All stakeholders are stockholders.
c.
Stakeholders are a subset of stockholders.
d.
Every stockholder is a stakeholder.
25. An interest or share in something is referred to as a(n)
a.
option.
b.
ownership position.
c.
stake.
d.
bond.
26. Any type of stake can be viewed as a(n)
a.
option.
b.
ownership position.
c.
right.
d.
duty.
27. An individual or group who can affect or be affected by an organization is a(n)
a.
stakeholder.
b.
stockholder.
c.
shareholder.
d.
owner.
28. Which of the following is not recognized as a type of stake?
a.
an interest
b.
an option
c.
a right
d.
ownership
29. The view of the firm that recognizes just suppliers and customers as stakeholders is the
a.
production view.
b.
managerial view.
c.
ownership view.
d.
stakeholder view.
30. The view of the firm that recognizes suppliers, customers, employees, and owners as stakeholders is the
a.
production view.
b.
managerial view.
c.
ownership view.
d.
stakeholder view.
31. The view of the firm that recognizes a wide variety of groups as stakeholders is the
a.
production view.
b.
managerial view.
c.
ownership view.
d.
stakeholder view.
32. Which of the views of the firm recognizes the most stakeholders and is the most complex?
a.
production view
b.
managerial view
c.
ownership view
d.
stakeholder view
33. Which of the views of the firm recognizes the fewest stakeholders and is the least complex?
a.
production view
b.
managerial view
c.
ownership view
d.
stakeholder view
34. A group of people who holds a direct stake in the firm is known as
a.
primary social stakeholders.
b.
secondary social stakeholders.
c.
primary nonsocial stakeholders.
d.
secondary nonsocial stakeholders.
35. A group of people who is able to influence the firm, but does not hold a direct stake in is known as
a.
primary social stakeholders.
b.
secondary social stakeholders.
c.
primary nonsocial stakeholders.
d.
secondary nonsocial stakeholders.
36. A nonhuman species (such as the spotted owl) that holds a direct stake in a firm is called a
a.
primary social stakeholder.
b.
secondary social stakeholder.
c.
primary nonsocial stakeholder.
d.
secondary nonsocial stakeholder.
37. A group of people who represents the interests of a nonhuman species (such as the natural environment) and does not
have a direct stake in the firm is known as
a.
primary social stakeholders.
b.
secondary social stakeholders.
c.
primary nonsocial stakeholders.
d.
secondary nonsocial stakeholders.
38. If we consider the stakeholder typology, and the three attributes of power, group number seven in the very center is
called:
a.
A definitive stakeholder
b.
A dormant stakeholder
c.
A dependent stakeholder
d.
A discretionary stakeholder
39. If we consider the stakeholder typology, and the three attributes of power, group number eight on the outside is called:
a.
A definitive stakeholder
b.
A dangerous stakeholder
c.
A demanding stakeholder
d.
A nonstakeholder
40. If we consider the stakeholder typology, and the three attributes of power, group number one on the top outside is
called:
a.
A dormant stakeholder
b.
A dangerous stakeholder
c.
A demanding stakeholder
d.
A nonstakeholder
41. Which of the following is not an attribute upon which managers judge the importance of stakeholders?
a.
power
b.
urgency
c.
legitimacy
d.
nationality
42. The perceived validity or appropriateness of a stakeholder’s claim is referred to as
a.
power.
b.
legitimacy.
c.
urgency.
d.
coercion.
43. A stakeholder’s ability or capacity to produce an effect within the firm is called its
a.
power.
b.
legitimacy.
c.
urgency.
d.
coercion.