Deck 5: Corporations

Question 1

The stakeholder model is also called the

A)Corporate welfare model
B)Social welfare model
C)Social entity model
D)Corporate entity model

Answer 1

C

Question 2

Peter French controversially believes that corporate acts are

A)Intentional
B)Self-interested
C)For the common good
D)For the benefits of their executives only

Answer 2

A

Question 3

The first instance of the corporate organization of a manufacturing enterprise in the United States occurred in

A)1743
B)1813
C)1867
D)1911

Answer 3

B

Question 4

The narrow view of corporate responsibility is that corporations should only

A)Maximize profits
B)Secure the common good
C)Benefit their stakeholders
D)Manufacture goods

Question 5

Who owns a company?

A)Executives
B)Stakeholders
C)Stockholders
D)Corporations

Question 6

_______ ______ is a key feature of the modern corporation.

A)Limited liability
B)Stakeholder sharing
C)Guaranteed profitability
D)Government protection

Question 7

Lord Thurlow said that you could not expect a corporation to have

A)A soul
B)A conscience
C)High profits
D)Continuous profitability

Question 8

Keith Davis believes that

A)Social responsibility arises from social power
B)Social responsibility undermines social power
C)Fiscal responsibility is the hallmark of success
D)Fiscal responsibility leads to social responsibility

Question 9

Thomas Donaldson holds that corporations can be

A)A force for good
B)Moral agents
C)Accountable for their wrong-doing in the past
D)Dissolved by government fiat

Question 10

The narrow view of corporate responsibility is endorsed by

A)Milton Friedman
B)John Rawls
C)Karl Marx
D)Michael Walzer

Question 11

The incorporation of business enterprises began

A)During the Elizabethan era
B)During the Victorian era
C)During the Edwardian era
D)During the Industrial Revolution

Question 12

The persons who provide the capital to a corporation are its

A)Executives
B)Beneficiaries
C)Stockholders
D)Directors

Question 13

The unintended negative or positive effects of business activity are called by economists

A)Fall out
B)Externalities
C)Indemnities
D)Secondary effects

Question 14

Who cast the case for a broader view of corporate responsibility is a historical perspective?

A)Melvin Anshen
B)John Kay
C)John Davis
D)Michael Walzer

Question 15

Corporations are clearly

A)Evil
B)Legal agents
C)Moral agents
D)Immoral agents

Question 16

What did Nicholas Murray Butler hold was the greatest discovery of modern times?

A)Penicillin
B)Printing
C)The limited liability corporation
D)Stock options to executives

Question 17

The stock of publically held companies is traded

A)Privately
B)Between directors only
C)Among the general public
D)Between government departments

Question 18

Who wrote of "the rules of the game"?

A)Karl Marx
B)Milton Friedman
C)David Freidman
D)John Rawls

Question 19

The East India Company was formed in

A)1675
B)1600
C)1765
D)1800

Question 20

Modern corporations are, in principle

A)Single-tiered structures
B)Two-tiered structures
C)Three-tiered structures
D)Horizontal organizations

Question 21

Christopher Stone argues that there are limits

A)To what the law can do
B)To what corporations can do to control us
C)To the profits a corporation can make
D)To the profits a corporation should make

Question 22

Externalities can be positive.

Question 23

Paul Camenisch holds that business

A)Is a great force for good
B)Propagates a view of humanity and the good life
C)Is seeking to control our minds
D)Controls our subconscious desires

Question 24

Friedman's bottom line is that the bottom line is not all that counts.

Question 25

Princeton University is a non-profit corporation.

Question 26

Manuel Velasquez holds that corporations can be held morally responsible.

Question 27

Kenneth Arrow holds that any kind of settled economic life requires a degree of ethical behavior.

Question 28

88% of job seekers prefer to work for a company that supports social causes.

Question 29

Theodore Levitt holds that corporations should pursue social justice.

Question 30

Adam Smith claims that an invisible hand

A)Guides good business managers
B)Makes the world safe for God-fearing people
C)Promotes the general good
D)Takes from the poor and gives to the rich

Question 31

Boards of directors typically rubber-stamp the decisions of management.

Question 32

Kenneth E.Goodpaster holds that corporations can show the same respect for persons as individual human beings can.

Question 33

The diffusion of responsibility can mean that no person in a corporation can be morally responsible for its actions.

Question 34

One challenger to the assumption that profits come at the expense of ethics is

A)Karl Marx
B)Kenneth Arrow
C)John Davis
D)Milton Friedman

Question 35

Milton Snoeyenbos holds that corporations should espouse a corporate moral code.

Question 36

David Friedman wrote Capitalism and Freedom.