Question 1

Until the early 1950s, corporations were legally required to follow the shareholder model.

Accepted Answer

The shareholder model was legally required for corporations until the early 1950s, when alternative models began to emerge.

Question 2

Many Fortune 500 companies practice the stakeholder model.

Accepted Answer

Many Fortune 500 companies have shifted towards practicing the stakeholder model which prioritizes the interests of all stakeholders including employees, customers, suppliers, and the community, instead of just focusing on maximizing profits for shareholders.

Question 3

Corporations are legally required to &#34;do good deeds.&#34;

Accepted Answer

Corporations are primarily focused on generating profits for their shareholders and are not legally required to prioritize "doing good deeds." However, some corporations voluntarily engage in corporate social responsibility initiatives and philanthropic efforts as part of their business model. Additionally, there may be certain regulations and laws that require corporations to comply with ethical and moral standards in their operations, but this does not necessarily translate to a legal requirement to "do good deeds" in a broad sense.

Question 4

Corporations are owned by stakeholders.

Accepted Answer

Corporations are owned by shareholders, who invest money in the company by buying shares of stock. Stakeholders include anyone with an interest in the company's success, such as employees, customers, suppliers, and the community, but they do not own the corporation.

Question 5

Paying dividends reflects the _____ viewpoint.&#10;A)shareholder&#10;B)direct stakeholder&#10;C)indirect stakeholder&#10;D)philanthropy

Accepted Answer

Paying dividends is a decision made by the board of directors of a company, based on the company's financial performance and the interests of its shareholders. Therefore, it reflects the shareholder viewpoint, as they receive a portion of the company's profits in the form of dividends.

Question 6

In the 1919 lawsuit discussed in the chapter, the Dodge Brothers were&#10;A)customers.&#10;B)stockholders.&#10;C)corporate owners.&#10;D)representatives of a charitable organization.

Accepted Answer

In the 1919 lawsuit, the Dodge Brothers were stockholders in the Ford Motor Company. They sued Henry Ford for his decision to reinvest company profits for expansion rather than distribute them as dividends to shareholders.

Question 7

New Start Pictures is a small, independent film company. Which is a direct stakeholder in the company?&#10;A)its creative director&#10;B)the production staff&#10;C)the company that distributes its movies&#10;D)all of the above

Accepted Answer

All three options (creative director, production staff, and movie distributors) are directly involved in the success or failure of New Start Pictures. As such, they are all considered direct stakeholders in the company.

Question 8

After World War II, laws were revised so that U.S. corporations could&#10;A)increase their profits.&#10;B)get more business.&#10;C)play a larger role in society.&#10;D)favor their owners.

Accepted Answer

After World War II, laws were revised to allow U.S. corporations to play a larger role in society, reflecting a shift towards recognizing the broader social responsibilities and potential contributions of corporations beyond just profit-making.

Question 9

In a true ethical dilemma, a company considers an action that will not increase the stockholders' return in any certain or measurable way.

Accepted Answer

In a true ethical dilemma, the decision is not solely based on financial gain for the stockholders, but also takes into consideration ethical principles and values. Therefore, the action may not necessarily provide a measurable or certain increase in stockholder returns.

Question 10

Unless you have investments, the stock market has little impact on your life.

Accepted Answer

The answer of Unless you have investments, the stock market...

Question 11

Milton Friedman was an advocate of&#10;A)the stakeholder model.&#10;B)the shareholder model.&#10;C)corporate philanthropy.&#10;D)economics.

Accepted Answer

The answer of Milton Friedman was an advocate of&#10;A)the stakeholder...

Question 12

Milton Friedman argued that since stockholders have invested money in a company, their interests should be given preference over those of others.

Accepted Answer

The answer of Milton Friedman argued that since stockholders have...

Question 13

Match between columns&#10;                        Premises: A financial instrument sold to raise capital for a corporation&#10;A financial instrument sold to raise capital for a corporation&#10;A financial instrument sold to raise capital for a corporation&#10;A financial instrument sold to raise capital for a corporation&#10;A financial instrument sold to raise capital for a corporation&#10;A financial instrument sold to raise capital for a corporation&#10;A financial instrument sold to raise capital for a corporation&#10;A financial instrument sold to raise capital for a corporation&#10;A business practice that favors increasing shareholder wealth over all other objectives&#10;A business practice that favors increasing shareholder wealth over all other objectives&#10;A business practice that favors increasing shareholder wealth over all other objectives&#10;A business practice that favors increasing shareholder wealth over all other objectives&#10;A business practice that favors increasing shareholder wealth over all other objectives&#10;A business practice that favors increasing shareholder wealth over all other objectives&#10;A business practice that favors increasing shareholder wealth over all other objectives&#10;A business practice that favors increasing shareholder wealth over all other objectives&#10;The number of employees a business must hire to replace workers who have left the company&#10;The number of employees a business must hire to replace workers who have left the company&#10;The number of employees a business must hire to replace workers who have left the company&#10;The number of employees a business must hire to replace workers who have left the company&#10;The number of employees a business must hire to replace workers who have left the company&#10;The number of employees a business must hire to replace workers who have left the company&#10;The number of employees a business must hire to replace workers who have left the company&#10;The number of employees a business must hire to replace workers who have left the company&#10;The theory that a company has ethical responsibilities to many people affected by the decisions and actions of the business&#10;The theory that a company has ethical responsibilities to many people affected by the decisions and actions of the business&#10;The theory that a company has ethical responsibilities to many people affected by the decisions and actions of the business&#10;The theory that a company has ethical responsibilities to many people affected by the decisions and actions of the business&#10;The theory that a company has ethical responsibilities to many people affected by the decisions and actions of the business&#10;The theory that a company has ethical responsibilities to many people affected by the decisions and actions of the business&#10;The theory that a company has ethical responsibilities to many people affected by the decisions and actions of the business&#10;The theory that a company has ethical responsibilities to many people affected by the decisions and actions of the business&#10;Efforts to improve the well-being of others through charitable donations&#10;Efforts to improve the well-being of others through charitable donations&#10;Efforts to improve the well-being of others through charitable donations&#10;Efforts to improve the well-being of others through charitable donations&#10;Efforts to improve the well-being of others through charitable donations&#10;Efforts to improve the well-being of others through charitable donations&#10;Efforts to improve the well-being of others through charitable donations&#10;Efforts to improve the well-being of others through charitable donations&#10;A business that provides a service or commodity that other businesses require&#10;A business that provides a service or commodity that other businesses require&#10;A business that provides a service or commodity that other businesses require&#10;A business that provides a service or commodity that other businesses require&#10;A business that provides a service or commodity that other businesses require&#10;A business that provides a service or commodity that other businesses require&#10;A business that provides a service or commodity that other businesses require&#10;A business that provides a service or commodity that other businesses require&#10;The theory that a company's only obligation is to try to make as much money as possible for its investors and owners&#10;The theory that a company's only obligation is to try to make as much money as possible for its investors and owners&#10;The theory that a company's only obligation is to try to make as much money as possible for its investors and owners&#10;The theory that a company's only obligation is to try to make as much money as possible for its investors and owners&#10;The theory that a company's only obligation is to try to make as much money as possible for its investors and owners&#10;The theory that a company's only obligation is to try to make as much money as possible for its investors and owners&#10;The theory that a company's only obligation is to try to make as much money as possible for its investors and owners&#10;The theory that a company's only obligation is to try to make as much money as possible for its investors and owners&#10;A business that sells a product manufactured by others to retailers&#10;A business that sells a product manufactured by others to retailers&#10;A business that sells a product manufactured by others to retailers&#10;A business that sells a product manufactured by others to retailers&#10;A business that sells a product manufactured by others to retailers&#10;A business that sells a product manufactured by others to retailers&#10;A business that sells a product manufactured by others to retailers&#10;A business that sells a product manufactured by others to retailers

Accepted Answer

The Answer of stakeholder model and distributor and philanthropy and is...

Question 14

A company's stakeholders include its stockholders.

Accepted Answer

The answer of A company's stakeholders include its stockholders....

Question 15

An example of corporate philanthropy is&#10;A)increasing the wages of lower-level employees.&#10;B)increasing the salaries of upper-level management.&#10;C)sponsoring a local theater company.&#10;D)all of the above

Accepted Answer

The answer of An example of corporate philanthropy is&#10;A)increasing the...

Question 16

Which is not an example of an indirect stakeholder?&#10;A)a community&#10;B)society&#10;C)the environment&#10;D)All of the above are indirect stakeholders.

Accepted Answer

The answer of Which is not an example of an...

Question 17

A fundamental question in business ethics is, What is the purpose of a corporation supposed to be?

Accepted Answer

The answer of A fundamental question in business ethics is,...

Question 18

A CEO who believes the company should maximize profits at all costs is following the stakeholder model.

Accepted Answer

The answer of A CEO who believes the company should...

Deck 4: Shareholder Theory and Stakeholder Theory