Deck 3: Business Power

Question 1

The pluralist theory of business power was supported by Karl Marx.

Answer 1

False

Question 2

The laws of the United States have been shaped by the consequences of the industrial activities.

Answer 2

True

Question 3

Political scientist Thomas R.Dye identified an "institutional elite" of individuals who occupied the top positions in 10 sectors.

Answer 3

True

Question 4

The strength to act or to compel another entity to act is called power.

Question 5

An argument that supports the dominance theory is that there exists a small group of individuals who,by virtue of wealth and position,control the nation.

Question 6

G.William Domhoff argues the existence of a cohesive American upper class based on wealth,socialization in private schools,memberships in exclusive clubs,and occupancy of high positions in business,government,and nonprofit institutions.

Question 7

The grounds of legitimacy of business power are the same in all societies.

Question 8

Predictable and strong forces in a pluralistic,free market society limit business power.

Question 9

Elites challenge the logic of democratic ideology because in spite of being few in number they pilot the vast majority.

Question 10

During the period from 1895 to 1904,the public saw the growth of huge firms as a natural,inevitable,and desirable response to the new economic incentives.

Question 11

There are five major boundaries on managerial power: government and laws,social interest groups,social values,markets and economic stakeholders,and demographics of the society in which the managerial power wants to operate.

Question 12

According to sociologistC.Wright Mills,the American society was a pyramid of power and status where a group of elites carried out the lieutenant's policies.

Question 13

The dominance theory holds that business is preeminent in American society,primarily because of its control of wealth,and that its power is both excessive and inadequately checked.

Question 14

On the surface level,corporate power shapes society over time through the aggregate changes of industrial growth.

Question 15

Democratic values are one of the features of a pluralistic society.

Question 16

Corporate actions have an impact on society at two levels.

Question 17

Activity in the environmental sphere is the primary force for change.

Question 18

According to the dominance theory,business abuses the power its size and wealth confer in a number of ways.

Question 19

Within a pluralistic society,the authoritative entity has an overriding power over all other entities.

Question 20

Constitutional support has no role in encouraging pluralism.

Question 21

The ability of businesses to influence the values and habits of people in a society is called:

A) economic power.
B) cultural power.
C) technological power.
D) legal power.

Question 22

At the _____ level of corporate power,society encounters an intangible realm of social networks,time,and physical space,a realm crossed by complex chains of cause and effect that converge and interact,shaping and reshaping the society.

A) apparent
B) exterior
C) deep
D) surface

Question 23

On this level of political power,industrialization engenders values that radiate freedom and erode authoritarian regimes.

A) Apparent
B) Exterior
C) Deeper
D) Surface

Question 24

At this level,the workings of corporate power are unplanned,unpredictable,indirect,and irregular,but they are constant and far more significant.

A) Exterior
B) Deep
C) Surface
D) Apparent

Question 25

_____ exists on a wide spectrum ranging from coercion at one extreme to weak influence at the other.

A) An ideology
B) Justice
C) Power
D) Pluralism

Question 26

At the _____ level of economic power,the operation of a corporation affects its stakeholders.

A) deep
B) profound
C) multilayered
D) surface

Question 27

The ability of businesses to influence the laws of the society in which they operate is called:

A) social power.
B) technological power.
C) environmental power.
D) legal power.

Question 28

According to John Locke,for governments the opposite of power is ____,defined as "the exercise of power beyond right."

A) monarchy
B) tyranny
C) oligarchy
D) theocracy

Question 29

When businesses give money to candidates and lobby legislation,they are attempting to use:

A) political power at the surface level.
B) social power at the deeper level.
C) cultural power at the abysmal level.
D) legal power at the exterior level.

Question 30

In terms of levels of corporate power,on which of the following levels is business power the direct cause of visible,immediate changes,both great and small?

A) Deep level
B) Profound level
C) Multilayered level
D) Surface level

Question 31

In return for converting resources efficiently into needed goods and services,society gives corporations the authority to take necessary actions and permits a profit.This agreement derives from:

A) natural law.
B) positive law.
C) libertarianism.
D) social contract.

Question 32

The ability of a business to influence government is called:

A) social power.
B) political power.
C) general power.
D) personal power.

Question 33

_____ power is the ability to influence the direction,rate,characteristics,and consequences of physical innovations as they develop.

A) Technological
B) Political
C) Cultural
D) Economic

Question 34

On the _____ of legal power,big corporations have formidable legal resources that intimidate opponents.

A) abysmal level
B) fathomless level
C) surface level
D) deep level

Question 35

_____ power is the ability of a company to influence events,activities,and people by virtue of control over resources.

A) Legal
B) Technological
C) Economic
D) Social

Question 36

On which of the following levels does corporate power shape society over time through the aggregate changes of industrial growth?

A) Deep level
B) Apparent level
C) Exterior level
D) Surface level

Question 37

At which level of legal power do industrial activities influence the laws of the society?

A) Deeper level
B) Surface level
C) Apparent level
D) Exterior level

Question 38

Which of the following is true about power?

A) Power is generally evenly distributed.
B) Most societies do not have mechanisms to control and channel it for benefit.
C) Multiple,competing formations of power never balance each other.
D) Although power is sometimes used to prevent change,such resistance is itself a force that alters history.

Question 39

The force to act or to compel another person or entity to act is called:

A) power.
B) regulation.
C) justice.
D) management.

Question 40

The rightful use of business power is called:

A) legitimacy.
B) flexibility.
C) interactivity.
D) efficiency.

Question 41

All of the following are norms of social values EXCEPT:

A) duty.
B) justice.
C) economics.
D) piety.

Question 42

According to the _____ theory,business power is counterbalanced,restricted,controlled,and subject to defeat.

A) dominance
B) state autonomy
C) elite
D) pluralist

Question 43

Which theory of business power is the basis of the countervailing forces model of the business-government-society relationship?

A) Dominance theory
B) State autonomy theory
C) Pluralist theory
D) Elite dominance theory

Question 44

Which theory holds that business power is exercised in a society in which other institutions such as markets,government,labor unions,advocacy groups,and public opinion also have great power?

A) State autonomy theory
B) Elite theory
C) Pluralist theory
D) Dominance theory

Question 45

The idea that business is preeminent in American society,primarily because of its control of wealth,and that its power is both excessive and inadequately checked is based on the _____ theory of business power.

A) dominance
B) state autonomy
C) pluralist
D) agonism

Question 46

A(n)_____ society is one that has multiple groups and institutions through which power is diffused.

A) oligarchic
B) totalitarian
C) pluralistic
D) power elite

Question 47

Which of the following had a negative impact on traditional American society with the introduction of trains and the subsequent extension of the railroads?

A) Bringing more youth into rural areas.
B) Giving frequent services to small towns.
C) Redefining of rural areas from cultural heartland to rustic places.
D) Centralization of corporate power in rural areas.

Question 48

Political scientist Thomas R.Dye:

A) identified a "superclass" operating across borders through networks of individuals and organizations.
B) suggested that the new "superclass" eclipsed the power of national elites.
C) coined the term "power elite".
D) identified an "institutional elite" of individuals who occupied the top positions in 10 sectors.

Question 49

Activity in the _____ sphere is the primary force of change and from this,change radiates to other spheres.

A) environmental
B) economic
C) social
D) political

Question 50

Several features of American society support the thesis of pluralism.Which of the following is one of them?

A) It has capitalist values.
B) It encompasses a small population spread over a small geography but engaged in diverse occupations.
C) Its businesses are free of market pressures.
D) Its Constitution encourages pluralism.

Question 51

According to Karl Marx:

A) business power is exercised in a society in which other institutions also have great power.
B) a ruling capitalist class exploited workers and dominated other classes.
C) business power is counterbalanced,restricted,controlled,and subject to defeat.
D) largely through market forces,business power could be disciplined to benefit society.

Question 52

In the American society,the _____ were the first businesses to require modern management structures.

A) railroads
B) airways
C) car manufacturers
D) glass makers

Question 53

Which of the following doctrines held that all persons were created equal and were entitled to the same opportunities and protections?

A) The doctrine of natural rights
B) The Hallstein Doctrine
C) The Monroe Doctrine
D) The Fairness Doctrine

Question 54

One of the arguments that supports this theory is that there is a small group of individuals that exist,by virtue of wealth and position,control the nation and act in undemocratic ways.

A) Dominance theory
B) Pluralist theory
C) Agonism theory
D) Positive political theory

Question 55

For the largest companies in each era,economies of scale and _____ in markets led to high profits and prolonged their dominance.

A) monopolistic competition
B) perfect competition
C) monopoly
D) oligopoly

Question 56

_____ represent every segment of global society and have many ways to restrict business,including boycotts,lawsuits,picket lines,media campaigns,and lobbying for more regulation.

A) Social interest groups
B) Governments
C) Markets
D) Economic stakeholders

Question 57

_____ are the ultimate arbiters of legitimate behavior and can act forcefully to blunt the exercise of corporate power that harms the public.

A) Governments
B) Social interest groups
C) Markets
D) Economic stakeholders

Question 58

Which of the following is an example of a speculative technique?

A) Stock splitting
B) Declaring dividends
C) Short-selling
D) Stock dilution

Question 59

Scholar David Rothkopf:

A) suggests that the new superclass lags behind the power of national elites.
B) says that with globalization,a transnational power elite or "superclass" has emerged,operating across borders through "networks of individuals and organizations."
C) calculates a superclass membership of about 4,000,which is 0.0001 percent of the world population,or a member for each 1 million people.
D) says that the new superclass conspires to rule.

Question 60

The impact of a company on nature is called its:

A) social power.
B) technological power.
C) environmental power.
D) economic power.

Question 61

Discuss sociologistC.Wright Mill's views on the theory of the power elite.
The modern impetus for the theory of elite dominance comes from the sociologist
C.Wright Mills,who wrote a scholarly book in 1956 describing a "power elite" in American society.He saw American society as a pyramid of power and status.At the top was a tiny elite in command of the economic,political,and military domains.Just below was a group of lieutenants who carried out the elite's policies.They included professional managers of corporations,politicians beholden to the elite for their election,and bureaucrats appointed by the politicians.The large base of the pyramid was composed of a mass of powerless citizens,including feeble groups and associations with little policy impact.Mills did not see America as a democracy and thought that the elite simply used government "as an umbrella under whose authority they do their work."

Question 62

Discuss the concept of legitimacy.Explain how it is applicable to business power.

Question 63

Which of the following wields an important influence on corporate decisions?

A) Communities
B) Social values
C) Families
D) Stockholders

Question 64

On both the surface and deep levels,business power is exercised in spheres corresponding to the seven business environments.Discuss with examples.

Question 65

Define a pluralistic society.

Question 66

Discuss the concept of power.

Question 67

According to the theory of pluralism,what are the boundaries of managerial power?

Question 68

Discuss Domhoff's,Dye's,and Rothkopf's views on elite dominance.C.Wright Mill's theory of elite dominance continue to study elites and are less reluctant to suggest business dominance.One of them is G.William Domhoff,who,in a series of books,argues the existence of a cohesive American upper class based on wealth,socialization in private schools,membership in exclusive clubs,and occupancy of high positions in business,government,and nonprofit institutions.Within this upper class lies a smaller leadership group,a controlling core of leaders in the corporate community.According to Domhoff,this core is a power elite.Domhoff does not quantify the power elite.Its power can be measured by the maintenance of a pro-corporate environment.Using foundation money,think tanks,lobbying,and campaign contributions it is consistently able to defeat the policy preferences of liberals and progressives who favor income redistribution and greater equality of opportunities.
Political scientist Thomas R.Dye tried to identify precisely which individuals made up an American elite.Believing that power comes from leadership in organizations,he identified an "institutional elite" of individuals who occupied the top positions in 10 sectors-industrial,banking,insurance,investments,mass media,law,education,foundations,civic and cultural organizations,and government.
According to scholar David Rothkopf,globalization led to the emergence of a transnational power elite or "superclass," operating across borders through "networks of individuals and organizations." The superclass eclipses the power of national elites.It does not rule or conspire,but its dominant business subset,having "more power than any other group on the planet," abets an agenda of oil dependence,free markets,free trade,and military spending.

Question 69

Why is the American society considered to be a pluralistic society?

Question 70

Define the concept of elite dominance.C.Wright Mills,who wrote a scholarly book in 1956 describing a "power elite" in American society.

Question 71

Corporate actions have an impact on society at two levels.What are they?

Question 72

What are merger waves? What was the main impetus for the 1895-1904 wave?

Question 73

What are the two major perspectives on business power?

Question 74

Explain in brief the concept of business power.

Question 75

Briefly discuss the dominance theory.

Question 76

How did the introduction of railroads change American politics?B.Anthony took trains to all parts of the country,spreading her rhetoric and unifying the cause.