Deck 9: Influencing the Political Environment

Question 1

Campaign finance reforms can be found in many countries other than the United States.

Answer 1

True

Question 2

Most scholars agree that business must participate in politics.

Answer 2

True

Question 3

Sometimes businesspeople leave the private sector to take employment in government before returning to the corporate world.

Answer 3

True

Question 4

In a 2009 Harris poll, how many people believed that political action committees were seen as too powerful?

A) 85 percent.
B) 65 percent.
C) 45 percent.
D) 15 percent.

Question 5

Businesses have an absolute right to exist and pursue profits.

Question 6

The emergence of public issues often encourages companies to monitor public concerns, respond to government proposals, and participate in the political process.

Question 7

The most effective type of lobbying involves targeting only federal officials.

Question 8

Proponents of business as a political participant argue:

A) A pluralistic system invites many participants.
B) It is business's constitutional right to be involved.
C) Business is a vital stakeholder of government.
D) Both A and C, but not

Question 9

Expert witnesses provide information to legislators for businesses or business groups.

Question 10

Public policies and government regulations are shaped by:

A) Business.
B) Special interest groups.
C) Government officials
D) All of the above.

Question 11

According to the textbook, in 2009, corporations are permitted by law to make direct contributions to political candidates for national and most state offices.

Question 12

Various stakeholder groups often use far different tactics than businesses to influence government officials, elections, and regulation.

Question 13

Businesses must wait for a public issue to arise before forming a political strategy.

Question 14

In 2008, a Google and Yahoo advertising partnership that would allow Google to sell ads alongside some search results in Yahoo prompted:

A) State legislatures to consider changing their regulation of advertising pharmaceuticals.
B) Other social media participants to rush to the same type of partnerships.
C) Protests by consumer groups, advertising associations and some firms.
D) A warm reception by the Obama administration.

Question 15

In many countries, the political environment has a select few participants.

Question 16

Under U.S. law, lobbying activities must be disclosed publicly.

Question 17

Labor unions have been an active participant in United States politics for decades.

Question 18

Loaning office personnel is a financial-incentive political strategy tool.

Question 19

Advocacy advertising focuses not on a company's views on controversial political issues, but rather on a particular product or service.

Question 20

In the 2008 election cycle, the United Auto Workers Union gave:

A) Less than 10 percent of its $1.1 million in contributions to Democrats.
B) 50 percent of its $1.1 million in contributions to Democrats.
C) All of its $1.1 million in contributions to Democrats.
D) None of its $1.1 million in contributions to Democrats.

Question 21

Economic leverage occurs when a business uses it economic power to:

A) Hire lobbyists to gain a desired political action.
B) Pay for the costs of regulation to acquire a desired political action.
C) Threaten to leave a location unless a desired political action is taken.
D) Buyout another firm to acquire a desired political action.

Question 22

The information strategy tool most used by business is:

A) Political contributions.
B) Lobbying.
C) Legal challenges.
D) Direct communication.

Question 23

Which of the following group has seen the greatest revolving door activity?

A) Professional sports agents.
B) Railroad industry executives.
C) Appropriations committee of the U.S. House of Representatives.
D) Nongovernmental organizations in the northeast U.S.

Question 24

The National Energy Plan signed into law by President Bush:

A) Extended daylight savings time 11 weeks.
B) Shortened daylight savings time 5 weeks.
C) Extended daylight savings time 4 weeks.
D) Was opposed by the barbecue industry.

Question 25

Expert witness testimony is often provided:

A) Through company newsletters.
B) On the steps of the White House.
C) In Congressional hearings.
D) In The Wall Street Journal.

Question 26

Two or more participants joining together to act in concert in the political process is called:

A) A political coalition.
B) An ad hoc coalition.
C) Cooperation.
D) Regulation.

Question 27

Lobbyists, under U.S. law, must disclose their:

A) Political affiliation and expenses.
B) Earnings.
C) Expenses.
D) Earnings and expenses.

Question 28

One of the most common financial-incentive strategy tools is:

A) Political action committee contributions.
B) Political consulting aid.
C) Advocacy advertising.
D) Lobbying.

Question 29

To influence government policymakers' actions, an information strategy involves:

A) Business leaders speaking before government policymakers.
B) Government policymakers hiring special interest groups for fact-finding projects.
C) Businesses listening to government policymakers in order to develop a corporate strategy.
D) Gaining support from other affected organizations.

Question 30

According to the textbook, under the existing U.S. campaign contribution law, individuals:

A) Can give more to PACs, and PACs can give more to individual candidates.
B) Can give more to PACs, but PACs cannot give more to each candidate.
C) Cannot give more to PACs, but PACs can give more to individual candidates.
D) Cannot give more to PACs, and PACs cannot give more to individual candidates.

Question 31

Businesses promote an information strategy by inviting government leaders to:

A) Visit local plant facilities.
B) Attend company award ceremonies.
C) Give speeches to employees.
D) All of the above.

Question 32

The greatest number of political action committees is represented by:

A) Trade or health groups.
B) Labor unions.
C) Business.
D) Non-connected groups.

Question 33

Companies have been permitted to contribute to political action committees since:

A) The early 1950s.
B) The mid-1970s.
C) The mid-1980s.
D) Never, they are prohibited by U.S. law.

Question 34

Which of the following is not a constituency-building strategy tool?

A) Expert witness testimony.
B) Advocacy advertising.
C) Public relations.
D) Legal challenges.

Question 35

One of the most effective organizations promoting direct communications between business and policymakers is:

A) The Knights of the Roundtable.
B) The Business Roundtable.
C) The Government Partnership Roundtable.
D) The Strategic Roundtable.

Question 36

According to the textbook, under the existing U.S. campaign contributions law, individuals can contribute:

A) Up to $1,400 to any candidate per election.
B) Up to $2,400 to any candidate per election.
C) Up to $5,400 to any candidate per election.
D) Nothing, only organizations can contribute to candidates.

Question 37

A corporate political strategy does not:

A) Hinder a competitor's ability to compete economically.
B) Seek to continue the firm's economic survival or growth.
C) Determine the legal limits allowed for campaign financing.
D) Exercise a firm's right to a voice in government affairs.

Question 38

A common tactic in a financial-incentive political strategy is:

A) Lobbying.
B) Legal challenges.
C) Expert witness testimony.
D) Political contributions.

Question 39

Since 1998, the number of lobbyists has risen about:

A) 12 percent
B) 32 percent
C) 42 percent.
D) 72 percent

Question 40

Advocacy ads are also called:

A) Issue advertisements.
B) Research and development plans.
C) Constituent advertisements.
D) Price control advertisements.

Question 41

Trade associations are:

A) Coalitions of companies in the same or related industries.
B) Prohibited by U.S. law.
C) Made up of unionized workers.
D) Found in developing countries.

Question 42

In December 2003, a federal court ruled that the campaign finance reforms ban on soft money:

A) Was unconstitutional.
B) Restricted a large source of government corruption.
C) Was a matter for the states to decide.
D) Was unfair to the Democratic National Committee.

Question 43

Compare and contrast the three levels of business political involvement.

Question 44

Identify and describe four of the eight themes found in campaign financing reform abroad.

Question 45

Who are the major participants in the political process and are they cooperative or adversarial in their relations with each other?

Question 46

How do the three types of corporate political strategies differ from each other?

Question 47

Supporters of advocacy advertisements believe that they:

A) Identify a company as an interested and active stakeholder.
B) Can help mold public opinion on a particular policy issue.
C) Increase union activity and long-term expenses for an organization.
D) Both A and B, but not

Question 48

Campaign finance reform was sought in the United States to:

A) Reduce the corrupting influence of money in the political process.
B) Include more participants in financing political campaigns.
C) Balance business and labor unions political campaign contributions.
D) Enable non-U.S. citizens access to the U.S. campaign financing arena.

Question 49

Describe two tactics used to promote each of the three types of corporate political strategies.

Question 50

How does the problem of money and campaign financing in the American political system affect business?

Question 51

When a business seeks to overturn a law after it has been passed or threatens to challenge the legal legitimacy of the new regulation in the courts, this is called:

A) Accumulating.
B) Overturn lobbying.
C) Legal challenges.
D) Funneling.

Question 52

Prepare a strong argument in favor of and in opposition to businesses being involved in the political process.