Question 1

Some firms do not have a board of directors.

Accepted Answer

Not all firms have a board of directors.A lawyer, for instance, may operate as a sole proprietor, making all her own decisions.

Question 2

There are stakeholders in both an organization's internal and its external environments.

Accepted Answer

Stakeholders are the people whose interests are affected by an organization's activities.Figure 3.1 shows that there are both internal and external stakeholders.

Question 3

Customers are those who pay to use an organization's goods or services.

Accepted Answer

Customers are those who pay to use an organization's goods or services.

Question 4

Studies show that students who cheat and don't actually do the assigned work are more likely to fail anyway.

Accepted Answer

As the research shows, students who cheat and thus don't actually do the assigned work are more likely to fail anyway.

Question 5

In a corporation, the chief executive is typically elected by the stockholders of the firm.

Accepted Answer

Who hires the chief executive of a for-profit or nonprofit organization? In a corporation, it is the board of directors, whose members are elected by the stockholders to see that the company is being run according to their interests.

Question 6

Prior to its natural gas pipeline explosion, Pacific Gas and Electric (PG&E) had an incentive system that encouraged crews to find leaks, which led to steep increases in repair costs.

Accepted Answer

Prior to the explosion, PG&E relied on gas-leak surveys to determine whether transmission pipelines were safe, but the company's incentive system awarded bonuses to supervisors whose crews found fewer leaks and kept repair costs down.Indeed, the company's own internal audit found the incentives actually encouraged crews to produce inaccurate surveys.

Question 7

The task environment consists of groups that present workers with daily tasks to handle.

Accepted Answer

The task environment consists of 11 groups that present you with daily tasks to handle.

Question 8

A supplier is a person or an organization that provides materials or labor to consumers.

Accepted Answer

A supplier is a person or an organization that provides supplies like raw materials, services, equipment, labor, or energy to other organizations, not consumers.

Question 9

In an organization's environment, internal stakeholders include the customers of an organization.

Accepted Answer

Internal stakeholders include employees, owners, and the board of directors.Customers are one of the external stakeholders in the task environment.

Question 10

Only those with an ownership interest in a company are known as stakeholders.

Accepted Answer

Stakeholders are the people whose interests are affected by an organization's activities.Figure 3.1 shows that there are both internal and external stakeholders of many types.

Question 11

Far East Chop House is an American restaurant that purchases beef from a Nebraska company that raises Japanese cattle.The Nebraska company would best be described as a distributor for the Far East.

Accepted Answer

A supplier is a person or an organization that provides supplies like raw materials, services, equipment, labor, or energy to other organizations, as the cattle raiser provides beef to the restaurant.

Question 12

Strategic allies may be organizations that are traditional rivals but combine their efforts to overcome a new competitor or other threat in the environment.

Accepted Answer

Companies, and even nonprofit organizations, frequently link up with other organizations (even competing ones) in order to realize strategic advantages.The term strategic allies describes the relationship of two organizations who join forces to achieve advantages neither can perform as well alone.

Question 13

The psychological mechanism of motivated blindness discourages cheating among students.

Accepted Answer

Students know cheating is wrong, but they do it because of psychological mechanisms such as motivated blindness, the tendency to overlook information that works against their best interest.

Question 14

Rafael sits on the board of directors for Pierson Fabrication, Inc., but he is not among the executive leadership of the organization.In fact, he works for an American carmaker.Therefore Rafael is an external stakeholder for Pierson.

Accepted Answer

Internal stakeholders include employees, owners, and the board of directors.Some of the directors on the board (inside directors) may be top executives of the firm.The rest (outside directors) are elected from outside the firm.

Question 15

The two parts of the external environment are the task environment and the socio-political environment.

Accepted Answer

The external environment consists of the task environment and the general environment.

Question 16

Competitors compete solely for customers and raw materials.

Accepted Answer

Competitors are people or organizations that compete for customers or resources.But among these resources are raw materials and also talented employees.

Question 17

Cheating may be done as a way to redress perceived unfairness.

Accepted Answer

People rationalize cheating with justifications that are mainly personal and emotional, including that cheating seeks to redress perceived unfairness.The urge to cheat may arise from a deep sense of unfairness, such as your sense that other people had special advantages that you did not.

Question 18

Customers have more faith in health insurance companies to handle complaints than they have in apparel outlets.

Accepted Answer

According to a Forrester Research report, 54% of customers think it would be easy to have a customer service issue resolved in clothing and apparel outlets but only 30% think the same in health insurance companies.

Question 19

Distributors have been hurt by the rise in popularity of the Internet.

Accepted Answer

The rise in popularity of the Internet has allowed manufacturers of cell phones, for example, to cut out the "middleman," the distributor, and to sell to customers directly.

Question 20

Internal stakeholders include the employees of an organization.

Accepted Answer

The internal stakeholders consist of employees, owners, and the board of directors, if any.

Quiz 3: The Managers Changing Work Environment and Ethical Responsibilities: Doing the Right Thing

Some firms do not have a board of directors.

There are stakeholders in both an organization's internal and its external environments.

Customers are those who pay to use an organization's goods or services.

Studies show that students who cheat and don't actually do the assigned work are more likely to fail anyway.

In a corporation, the chief executive is typically elected by the stockholders of the firm.

Prior to its natural gas pipeline explosion, Pacific Gas and Electric (PG&E) had an incentive system that encouraged crews to find leaks, which led to steep increases in repair costs.

The task environment consists of groups that present workers with daily tasks to handle.

A supplier is a person or an organization that provides materials or labor to consumers.

In an organization's environment, internal stakeholders include the customers of an organization.

Only those with an ownership interest in a company are known as stakeholders.

Far East Chop House is an American restaurant that purchases beef from a Nebraska company that raises Japanese cattle.The Nebraska company would best be described as a distributor for the Far East.

Strategic allies may be organizations that are traditional rivals but combine their efforts to overcome a new competitor or other threat in the environment.

The psychological mechanism of motivated blindness discourages cheating among students.

Rafael sits on the board of directors for Pierson Fabrication, Inc., but he is not among the executive leadership of the organization.In fact, he works for an American carmaker.Therefore Rafael is an external stakeholder for Pierson.

The two parts of the external environment are the task environment and the socio-political environment.

Competitors compete solely for customers and raw materials.

Cheating may be done as a way to redress perceived unfairness.

Customers have more faith in health insurance companies to handle complaints than they have in apparel outlets.

Distributors have been hurt by the rise in popularity of the Internet.

Internal stakeholders include the employees of an organization.