Deck 9: Sustainability

Question 1

The graph given below compares the GDP of a country with the country's energy consumption. Analyze the graph and identify a statement that is true for the years 2010-2015.

A) The country's GDP has increased with energy consumption.
B) The country's GDP has decreased with energy consumption.
C) The country's GDP has increased irrespective of its energy consumption.
D) The country's GDP has decreased irrespective of its energy consumption.

Answer 1

C

Question 2

Apetates, a food processing company, wants to address climate change in their business strategies. Which of the following strategies can Apetates adopt to address the issues regarding climate change and become ecologically sustainable?

A) Operating machines on solar power during off-peak hours
B) Using natural gas as a primary fuel to run the processing units
C) Encouraging employees to work night-shifts instead of day-shifts
D) Avoiding wastewater treatment of the water released from the food processing unit

Answer 2

A

Question 3

Which of the following statements is true of sustainability?

A) It describes a way of doing business that supports the long-term ecological balance of the environment.
B) It favors the extensive use of fossil fuels to fulfill present-day energy demands.
C) It is a way of doing business that guarantees continuous short-term financial growth.
D) It encourages the development of products that are not necessarily eco-friendly.

Answer 3

A

Question 4

Adam, Ryan, Jason, and Stephen argue about the reason behind the fact that developed countries, like the United States and France, continue to see growth with energy consumption. Who among the following provides the most appropriate reason?

A) Adam, who says that the reason is the increased use of natural gas
B) Ryan, who says that the reason is the increased focus on clean energy technologies
C) Jason, who says that the reason is the increased use of nuclear energy
D) Stephen, who says that the reason is the increased focus on conventional thermal energy sources

Question 5

Which of the following statements is true of short-termism?

A) It is largely a creation of stock markets and the modern capitalistic system.
B) It is the sole way of addressing the need for sustainability.
C) It focuses on short-term results but not at the expense of long-term goals.
D) It requires companies to consider the interests of employees, customers, and communities.

Question 6

Zencorp, an information technology firm, is an advocate of sustainability. Which of the following strategies can help Zencorp make its business ecologically sustainable?

A) Encouraging employees to use diesel cars instead of petrol cars
B) Using hard copies of documents instead of soft copies
C) Avoiding energy-efficiency tests of its products to save resources
D) Allowing majority of its workforce to work from home

Question 7

Kidjois, a plastic toy manufacturing company in Belwick, uses bioplastic instead of fossil-fuel plastic to manufacture toys. Because of the use of bioplastic, the manufacturing plant of the company emits considerably less amount of greenhouse gases. In this scenario, it can be said that Kidjois is an advocate of _____.

A) globalization
B) sustainability
C) standardization
D) mercantilism

Question 8

The energy industry of Zaneland, with the support of the government, has set a goal to replace the conventional sources of energy, such as coal, oil, and natural gas with renewable and inexhaustible energy sources, such as solar energy and hydropower, in the next 20 years. It is evident that the energy industry of Zaneland has set a goal to create a _____.

A) clean economy
B) decentralized economy
C) global governance
D) transnational governance

Question 9

The e-commerce sector of Belwick has implemented a paperless billing system that enables the e-commerce companies to provide bills online. This approach was implemented with the aim of reducing the use of paper. It is evident that the e-commerce sector of Belwick aimed to create a(n) _____.

A) monopoly market
B) clean economy
C) centralized economy
D) oligopoly market

Question 10

Power Tree, a thermal power plant, provides electricity to the city of Ipslich by burning coal. It can be said that Power Tree _____.

A) contributes to the development of clean energy sources
B) reduces global warming
C) favors sustainability
D) contributes to the increase in the earth's average temperature

Question 11

Which of the following companies is most likely gravitating toward short-termism?

A) Zencorp, which uses renewable energy sources to supply power to its buildings
B) Widget Corp., which sells its shares in a publicly traded forum to boost profitability
C) Allied Inc., which focuses on its stakeholders and not just its shareholders
D) Instamatic, which weaves a sustainability thread into shareholder and analyst communications

Question 12

Unlike institutional investors, analysts on Wall Street:

A) look at investments in terms of years.
B) are inclined toward sustainable development.
C) focus on long-term results.
D) are entirely focused on quarterly earnings.

Question 13

The graph given below compares the GDP of a country with the country's energy consumption. Analyze the graph and identify a statement that is true for the years 1960-2000.

A) The country's GDP has increased with energy consumption.
B) The country's GDP has decreased with energy consumption.
C) Energy derived from coal contributed the most to the GDP.
D) Energy derived from natural gas contributed the most to the GDP.

Question 14

A _____ is an economy that produces goods and services with environmental benefit.

A) Greenhouse economy
B) Low-nitrogen economy
C) High-emission economy
D) Clean economy

Question 15

Which of the following people in Widget Corp., an information technology company, is most likely the chief sustainability officer?

A) Mark, who is responsible for leading the development and execution of the company's long-term strategy with the sole goal to create shareholder value.
B) Martha, who recruits top information technology professionals from different professional universities.
C) John, who institutes an energy-efficiency review of every hardware and software product manufactured by the company.
D) Julia, who oversees the day-to-day business operations in the company.

Question 16

Instamatic, an information technology company, wants to address climate change in their business strategies. Which of the following strategies can Instamatic adopt to address the issues regarding climate change and become ecologically sustainable?

A) Operating machines on natural gas during off-peak hours
B) Investing substantially in renewable energy sources to generate power for its buildings
C) Encouraging employees to work only from office and not from home
D) Replacing liquid crystal display monitors with cathode ray tube monitors

Question 17

Keyton Tech, an information technology company, reduces its expenditure on research and development by a considerable amount because of the increasing pressure from its investors to increase profitability. From the given information, it is evident that Keyton Tech is gravitating toward _____.

A) short-termism
B) sustainable development
C) globalization
D) decentralization

Question 18

MynTech, a coal mining company, recently faced downtime because of equipment failure. Because of the failure, the company lost 3 days' worth of mining effort. It can be said that the company's ability to produce coal was limited by _____.

A) renewable energy sources
B) value constraints
C) resource constraints
D) nonconventional energy sources

Question 19

Unlike analysts on Wall Street, institutional investors:

A) are entirely focused on quarterly investments.
B) favor short-term results over long-term results.
C) look at investments in terms of years.
D) are not inclined toward sustainable development.

Question 20

Clayton Fabrics manufactures car seats for different automobile manufacturers. The fabric used to make the seats is made from 100% post-industrial materials and renewable soy foam seat bases. This eco-friendly approach to making seats helps the company maintain its competitive advantage over other rivals who use nylon or polyester to make car seats. In this scenario, it is evident that Clayton Fabrics supports _____.

A) centralization
B) globalization
C) sustainability
D) mercantilism

Question 21

Allied Motors, an automobile company, is fighting short-termism. Which of the following strategies should the company adopt to create long-term value?

A) Focusing entirely on quarterly earnings
B) Focusing on the needs of customers, not the ecological environment
C) Addressing the needs of stakeholders, not just shareholders
D) Getting investments solely from analysts on Wall Street

Question 22

Which of the following is most likely to be true of Western companies?

A) They have higher power distance than Eastern companies.
B) They have gravitated toward short-termism.
C) They tend to consider a longer horizon in their decisions than Eastern companies.
D) They look at investments solely in terms of years, not quarters.

Question 23

Most part of a company's stock market value is determined by its:

A) product quality
B) tangible assets
C) brand and reputation
D) machinery and inventory

Question 24

Powell Motors, an automobile manufacturing company, has a stock market value of $20 bn. The market value, for the most part, is affected by:

A) the machinery used to manufacture automobiles.
B) the brand and reputation of the company.
C) the number of employees in the company.
D) the infrastructure of the manufacturing plant.

Question 25

Alton and Co., a sports goods manufacturing company, is fighting short-termism. Which of the following strategies should the company adopt to create long-term value?

A) Focusing entirely on quarterly earnings
B) Focusing on the needs of shareholders, not stakeholders
C) Weaving a sustainability thread into shareholder and analyst communications
D) Getting investments solely from analysts on Wall Street

Question 26

The sustainability consortium aims to reduce the impact of global consumption by:

A) gathering data on the life cycle of consumer products and then putting that information into the hands of relevant companies.
B) developing product standards and common practices for a company.
C) creating a consolidated base of power to influence policymakers, suppliers, and buyers in a company.
D) sharing investments to spread cost and risk in companies.

Question 27

One way to make boards orient more around a long-term perspective is to:

A) get investments solely from analysts on Wall Street
B) focus entirely on quarterly earnings.
C) focus on immediate pay-offs on investments.
D) use an ownership-based governance.

Question 28

When deciding whom to involve in a sustainability initiative, a company should first:

A) conduct due diligence.
B) develop shared language.
C) create entrance strategies.
D) get the board of directors to buy into the collaboration.

Question 29

Adam, an analyst on Wall Street, is one of the major investors in Aerod Inc. If Adam gravitates toward short-termism, which of the following statements is most likely to be true of Adam?

A) He is focused on quarterly earnings.
B) He looks at investments in terms of years.
C) He cares how a company will hold up in a volatile world over years.
D) He is focused on sustainable development instead of immediate pay-offs.

Question 30

Alton & Sons and Prestop Inc. have decided to collaborate with each other to develop a sustainable approach to food processing. After mapping out who will be affected by the initiative, the companies should:

A) conduct due diligence.
B) develop shared language.
C) create entrance strategies.
D) get the board of directors to buy into the collaboration.

Question 31

Practer Inc. aims to collaborate with other companies and achieve sustainability. When deciding whom to involve in its sustainability initiative, Practer Inc. should first:

A) check if its objectives are consistent with the potential partners.
B) map out who will be affected by the initiative.
C) create enter and exit strategies.
D) get the board of directors to buy into the collaboration.

Question 32

Which of the following is a difference between Eastern and Western leaders?

A) Eastern leaders tend to consider a longer horizon in their decisions than Western leaders.
B) Unlike Western leaders, Eastern leaders have gravitated toward short-termism.
C) Unlike Eastern leaders, Western leaders care how a company will hold up in a volatile world over years.
D) Eastern leaders work in an environment with a lower power distance than Western leaders.

Question 33

KetMart, a retailing corporation, aims to be sustainable. Which of the following strategies would help KetMart become a sustainable company?

A) Collaborating with suppliers who are willing to make products that are better for the environment
B) Focusing entirely on immediate pay-offs on investments
C) Focusing on quarterly earnings instead of yearly returns on investments
D) Avoiding due diligence while getting in business with other firms to save time and effort

Question 34

Short-termism in a company can be avoided:

A) if the company focuses on shareholders, not stakeholders.
B) by promoting an understanding that sustainable activities might be good for profits.
C) by asking the board of directors to focus on immediate pay-offs on investments.
D) if the company seeks investments solely from analysts on Wall Street.

Question 35

To avoid short-termism, the board of a company should:

A) ensure that the CEO's pay is tied to achieving innovation and efficiency.
B) focus entirely on quarterly earnings.
C) focus on immediate pay-offs on investments.
D) avoid ownership-based governance.

Question 36

Prampter and Co., a hedge fund, is one of the major investors in Instamatic Inc. If Prampter and Co favors sustainable development, which of the following is true of Prampter and Co?

A) Prampter and Co is entirely focused on quarterly earnings.
B) Prampter and Co is focused on short-term results.
C) Prampter and Co cares only about its shareholders, not its other stakeholders.
D) Prampter and Co cares how a company will hold up in a volatile world over years.

Question 37

Advin Motors, an automobile manufacturing company, decided to collaborate with AlekFabs, a fabric manufacturing company, to create a sustainable approach to manufacture and use fabric in automobiles. Before inviting AlekFabs into the board room, Advin Motors hired a professional facilitator to help the executives understand the jargon AlekFabs uses and bridge the way the two organizations talked about sustainability. It is evident that Advin Motors is _____.

A) conducting due diligence
B) developing shared language
C) creating entrance strategies
D) planning exit strategies

Question 38

Instacart, an e-commerce company, wants to achieve sustainability. Which of the following should be one of the primary goals of the company to become sustainable?

A) Having a single investor, such as a hedge fund
B) Sharing information to help spark innovation
C) Focusing on immediate pay-offs
D) Focusing on quarterly earnings

Question 39

Zeptech, a computer microprocessor manufacturing firm, is gravitated toward sustainability. Which of the following goals should Zeptech consider as one of its primary goals to attain sustainability?

A) Investing substantially on extraction of nonrenewable natural resources
B) Reducing expenditures on research and development
C) Focusing entirely on immediate pay-offs
D) Sharing investments to spread cost and risk

Question 40

One of the differences between analysts on Wall Street and institutional investors is that:

A) analysts on Wall Street favor sustainable development instead of short-term results.
B) institutional investors are entirely focused on quarterly investments.
C) analysts on Wall Street look at investments in terms of years.
D) institutional investors care how a company will hold up in a volatile world over years.

Question 41

_____ is usually the third stage in sustainable innovation.

A) Complying with existing laws
B) Making sustainable value chains
C) Designing sustainable products and services
D) Developing new business models

Question 42

Do you agree that turning to renewable energy sources will not solve all our resource-constraint problems?

Question 43

Evaluate the argument that sustainable innovation can only be achieved by reducing risks.

Question 44

Powersot, a hybrid thermal power plant in Belwick, runs on coal and solar power. Recently, the power plant faced a drop in energy production because of the untimely delivery of coal. To avoid such instances, the company attempts to tweak its operations in a way that solar power can completely compensate for the energy production when coal is unavailable. Based on the given scenario, it is evident that Powersot is:

A) focusing on making a sustainable value chain.
B) deriving energy from fossil fuels.
C) trying to focus on resource constraints.
D) limiting the use of nonconventional sources of energy.

Question 45

Brendon Notebooks, a scholastic stationery manufacturer, manufactures its notebooks from 100% sugarcane waste fiber, which is a rapidly renewable fiber. This approach to manufacturing paper can help reduce the rapid deforestation caused by the pulp and paper industry. On the basis of the given information, it can be said that Brendon Notebooks:

A) has encountered competitive inertia.
B) promotes the use of conventional sources of energy.
C) favors short-termism.
D) designs sustainable products.

Question 46

Evaluate the argument that to develop sustainable products and services, companies need not understand consumer concerns.

Question 47

_____ is usually the first stage in sustainable innovation.

A) Complying with existing laws aimed at protecting the environment
B) Making sustainable value chains
C) Designing sustainable and eco-friendly products and services
D) Developing new business models

Question 48

In the context of collaborative initiatives, which of the following is true of entrance strategies?

A) They help partners know when they've reached an appropriate time to disengage.
B) They help set a framework for what organizations are required to do within a collaboration.
C) Their goal is to provide insights on who will be affected by an initiative to collaborate.
D) Their goal is to check if a company's objectives are consistent with the company's potential partners.

Question 49

Suppose your company is collaborating with another company to achieve sustainable innovation. What steps would you take before creating entrance strategies?

Question 50

To fight resource constraints, a company should:

A) focus on increasing the emission of greenhouse gases.
B) derive energy from fossil fuels.
C) use more renewable sources of energy than nonrenewable sources of energy.
D) use less nonconventional sources of energy than conventional sources of energy.

Question 51

In order to collaborate with Widget Corp. and Zencorp, Instamatic Inc. sets a framework that specifies when each organization is needed in the collaborative effort. It is evident that Instamatic Inc. is _____.

A) conducting due diligence
B) developing shared language
C) creating entrance strategies
D) performing valuation analysis

Question 52

Do you agree that in the long run, globalization will lead to increased economic well-being of the majority of the world's population?

Question 53

Alek Inc. and Allied Tech have worked together toward sustainability for the past 10 years. Because of a difference in their respective visions, the companies plan to disengage from the collaboration. Which of the following will most likely help the companies know when they've reached an appropriate time to disengage?

A) Assessing entry options
B) Developing shared language
C) Creating exit strategies
D) Performing valuation analysis

Question 54

The process of innovating for sustainability starts with companies learning to:

A) recognize opportunities.
B) focus on reducing risks.
C) invest more on nonrenewable energy sources.
D) invest more on conventional thermal energy sources.

Question 55

In the wake of a new law in Zaneland that prohibits companies from using adhesives that are not environment friendly, Gattech Inc., a microprocessor manufacturing firm, collaborates with three other technology companies with the aim of developing an eco-friendly adhesive to stack chips for its microprocessors. After turning compliance into opportunity, Gattech Inc. should next:

A) make short-term investments.
B) focus on resource constraints.
C) design sustainable products and services.
D) develop new business models.

Question 56

If you were the chief sustainability officer of a company, what would be your responsibilities?

Question 57

In the context of collaborative initiatives, which of the following is true of exit strategies?

A) They help partners know when they've reached an appropriate time to disengage.
B) They help set a framework for what organizations are required to do within a collaboration.
C) Their goal is to provide insights on who will be affected by an initiative to collaborate.
D) Their goal is to check if a company's objectives are consistent with the company's potential partners.

Question 58

In the pursuit of sustainable innovation, once companies learn to turn compliance into opportunity and antagonists into allies, the next step is to:

A) focus on quarterly earnings.
B) focus on resource constraints.
C) design sustainable products and services.
D) develop new business models.

Question 59

Jonathan, an analyst on Wall Street, is a capitalist. His investments are limited to companies that give him immediate returns. Do you think Jonathan is gravitated toward short-termism? Justify your answer.

Question 60

Allied Corp., a food processing company, wants to achieve competitive advantage by sustainable innovation. It aims to reduce the use of plastic in food processing. Which of the following should be the company's first step to start the process of sustainable innovation?

A) Complying with existing laws controlling the use of plastic
B) Making value chains that reduce the use of plastic
C) Designing products that do not require plastic packaging
D) Developing new business models that eliminate plastic from the whole process