Deck 1: The Business and Society Relationship

Question 1

Some businesses are socially responsible;other businesses do just about anything they want.

Answer 1

True

Question 2

When speaking of business in the collective sense,the textbook will most often be focusing on big business.

Answer 2

True

Question 3

Power is only manifest when it is used purposefully.

Answer 3

False

Question 4

The social contract is the set of rights and duties imposed on citizens by their goverrunent.

Question 5

Stakeholders are the owners of shares in a corporation.

Question 6

Affiuence refers to the level of wealth,disposable income,and standard ofliving of a society.

Question 7

The authors of the textbook lay the primary responsibility for business's problems on the media.

Question 8

A child's assumption that he or she will have a higher standard ofliving than the previous generation is called the revolution of rising expectations.

Question 9

Pluralism is a condition in which there is a concentration of power among society's groups and organizations.

Question 10

Business interacts with only a limited number of stakeholder groups.

Question 11

The common perception of business power is that there is too little of it to provide a balance with other social institutions.

Question 12

The Iron Law of Responsibility states that people who use power wisely will be rewarded with more power.

Question 13

News shows are the only type of programming on television that has contributed to criticism of business.

Question 14

The social contract in the modern era is changing rapidly and dramatically.

Question 15

Common Cause and the U.S.Chamber of Commerce are examples of general purpose interest groups.

Question 16

Ethics refers to issues of right and wrong,fairness,and justice.

Question 17

The percentage of the U.S.population that has earned high school diplomas and college degrees has remained about the same over the last thirty years.

Question 18

Movies depict corporate life as amoral and possibly deadly.

Question 19

The principal internal stakeholders of a corporation are its customers and employees.

Question 20

The business environment in current times can best be described as turbulent.

Question 21

Technology-based advancements and progress in the applied sciences that help achieve a practical purpose is part of a ftnn's

A)social environment.
B)political environment.
C)economic environment.
D)technological environment.

Question 22

Which of the following characteristics of an industry does not add to the creation of visible and controversial social problems?

A)intense advertising
B)creation of pollution
C)geographic location
D)products that affect health

Question 23

Because of the sheer member,and specificity of special interest groups,the groups often

A)collaborate with each other to achieve common goals.
B)sabotage each other's efforts to attain their goals.
C)work at cross-purposes.
D)collude to see that their common interests are emphasized.

Question 24

Decentralization and diversity of power concentrations leads to

A)anarchy.
B)a totalitarian society.
C)a pluralistic society.
D)democracy.

Question 25

The concept of sustainability is derived from the notion of management development.

Question 26

Carrying the idea of a pluralistic society to an extreme leads to

A)anarchy.
B)totalitarian government.
C)a special-interest society.
D)a free market economy.

Question 27

The sheer numbers of relationships that business has with other segments of society indicate the of its social environment.

A)simplicity
B)size
C)divisiveness
D)complexity

Question 28

Gross national product,inflation,interest rates,and unemployment rates are included in a finn's

A)social environment.
B)economic environment.
C)political environment.
D)technological environment.

Question 29

Spheres of power describe the arenas in which power may be utilized.

Question 30

Which of the following is not a weakness of pluralism?

A)prevention of concentrations of power
B)pursuit of self-interest
C)overlapping goals,causing confusion about which groups best serve particular interests
D)emphasis on conflict

Question 31

A purposeful aggregation of people who represent a common cause or share common beliefs is called a(n)

A)special interest group.
B)general interest group.
C)interest group.
D)clique.

Question 32

The collection of private,commercially oriented organizations,ranging in size from sole proprietorships to large corporations is referred to as

A)the third sector.
B)goverrnnent.
C)business.
D)the free market economy.

Question 33

Which of the following is not listed as a general issue involving social or ethical ramifications within the relationship between business and society?

A)downsizing pension programs
B)toxic waste disposal
C)insider trading
D)death penalties

Question 34

Major institutions in a pluralistic,special-interest society will inevitably receive

A)pra1se.
B)special favors.
C)scmtiny and criticism.
D)tax advantages.

Question 35

Segments of business's macroenvironment include all of the following except

A)the social environment.
B)the natural environment.
C)the economic environment.
D)the political environment.

Question 36

Which of the following is not a factor in the social environment that has lead to the current climate of criticism of business?

A)affluence and education
B)the revolution of rising expectations
C)an entitlement mentality
D)all of these choices are factors leading to criticism of business

Question 37

The processes by which laws are enacted and government officials are elected are part of the

A)social environment.
B)economic environment.
C)political environment.
D)technological environment.

Question 38

The demographics,lifestyles,and social values of a society determine the firm's

A)social environment.
B)economic environment.
C)political environment.
D)technological environment.

Question 39

Strengths of pluralism include all of the following except

A)pursuit of self-interest.
B)prevention of concentrations of power.
C)a built-in set of checks and balances.
D)maximization of freedom of expression.

Question 40

A community,nation,or broad grouping of people having common traditions,values,institutions,and collective activities and interests is a

A)society.
B)culture.
C)population.
D)network.

Question 41

A gap between society's expectations of social conditions and the current social realities is recognized as

A)a social problem.
B)distributive justice.
C)the revolution of rising expectations.
D)inevitable reality.

Question 42

Which of the following is not a sphere of power indicated in the text?

A)economic
B)technological
C)political
D)intermediate

Question 43

The macro level of business power resides in

A)the Federal goverrnnent.
B)the overall corporate system.
C)corporate CEOs.
D)particular industries.

Question 44

An entitlement mentality is

A)a necessary outgrowth of the welfare system.
B)an outgrowth of the revolution of rising expectations.
C)the idea that one has to work for what one gets.
D)the idea that each citizen owes something to society.

Question 45

The is a result of the growing numbers of individuals and groups who see themselves as having been victimized by society.

A)Rights Movement
B)Entitlement Mentality
C)Revolution of Rising Expectations
D)Victimization philosophy

Question 46

CEOs such as Virginia Rometty ofiBM or Tim Cook of Apple hold which level of power?

A)macro
B)micro
C)individual
D)intermediate

Question 47

The belief that each succeeding generation should have a higher standard of living than its predecessor and that major institutions should continually improve is known as

A)the revolution of rising expectations.
B)the iron cage of rationality.
C)the iron law of oligarchy.
D)the soft bigotry of low expectations.

Question 48

The government,consumers,and members of the community are examples of

A)stockholders.
B)the technological envirornnent.
C)external stakeholders.
D)primary stakeholders.

Question 49

Which oftbe following is not an element oftbe social contract?

A)laws
B)employment contracts
C)regulations
D)shared understandings

Question 50

Stakeholders include all of the following groups except

A)owners.
B)employees.
C)customers.
D)all of these are stakeholder groups.

Question 51

The set of two-way understandings that characterize the relationships between major social institutions is called the

A)implied contract.
B)unilateral binding accord.
C)social contract.
D)procedural justice agreement.

Question 52

Television raises our level of awareness about business in all of the following ways except

A)news programs.
B)prime-time programs.
C)pay-per-v1ew programs.
D)commercials.

Question 53

An internal stakeholder is a person or group who

A)exist outside the boundaries of the finn.
B)is located in the same country in which the firm in located.
C)is defmed as an "insider" in laws regulating fmancial markets.
D)is "inside" the company,such as employees and owners.

Question 54

The ability to produce an effect or influence a situation is known as

A)authority.
B)abuse.
C)power.
D)dictatorship.

Question 55

"In the long run,those who do not use power in a manner which society considers responsible will tend to lose it" is the description of

A)The Iron Law of Oligarchy.
B)The Iron Cage of Rationality.
C)The Iron Law of Responsibility.
D)The Peter Principle.

Question 56

Movies are a significant source of business criticism because

A)corporations are seen as powerful,profit-seeking enterprises that have no redeeming values.
B)corporations are depicted as moral.
C)corporations represent free enterprise undoomed.
D)businesses are not greedy.

Question 57

The levels of power include all of the following except

A)the macro level.
B)the micro level.
C)the institutional level.
D)the individual level.

Question 58

The average level of formal education in the United States is

A)nsrng.
B)dropping.
C)staying about the same.
D)unknown.

Question 59

The business power wielded by an individual finn is known as

A)macro level power.
B)intermediate level power.
C)micro level power.
D)individual level power.

Question 60

The intermediate level of business power is found in

A)corporate headquarters.
B)the boards of individual corporations.
C)groups of corporations acting in concert.
D)medium-sized corporations.

Question 61

The authors discuss the rights movement as a contributing factor in the climate that is critical of business.What are
"rights?"

Question 62

If "rights" are the entitlement to certain life chances and freedom from certain limitations that are accorded to persons simply because they have been born and are alive,what else does the existence of rights imply?

Question 63

The most important stakeholders of a business are typically its

A)employees.
B)government.
C)consumers.
D)owners.

Question 64

Explain the role that television plays in creating a climate critical of business.

Question 65

The authors of the textbook say that,at a general level,they will be discussing the role of business in society.What do they mean by "the role of business in society?"

Question 66

The examination of business and its relationship to society typically focuses on

A)big business and highly visible industries.
B)all business and all industries.
C)small business and highly visible industries.
D)none of these.

Question 67

The textbook says that when power gets out of balance,other forces are brought to bear so that balance is restored.
Name some of the other forces that are used to balance business power.Describe how effective each of those other forces is in combating business power.

Question 68

Using the managerial approach discussed in the textbook,discuss the topic of ecological damage and sustainability as they relate to business.

Question 69

The authors state,"the philosophy of victimization is intimately related to and sometimes inseparable from the rights movement and the entitlement mentality." Explain how these three concepts are related.

Question 70

The key elements of a pluralistic society are decentralization and diversity of power.Using what you know about
American society,do you consider it to be a pluralistic society? Why or why not?

Question 71

What is the difference between internal and external stakeholders?

Question 72

Explain the rationale that is the foundation of The Iron Law of Responsibility.

Question 73

Describe what the authors mean by the managerial approach taken in the textbook.

Question 74

When a business affects the life of a member of the surrounding community without meaning to,the company has wielded

A)coerc1ve power.
B)deliberate power.
C)hidden power.
D)unintentional power.

Question 75

Choose a particular corporation and describe the power it wields in different spheres.

Question 76

Sustainability,at a simple level,is about business's:

A)ability to survive and thrive over the long term
B)approach to only the natural environment
C)preservation of the environment in the present generation
D)ability to meet the needs of the present while compromising future generations

Question 77

Explain what is meant by spheres of power.