Deck 2: New Venture Options: Do You Want to Start a New Business, Buy One, Be a Franchisee, or a Corporate or Nonprofit Entrepreneur

Question 1

The power of stakeholders has risen over the years.

Answer 1

True

Question 2

A/n _______is a major unexpected event that has a large negative consequence.

A)crisis
B)strategy
C)failed plan
D)regulation
E)incentive

Answer 2

A

Question 3

Which of the following is not true of crisis communication?

A)Often, a company may have only minutes to contain a crisis.
B)With the Internet and cable television, the world often knows about a crisis before some managers and the employees.
C)Managers usually have hours or even days to contain a crisis.
D)it is important to balance the desire to say something right away with the need to get the facts.
E)Company officials must be prepared to issue an initial statement to the media and other key stakeholder groups.

Answer 3

C

Question 4

What are the 5 I's of strategic analysis, in proper sequence?

A)Issue identification, interaction strategies, interested strategic stakeholders, incentive of stakeholders, information-objectives.
B)Issue identification, interested strategic stakeholders, incentive of stakeholders, information-objectives, interaction strategies.
C)Issue identification, interested strategic stakeholders, information-objectives, integrate market and nonmarket strategies, interaction strategies.
D)Issue identification, incentive of stockholders, interested strategic stakeholders, information-objectives, interaction strategies.
E)None of these are correct.

Question 5

Through a/n __________ process, individuals develop and use critical thinking skills to analyze business issues and make better decisions for their personal and professional lives.

A)strategic analysis
B)default planning
C)probationary
D)identification
E)SWOT

Question 6

Which of the following is not an element of determining the incentives of stakeholders?

A)Legitimacy
B)Power
C)Urgency
D)Age of majority stakeholder
E)Likelihood of stakeholder action

Question 7

Which of the following are true about public affairs activities?

A)It is not concerned with stakeholders.
B)It refers to how businesses interact with stakeholders.
C)During PA functions, managers must be ethical, and unethical behavior should be reported through whistle blowing.
D)It is concerned with firm stakeholder relationships.
E)Managers usually do not practice ethical behavior when dealing with the public.

Question 8

Which of the following could be considered Public Affairs statements?

A)"Quality is Job 1."
B)"We will not seek an unfair advantage over our competitors."
C)"Save money, live better."
D)"Finger-lickin' good."
E)"Because you're worth it."

Question 9

What are the three phases of issues management?

A)Scanning the environment to identify issues and trends that will affect society.
B)Assuming that last year's issues have been resolved and this year's issues will be similar.
C)Using the same categorization process for identifying issues as your competitors do.
D)Evaluating the impact issues will have on the firm and ranking issues by priority to the firm.
E)Conducting a strategic analysis to develop strategies for dealing with high-priority public affairs issues.

Question 10

Which of the following would be stages of crisis management?

A)Developing a crises team with a mix of representatives from all sectors of the organization to deal with the crisis.
B)Conducting a risk assessment to determine potential crises, monitoring the event to prevent it from becoming a crisis, and planning how to deal with a crisis if it occurs.
C)Implementing a plan and communicating to acknowledge or admit to the crisis, state actions you are taking, and stating how you plan to avoid a repeat crisis in the future.
D)Analyzing the organization's effectiveness in managing the crisis, with a focus on doing a better job of preventing and managing future crises.
E)Weeding out employees who caused the disaster.

Question 11

Which of the following would be an "A" of communication during a crisis?

A)Assume that a competitor or stakeholder was at fault and deny liability.
B)Advise managers to deny the cause of the crisis.
C)Acknowledge the crisis happened.
D)Action to tell the public what is being done.
E)Avoid future events.

Question 12

What are included in the I's of strategic analysis?

A)Issue identification
B)Interface with competition
C)Interested strategic stakeholders
D)Incentive of stockholders
E)Interaction strategies

Question 13

Which statements about the issue life-cycle stages with the strategic focus for each stage are correct?

A)Identification and formation of the issue and public sentiment.
B)Interested stakeholder formation.
C)Issue brought to business for voluntary action.
D)Legislative and Congressional formation.
E)Enforcement and litigation.

Question 14

Identify six options for starting a new venture.

Question 15

Describe three ways in which an entrepreneur can obtain existing businesses.

Question 16

Discuss three ways of assessing value to a business.

Question 17

Discuss the main advantages and disadvantages of franchising.

Question 18

Identify and describe two types of franchising.

Question 19

Who does the textbook indicate would be a good choice to head a crisis management team?

A)Line supervisors
B)All regional or division managers
C)Chairman of the Board of Directors
D)Senior vice presidents
E)CEO

Question 20

_________ is a public affairs management approach to identifying, monitoring, analyzing, and selecting public issues that may warrant nonmarket strategies.

A)Strategic management
B)Issues management
C)Management by objective
D)Public affairs management
E)Threat assessment

Question 21

Stakeholder theory is a popular area of research.

Question 22

Firms that are less likely to be active in PA management are those that are significantly affected by government.

Question 23

Corporate public policies are general guidelines to influence how employees will interact with stakeholders.

Question 24

Issues management is used to anticipate and respond to both threats and opportunities.

Question 25

A strategic plan can be successful even though the company does not monitor the results.

Question 26

Some companies use issues management software to measure PA efforts.

Question 27

A crisis management team is usually led by a junior-level supervisor when the event actually happens.

Question 28

Proper communication can help to maintain a positive company and brand reputation.

Question 29

The sooner the issue is identified (often through issues management), the more time the business has to plan for and deal with it.

Question 30

Only products, not issues, go through a life cycle.

Question 31

Developing stakeholder public policies does not really require an understanding of stakeholders because many stakeholder entities have similar structure and culture.

Question 32

Even within the business, society, and government categories, different stakeholders can have different expectations, concerns, and requests for firm action to meet their special interest.

Question 33

Which statement best describes balancing stockholder and other stakeholder interests?

A)Managers have a responsibility to make a profit for stockholders while operating in a legal and ethical manner to maximize the benefits to entities other than stakeholders.
B)Managers have a responsibility to make a profit for stockholders while operating in a legal and ethical manner and not take advantage of other stakeholders.
C)Managers should use some of the business profits to help society.
D)Managers' only responsibility is to stockholders.
E)None of these statements are correct.

Question 34

Which of the following is true of the traditional stockholder approach?

A)It focused on being socially responsible.
B)It is the best model for successful businesses today.
C)Managers years ago believed that generating long-term value depended on the needs of many stakeholders.
D)The paradigm has shifted from stakeholder to stockholder in recent years.
E)It focused on meeting the needs of the owners and maximizing profits without regard for other stakeholders.

Question 35

_______ stakeholders are critically affected by firm action, and/or they can affect firm performance.

A)Strategic
B)Preferred
C)Consumer
D)Critical
E)Management

Question 36

Which statement about public affairs and issues management is not correct?

A)Public affairs (PA) management is the process of developing corporate public policies and strategies regarding how the business will interact with stakeholders in the business, social, and government environments.
B)Issues management is a public affairs management approach to identifying, monitoring, analyzing, and selecting public issues that warrant nonmarket strategies.
C)Issues management is broader in scope.
D)None of these statements are correct.
E)All of these statements are correct.

Question 37

Which of the following is not true of public affairs management?

A)PA management policies and strategies are part of the overall nonmarket strategy, which must be integrated with market strategies.
B)Many companies have created specialized departments, with titles such as Public Affairs Department, to manage PA.
C)All employees need to view PA as part of their day-to-day work, rather than the job of PA professionals.
D)PA has many activities and functions that must be managed effectively for the business to be successful.
E)PA is not used in large corporations today.

Question 38

List at least four advantages and four disadvantages of corporate entrepreneurship.