Deck 12: Business Influence on Government and Public Policy.

Question 1

Lobbyists are generally interested in the common good.

Answer 1

False

Question 2

PACs are uniformly well thought of in American society.

Answer 2

False

Question 3

Government is not a central stakeholder of business.

Answer 3

False

Question 4

Today, many major U.S. corporations avoid paying taxes by utilizing offshore tax loopholes.

Question 5

The argument in favor of unlimited corporate political spending is based on the right to free speech.

Question 6

The way in which most legislation gets passed is through special-interest politics.

Question 7

Because of the difficulty in coordinating the effort, grassroots lobbying is no longer used extensively.

Question 8

For large corporations today, political involvement is imperative.

Question 9

Unlimited corporate political spending was made legal by the Citizens United decision of the U.S. Supreme Court.

Question 10

The money that PACs donate to political candidates has brought about great benefit to the political system.

Question 11

Recent Supreme Court decisions have restricted the activity of PACs

Question 12

Lobbyists are affectionately known as "influence peddlers."

Question 13

PACs allow labor to organize their giving.

Question 14

A political strategy for public activism is keeping an issue off the public agenda by providing no information to policymakers.

Question 15

Leadership PACs are connected PACs.

Question 16

Lobbying takes place only at the federal government level.

Question 17

Because it represents a homogenous group of businesses, the NFIB is able to present a unified message when lobbying Congress.

Question 18

Individuals are less restricted in their contributions to political candidates than are PACs.

Question 19

An umbrella organization has a broad base of membership that represents businesses in several different industries.

Question 20

To be effective, grassroots lobbying must be genuine.

Question 21

Using the Internet to communicate with grassroots supporters and enable them to contact their legislators is termed

A) grassroots lobbying.
B) astroturf lobbying.
C) cyberadvocacy.
D) company lobbying.

Question 22

Lobbying organizations that represent the collective business interests of the United States are called

A) umbrella organizations.
B) trade associations.
C) labor unions.
D) company lobbying.

Question 23

One recommendation to make cyberadvocacy more effective is for advocates to

A) social media.
B) wireless internet.
C) smart phones and tablets.
D) creation of apps.

Question 24

Astroturf lobbying is massively regulated.

Question 25

When a firm advocates for its own special interest, it is

A) acting as an umbrella organization.
B) representing its trade association.
C) harming it labor union.
D) company lobbying.

Question 26

Business lobbyists do all of the following things for their clients except

A) establish communications channels with regulatory bodies.
B) protect firms against surprise legislation.
C) audit the effects of passed legislation.
D) help draft legislation.

Question 27

The central product of the new breed of lobbyist is

A) influence.
B) access.
C) advice.
D) information.

Question 28

One strategy for corporate political action is constituency building.

Question 29

Lobbying efforts that do not represent the genuine concerns of the citizens supposedly involved is called

A) grassroots lobbying.
B) astroturf lobbying.
C) cyberadvocacy.
D) company lobbying.

Question 30

Lobbying takes place at all of the following levels except

A) umbrella organizations.
B) PACs.
C) trade associations.
D) company lobbying.

Question 31

Participation in the formulation and execution of public policy at various levels of government is

A) available only to individual citizens.
B) required by the constitution.
C) the definition of lobbying.
D) the definition of political involvement.

Question 32

One effective strategy used by the NRA was its shutting down of scientific studies involving gun injuries.

Question 33

When a business assumes an advocacy role for its interests, it is

A) doing what is normal and expected.
B) breaking the law.
C) operating at the trade association level.
D) allowing government to influence it.

Question 34

The power of businesses to drive the political agenda in Washington, D.C. is now

A) subject to special interests.
B) virtually unchecked.
C) largely impeded.
D) in government's interest.

Question 35

Which of the following is not usually a function that lobbyists serve for their clients?

A) monitoring legislation
B) helping members of Congress get reelected
C) organizing grassroots efforts
D) helping former members of Congress find jobs

Question 36

The process of mobilizing individual citizens who might be most directly affected by legislative activity to political action is called

A) grassroots lobbying.
B) astroturf lobbying.
C) cyberadvocacy.
D) company lobbying.

Question 37

Lobbyists often provide all of the following services, except:

A) create slick advertisements.
B) conduct indirect-mail campaigns.
C) provide access to lawmakers.
D) draft legislation.

Question 38

Which of the following is not a major approach that business uses to influence government?

A) lobbying
B) PACs
C) coalition building
D) vigilance

Question 39

Lobbying organizations that are composed of many firms in a given industry or line of business are called

A) umbrella organizations.
B) trade associations.
C) labor unions.
D) company lobbying.

Question 40

The process of influencing public officials to promote or secure the passage or defeat of legislation is known as

A) bribery.
B) activism.
C) lobbying.
D) suffrage.

Question 41

The National Federation of Independent Businesses (NFIB) attributes its newfound power to

A) the growth of multinational companies.
B) globalization.
C) its new status as a trade association.
D) the growth of small businesses in business news.

Question 42

Key elements of corporate political disclosure and accountability include all of the following except

A) lobbying.
B) disclosure.
C) policies.
D) oversight.

Question 43

The National Association of Manufacturers (NAM):

A) receives accolades from its small and medium-sized members for focusing on their particular needs.
B) advocates for protectionist trade policies.
C) is the preeminent U.S. manufacturers association as well as the nation's largest industrial trade association.
D) is credited with helping create the gain in manufacturing jobs.

Question 44

Which of the following is not an umbrella organization?

A) Chamber of Commerce
B) National Association of Manufacturers
C) Pharmaceutical Research and Manufacturers of America
D) Business Roundtable

Question 45

One of the ways that the Chamber of Commerce has regained its power is by

A) making large campaign contributions on its own behalf.
B) dispensing favors to individual businesses that do not want their company name associated with lobbying efforts.
C) hiring outside lobbyists to help it attract more members.
D) focusing on international trade issues.

Question 46

The top PAC contributor during 2015-2016 was:

A) Honeywell International
B) Teamsters.
C) Service Employees International Union.
D) Lockheed Martin.

Question 47

Studies of financial performance outcomes on political spending

A) show a strong correlation between contributions to PACs, and corporate financial performance.
B) show a weak correlation between contributions to PACs, and corporate financial performance.
C) are inconclusive.
D) apply only to political outcomes.

Question 48

The Golden Rule of Politics is

A) do unto others before they do unto you.
B) do unto others as you would want done to you.
C) he who has the gold, rules.
D) do unto others as they would want done to them.

Question 49

The primary focus of the Business Roundtable is

A) free trade policies.
B) opposing shareholder empowerment.
C) the economic well-being of the nation.
D) executive compensation.

Question 50

Political accountability is:

A) arguing against corporate political spending.
B) making direct financial contributions.
C) raising unlimited amounts of money to support a political candidate.
D) responsibility for political actions and a willingness to answer for them.

Question 51

The channels through which corporations can make political contributions are.

A) limited.
B) many and varied.
C) difficult to navigate.
D) primarily tax loopholes.

Question 52

After Citizens United, an explosion of money created:

A) a campaign spending system that lets every citizen participate equally with corporations.
B) a system that is no holds barred.
C) a system that ignores corporate money
D) None of these is true.

Question 53

The principal instruments through which business uses its financial resources to influence government are

A) umbrella organizations.
B) political action committees.
C) trade associations.
D) lobbyists.

Question 54

Distinct groups or parties that realize they have something in common, so that it makes sense for them to join forces, typically form

A) joint ventures.
B) partnerships.
C) coalitions.
D) limited liability corporations.

Question 55

Corporations which donate to PACs may encounter.

A) leadership problems.
B) agency problems.
C) coalition problems.
D) political problems.

Question 56

Which of the following is not a level at which businesses lobby?

A) individual company.
B) sectoral trade associations.
C) umbrella trade associations.
D) All of these are levels at which businesses lobby.

Question 57

Political contributions from undisclosed donors are called:

A) soft money
B) hard money
C) easy money
D) dark money

Question 58

The Business Roundtable is an association of

A) Fortune 500 companies.
B) CEOs of leading companies.
C) leading consulting firms.
D) human resource executives.

Question 59

Universities do more lobbying when congressional appropriations committee members serve the districts in which they are located. This targeted lobbying is:

A) successful
B) unsuccessful.
C) mixed.
D) untested.

Question 60

In lobbying, a trade association often uses

A) written phone banks.
B) grassroots lobbying support.
C) lagging promotion.
D) limited spending.

Question 61

Provide a short answer to each of these questions. Be sure to fully explain your answer.
What has been the impact of the Citizens United and Speechnow decisions on campaign funding?

Question 62

Utilize the knowledge you have gained to respond to the following essay questions. Your answers should state your position and use logical arguments and content from this and other chapters in the textbook to support it.
Suppose that tobacco companies are faced with the threat of legislation that would make all tobacco products illegal to sell. How would these companies keep this issue off the public agenda and out of the limelight?

Question 63

Provide a short answer to each of these questions. Be sure to fully explain your answer.
The Chamber of Commerce has reinvigorated itself partially by representing the interests of individual companies that do not want their names attached to certain lobbying efforts. Certain coalitions also provide companies with this anonymity. Why would a company want to keep its name out of the public eye in lobbying efforts? and what resulting impacts has this had for them?

Question 64

Utilize the knowledge you have gained to respond to the following essay questions. Your answers should state your position and use logical arguments and content from this and other chapters in the textbook to support it.
Should PACs be outlawed? Why or why not?

Question 65

Green rankings can be misleading because:

A) they focus on compliance with regulations.
B) they focus on operational impacts.
C) they focus on overall practices, while ignoring the firm's political advocacy activities.
D) All of these are correct.

Question 66

Provide a short answer to each of these questions. Be sure to fully explain your answer.
What can be done to limit the influence of money on the political process?

Question 67

Provide a short answer to each of these questions. Be sure to fully explain your answer.
The National Association of Manufacturers (NAM) experiences conflict among its members over the question of free trade among nations. Why is this a contentious issue for NAM members?

Question 68

Provide a short answer to each of these questions. Be sure to fully explain your answer.
What's the danger of a company not being able to define a public issue.

Question 69

The relationship between Congress and lobbying firms has been referred to as:

A) cordial.
B) friendly.
C) a back door.
D) a revolving door.

Question 70

Provide a short answer to each of these questions. Be sure to fully explain your answer.
Describe the role of political activity to the success of business.

Question 71

Utilize the knowledge you have gained to respond to the following essay questions. Your answers should state your position and use logical arguments and content from this and other chapters in the textbook to support it.
The textbook notes that Rep. Billy Tauzin of Louisiana, chief architect of the new Medicare prescription drug law, has received a lucrative job lobbying for the pharmaceutical industry. News commentators have suggested that he has already earned his salary because the Medicare bill is expected to provide windfall profits for the drug companies. Chapter 10 said that one of the reasons government regulates business is to control excess profits. Are "windfall" profits for the pharmaceutical industry "excessive?" If so, how can we reconcile government's efforts to regulate against excess profits with Tauzin's ability to draft legislation that provides windfall profits?

Question 72

Provide a short answer to each of these questions. Be sure to fully explain your answer.
Lobbyists often show legislators the benefits and detriments of complex legislation. Discuss the wisdom of allowing lobbyists to perform this function.

Question 73

Utilize the knowledge you have gained to respond to the following essay questions. Your answers should state your position and use logical arguments and content from this and other chapters in the textbook to support it.
Microsoft was able to effectively defend against an antitrust suit by the United States, but lost a similar case in the European Union. The European Commission charged that Microsoft exploited its monopoly position in several foreign countries. Investigate the resolution of this case.
Also, how did Microsoft take advantage of its win in the U.S.?

Question 74

Utilize the knowledge you have gained to respond to the following essay questions. Your answers should state your position and use logical arguments and content from this and other chapters in the textbook to support it.
Lobbyists have been identified as having very narrow self-interests. Apparently some of these interests go no further than lining their own pockets, with no regard for their clients' needs. Research the activities of Jack Abramoff and Michael Scanlon in connection with their representation of several Native American tribes and their gambling casinos.

Question 75

Provide a short answer to each of these questions. Be sure to fully explain your answer.
Federal laws require a waiting period of one year before former government officials can discuss private business matters with anyone in the White House. Why does this provision exist? Is one year a sufficient waiting period?

Question 76

Provide a short answer to each of these questions. Be sure to fully explain your answer.
Why might PACs lose their effectiveness?

Question 77

Provide a short answer to each of these questions. Be sure to fully explain your answer.
Are the arguments for PACs more compelling than those against these organizations? Explain your position.

Question 78

To fight for tort reform, the U.S. Chamber of Commerce established:

A) The Institute for Tort Reform.
B) The Institute for Legal Reform.
C) The U.S. Chamber for Tort Reform.
D) The American League for Tort Reform.

Question 79

Provide a short answer to each of these questions. Be sure to fully explain your answer.
Why should we be vigilant of possible abuses of power or violations of sound ethics as we investigate the political influence of business?