Question 1

The system of governing a company so that the interests of corporate owners and other stakeholders are protected is known as corporate governance.

Accepted Answer

Corporate governance is the system of rules, practices, and processes by which a company is directed and controlled in order to balance the interests of its shareholders, management, customers, suppliers, financiers, government, and the community. Its aim is to ensure transparency, accountability, and ethical behavior in the management of a company. Thus, corporate governance is aimed at protecting the interests of all stakeholders, not just the owners/shareholders of a company.

Question 2

Rebecca and Donna, owners of Fine Coffee and Pastry Shop, are concerned because Panera Bread is opening a new store just one mile from their shop. Rebecca and Donna know that Panera will be offering similar products; therefore, Panera Bread will be a ____ to Rebecca and Donna.
A) competitor
B) competitive ally
C) strategic ally
D) distributor
E) internal stakeholder

Accepted Answer

Panera Bread opening a store just one mile away offering similar products makes them a direct competitor to Fine Coffee and Pastry Shop.

Question 3

When talking with Shane, a sales manager, she remarked that typically, her employees sincerely and positively overstate their job performance and abilities. This is an example of the ____ effect.
A) overstatement
B) motivated blindness
C) holier-than-thou
D) cheating
E) fudging

Accepted Answer

The holier-than-thou effect refers to the tendency of people to believe themselves to be morally and ethically superior to others. In this case, the sales employees are likely overestimating their abilities and performance out of a desire to see themselves as better than others in their field.

Question 4

To focus on improving company customer service this year, the CEO outlined a list of stakeholders to concentrate on: distributors, local communities, and the mass media. These three groups are ____.
A) external stakeholders
B) developmental stakeholders
C) internal stakeholders
D) vital stockholders
E) interest groups

Accepted Answer

The three groups mentioned (distributors, local communities, and mass media) are all external to the company, meaning they are not employees or directly involved in the operations of the company. Therefore, they are considered external stakeholders.

Question 5

Alonzo, the president of the student class and honor society, has been very busy and did not study for the history test. Although Alonzo is very confident, he realizes that he probably will not do well on the exam and has talked himself into cheating because he feels it is worth it to maintain his strong GPA, which he will need to be accepted by a good college. He tells his friend, "I don't usually do this, but I really have to do it." The cause of Alonzo's behavior is ____.
A) the holier-than-thou effect
B) the deception effect
C) the cheating requirement
D) a depression disorder
E)motivated blindness

Accepted Answer

Motivated blindness occurs when individuals overlook unethical behavior when it is in their interest to remain ignorant. Alonzo justifies cheating to maintain his GPA, which aligns with this concept.

Question 6

An organization's internal stakeholders consist of ___.
A) board of directors, employees, suppliers
B) board of directors, customers, owners
C) customers, families of employees, employees
D) board of directors, employees, owners
E) competitors, the community, suppliers

Accepted Answer

Internal stakeholders are individuals or groups within an organization, and they include the board of directors, employees, and owners. Customers, families of employees, competitors, the community, and suppliers are external stakeholders. Therefore, the best choice is D (board of directors, employees, owners) as it consists of the only internal stakeholders among the options given.

Question 7

After the scandals at WorldCom, Tyco, and Enron, in which company employees lost millions of dollars and their nest eggs, there was less concern for corporate governance and more interest in the development of corporate social responsibility.

Accepted Answer

Corporate governance is the system of governing a company so that the interests of corporate owners and other stakeholders are protected.After the Enron and other scandals,there was a resumed interest in what is known as corporate governance.

Question 8

Amy, a successful banker and educator, has decided to retire, but she is very interested in staying involved with a company "that cares." So when asked to be on its board of directors, she gladly accepted the invitation. As a member of the board, Amy will be involved with the organization's ____.
A) overall strategic goals and approval of major decisions
B) daily company management and employee supervision
C) overall strategic goals and global HR management
D) daily specific company goals and management of a specific department
E) oversight of sales and marketing

Accepted Answer

As a member of the board of directors, Amy will be involved with the organization's overall strategic goals and approval of major decisions. The board is responsible for setting the company's overall direction and approving major decisions, while management handles the daily operations and execution of those plans.

Question 9

Warm Hearts is a nonprofit organization that brings warm meals to older adults and runs errands for its clients; the board of that nonprofit is called the _____.
A) overall board
B) nonprofit trustees or the directors
C) strategic board
D) daily oversight committee
E) board of trustees or board of regents

Accepted Answer

In nonprofit organizations,such as universities or hospitals,the board may be called the board of trustees or board of regents.

Question 10

Every Saturday Mrs. Jones and hundreds of other shoppers visit ABC Market, a grocery store, to buy food for their home or business. These shoppers are _____ to ABC.
A) suppliers
B) community allies
C) competitors
D) customers
E) partners

Accepted Answer

The best choice for the blank is "customers" because they are the ones buying goods from ABC Market.

Question 11

Don, the owner of a fishing business, attended an entrepreneurship workshop that discussed the triple bottom line, which measures an organization's ____ performance.
A) social, environmental, financial
B) financial, diversity, environmental
C) social, synergy, diversity
D) marketing, profit, efficiency
E) social, effectiveness, financial

Accepted Answer

The triple bottom line is a framework that measures an organization's social, environmental, and financial performance. Don learned about this framework during the entrepreneurship workshop, so the best choice is A, which lists those three dimensions. The other choices are not accurate descriptions of the triple bottom line.

Question 12

The marketing director informed his employees that he feels the company needs to improve its relationship with the distributors of the company's products to increase market share because they are part of the ______ environment of the company.
A) strategic
B) focused
C) outlying
D) external
E) task

Accepted Answer

Distributors are part of an organization's task environment,and therefore one of its external stakeholders.

Question 13

As businesses are going green today, sustainability programs have produced environmental benefits, but unfortunately, they have also resulted in higher costs, lower revenues, and at times, have hurt organizations competitively.

Accepted Answer

Today going green has entered the business mainstream,where sustainability programs are producing not only environmental benefits but also cost savings,revenue growth,and competitive advantages.

Question 14

Patsy, a nurse, has decided to start a home health care service to assist with the medical, meal preparation, and light housecleaning needs of older adults. To grow her business, Patsy is focusing her marketing efforts on the older adult population; as she does this, she is involved with the _____ environment.
A) task
B) general
C) internal
D) natural capital
E) strategic allies

Accepted Answer

Patsy's focus on the older adult population indicates that she is involved with the general environment, which includes demographics, cultural trends, economic conditions, and other overarching factors that affect businesses. The task environment includes specific customers, competitors, and suppliers, while the internal environment refers to factors within Patsy's own organization. Natural capital and strategic allies are not relevant in this scenario.

Question 15

When making a decision to purchase a new SUV for their growing family, George and Susan are like most Americans: they are more likely to buy products from companies that will save them money than from organizations that are known to be socially responsible.

Accepted Answer

According to one survey,88% of the respondents said they were more apt to buy from companies that are socially responsible than from companies that are not.

Question 16

Marie and Marti are partners who solely own M and M Florist. As owners, they can ____.
A) claim only limited liability
B) avoid claiming any legal responsibility for M and M
C) claim limited partnership
D) claim an organization as their legal property
E) decide not to pay their stockholders

Accepted Answer

The owners of an organization consist of all those who can claim it as their legal property.

Question 17

The plant manager of a factory that produces tires told Sal, the purchasing manager, to approach the suppliers of the plant to discuss discounts. A supplier to that factory ____.
A) competes for customers or resources
B) helps Sal's company sell its goods and services to customers
C) joins forces with Sal's plant to achieve advantages neither can perform as well alone
D) rescinds tax breaks when firms don't deliver promised jobs
E) provides raw materials, services, equipment, labor, or energy

Accepted Answer

The statement mentions that the supplier provides raw materials, services, equipment, labor, or energy to the factory, indicating that the supplier is a crucial part of the supply chain and therefore provides the necessary resources for the factory to produce and sell its products. Choices A, B, C, and D do not accurately reflect the role of a supplier in this context.

Question 18

Don was recently promoted, and his salary increase includes retirement investment options, so he has decided to get involved with an ESOP. This means Don ____.
A) will be on the company's board of directors
B) will participate in an Externship Supervisors' Oversight Plan
C) will be buying shares of his company's stock
D) is now part of the company's external stakeholders
E) is in charge of an investment group

Accepted Answer

ESOP stands for Employee Stock Ownership Plan. By getting involved with an ESOP, Don will be buying shares of his company's stock as a form of retirement investment.

Question 19

ABC Brothers' cleaning products and equipment are sold to consumers and commercial cleaning companies in Best Supply's janitorial supply and equipment store. ABC relies heavily on Best Supply to help sell its goods and services to customers. Best Supply is a(n) ____ for ABC Brothers' products.
A) competitor
B) distributor
C) customer
D) subsidiary
E) account ally

Accepted Answer

Best Supply is a distributor for ABC Brothers' products, meaning they help sell the products to customers.

Question 20

What mechanism is used to provide a systematic assessment of an organization's triple bottom line?
A) sustainability program
B) code of ethics
C) diversity program
D) financial audit
E) social audit

Accepted Answer

A social audit is a process that provides a systematic assessment of an organization's social, environmental, and economic performance, which in turn covers the triple bottom line. It helps the organization identify areas where it can improve its impact on society and the environment while also meeting its financial objectives. Therefore, a social audit is the most appropriate mechanism for providing a systematic assessment of an organization's triple bottom line.

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

The system of governing a company so that the interests of corporate owners and other stakeholders are protected is known as corporate governance.

Rebecca and Donna, owners of Fine Coffee and Pastry Shop, are concerned because Panera Bread is opening a new store just one mile from their shop. Rebecca and Donna know that Panera will be offering similar products; therefore, Panera Bread will be a ____ to Rebecca and Donna.

When talking with Shane, a sales manager, she remarked that typically, her employees sincerely and positively overstate their job performance and abilities. This is an example of the ____ effect.

To focus on improving company customer service this year, the CEO outlined a list of stakeholders to concentrate on: distributors, local communities, and the mass media. These three groups are ____.

An organization's internal stakeholders consist of ___.

After the scandals at WorldCom, Tyco, and Enron, in which company employees lost millions of dollars and their nest eggs, there was less concern for corporate governance and more interest in the development of corporate social responsibility.

Amy, a successful banker and educator, has decided to retire, but she is very interested in staying involved with a company "that cares." So when asked to be on its board of directors, she gladly accepted the invitation. As a member of the board, Amy will be involved with the organization's ____.

Warm Hearts is a nonprofit organization that brings warm meals to older adults and runs errands for its clients; the board of that nonprofit is called the _____.

Every Saturday Mrs. Jones and hundreds of other shoppers visit ABC Market, a grocery store, to buy food for their home or business. These shoppers are _____ to ABC.

Don, the owner of a fishing business, attended an entrepreneurship workshop that discussed the triple bottom line, which measures an organization's ____ performance.

The marketing director informed his employees that he feels the company needs to improve its relationship with the distributors of the company's products to increase market share because they are part of the ______ environment of the company.

As businesses are going green today, sustainability programs have produced environmental benefits, but unfortunately, they have also resulted in higher costs, lower revenues, and at times, have hurt organizations competitively.

When making a decision to purchase a new SUV for their growing family, George and Susan are like most Americans: they are more likely to buy products from companies that will save them money than from organizations that are known to be socially responsible.

Marie and Marti are partners who solely own M and M Florist. As owners, they can ____.

The plant manager of a factory that produces tires told Sal, the purchasing manager, to approach the suppliers of the plant to discuss discounts. A supplier to that factory ____.

Don was recently promoted, and his salary increase includes retirement investment options, so he has decided to get involved with an ESOP. This means Don ____.

ABC Brothers' cleaning products and equipment are sold to consumers and commercial cleaning companies in Best Supply's janitorial supply and equipment store. ABC relies heavily on Best Supply to help sell its goods and services to customers. Best Supply is a(n) ____ for ABC Brothers' products.

What mechanism is used to provide a systematic assessment of an organization's triple bottom line?