Question 1

The __________ is an advocacy group that has commended Disney's new advertising and marketing guidelines for children.

Accepted Answer

A)  Alliance to Ban Advertising Targeting Children 
B)  Protect the Children Foundation 
C)  Center for Science in the Public Interest 
D)  Group for Ethical Marketing Practices 
A)  Alliance to Ban Advertising Targeting Children 
B)  Protect the Children Foundation 
C)  Center for Science in the Public Interest 
D)  Group for Ethical Marketing Practices

Question 2

Fact Pattern 1-1Susan, the CEO of ABC Company, which was involved in the production and sale of hair care products, decided to hire new employees to develop new product lines for a planned expansion into the dog shampoo arena. She was concerned, however, that the employees specializing in canine products might leave at some point, taking company secrets with them for use in competition with ABC. She, therefore, required that the employees sign contracts containing covenants not to compete. Susan also consulted her in-house counsel, Sam, regarding the effect of some new regulations involving the use of certain chemicals in shampoo and conditioner. Sam told her, however, to ignore the regulations until some type of investigation of the company was started. Sam says that more than likely no one will ever check to see whether or not ABC is in compliance. Susan disagrees with his advice and decides to seek other counsel.
-Refer to Fact Pattern 1-1.Assuming that Susan seeks to be a legally astute manager,which of the following is true regarding the advice given by Sam to ignore the regulations pending an investigation?

Accepted Answer

A)  Sam is correct that it is unlikely that any investigation will ever occur and that the regulations may be safely ignored. 
B)  Sam is correct only if ABC has not had past investigations because if past investigations have occurred, it is more likely that the company will be the target of future investigations. 
C)  Sam is incorrect but only because safety regulations are concerned. 
D)  Sam is incorrect because a legally astute manager will take a proactive approach to regulations. 
A)  Sam is correct that it is unlikely that any investigation will ever occur and that the regulations may be safely ignored. 
B)  Sam is correct only if ABC has not had past investigations because if past investigations have occurred, it is more likely that the company will be the target of future investigations. 
C)  Sam is incorrect but only because safety regulations are concerned. 
D)  Sam is incorrect because a legally astute manager will take a proactive approach to regulations.

Question 3

__________ is a type of relationship building lobbying that is prevalent in China.

Accepted Answer

A)  Xantu 
B)  Olaying 
C)  Guanxi 
D)  Quinta 
A)  Xantu 
B)  Olaying 
C)  Guanxi 
D)  Quinta

Question 4

Exhibit 1.5 indicates that the protection of private property rights is one way to promote economic growth within a society.

Accepted Answer

A) True 
 B)False

Question 5

Researchers found a statistically significant inverse relationship between a country's economic prosperity,as measured by the per capita gross domestic product,and the country's judicial independence.

Accepted Answer

A) True 
 B)False

Question 6

Law is not just a static external force acting upon managers and their firms; rather law and organizations are "endogenously coevolutionary."

Accepted Answer

A) True 
 B)False

Question 7

Which of the following is true regarding a comparison of the law of the United States and the law of the European Union?

Accepted Answer

A)  Laws of the United States and the European Union differ in regard to consumer privacy and emissions standards but are similar in regard to chemical usage and accounting standards. 
B)  Laws of the United States and the European Union differ in regard to consumer privacy, emissions standards, and chemical usage but are similar in regard to accounting standards. 
C)  Laws of the United States and the European Union differ in regard to consumer privacy, emissions standards, chemical usage, and accounting standards. 
D)  Laws of the United States and the European Union are similar in all significant areas involving business regulation and vary in only minor respects. 
A)  Laws of the United States and the European Union differ in regard to consumer privacy and emissions standards but are similar in regard to chemical usage and accounting standards. 
B)  Laws of the United States and the European Union differ in regard to consumer privacy, emissions standards, and chemical usage but are similar in regard to accounting standards. 
C)  Laws of the United States and the European Union differ in regard to consumer privacy, emissions standards, chemical usage, and accounting standards. 
D)  Laws of the United States and the European Union are similar in all significant areas involving business regulation and vary in only minor respects.

Question 8

The ____ approach to business and society introduced in the text is a descriptive framework that integrates legal and societal considerations with mainstream theories of competitive advantage and social responsibility.

Accepted Answer

A)  Integrative 
B)  Systems 
C)  Proactive 
D)  Economic 
A)  Integrative 
B)  Systems 
C)  Proactive 
D)  Economic

Question 9

By __________,managers help shape the legal environment in which they do business.

Accepted Answer

A)  lobbying legislators 
B)  forming coalitions 
C)  refusing to follow laws viewed as unneeded by company officials 
D)  lobbying legislators, forming coalitions, and but not by refusing to follow laws viewed as unneeded by company officials 
A)  lobbying legislators 
B)  forming coalitions 
C)  refusing to follow laws viewed as unneeded by company officials 
D)  lobbying legislators, forming coalitions, and but not by refusing to follow laws viewed as unneeded by company officials

Question 10

A legally astute manager understands that legal analysis is often ambiguous.

Accepted Answer

A) True 
 B)False

Question 11

Insurance policies may help firms manage risk.

Accepted Answer

A) True 
 B)False

Question 12

Under the resource-based view of a firm,when can a firm's resources be a source of sustained competitive advantage?

Accepted Answer

When they are valuable,rare,an

Question 13

According to the Systems Approach to Business and Society in Exhibit 1.1,the __________ is at the center of the societal context.

Accepted Answer

A)  Competitive Environment 
B)  Firm's Resources 
C)  Public Law 
D)  Top Management Team 
A)  Competitive Environment 
B)  Firm's Resources 
C)  Public Law 
D)  Top Management Team

Question 14

Based on Exhibit 1.6,which of the following is NOT a way in which U.S.law protects workers?

Accepted Answer

A)  Through regulating certain terms and conditions of employment 
B)  Through requiring the employer to provide certain benefits 
C)  Through protecting civil rights in the workplace 
D)  Through requiring the provision of educational opportunities to workers 
A)  Through regulating certain terms and conditions of employment 
B)  Through requiring the employer to provide certain benefits 
C)  Through protecting civil rights in the workplace 
D)  Through requiring the provision of educational opportunities to workers

Question 15

J.P.Morgan Chase's "Sons and Daughters" hiring program,involving hiring children of China's ruling elite,was approved by the United States Department of Justice and the Securities Exchange Commission.

Accepted Answer

A) True 
 B)False

Question 16

In CASE 1.1Sorrell v.IMS Health Inc.,drug manufacturers challenged as unconstitutional a Vermont statute prohibiting pharmacies form selling prescriber-identifying information for marketing prescription drugs without the consent of prescribers.The U.S.Supreme Court ruled that:

Accepted Answer

A)  although speech promoting marketing was not protected by the First Amendment, the law was unconstitutional based on the due process clause. 
B)  the statute regulated commercial speech which was evaluated under an "intermediate" standard and that the law was, therefore, constitutional. 
C)  the statute did not involve constitutional issues and was, therefore, a permissible type of regulation. 
D)  the conduct prohibited by the law was protected by the First Amendment and that the law was unconstitutional. 
A)  although speech promoting marketing was not protected by the First Amendment, the law was unconstitutional based on the due process clause. 
B)  the statute regulated commercial speech which was evaluated under an "intermediate" standard and that the law was, therefore, constitutional. 
C)  the statute did not involve constitutional issues and was, therefore, a permissible type of regulation. 
D)  the conduct prohibited by the law was protected by the First Amendment and that the law was unconstitutional.

Question 17

The __________ theory recognizes that firms have relationships with many constituent groups which both affect and are affected by the actions of the firm.

Accepted Answer

A)  stakeholder 
B)  stockholder 
C)  relational 
D)  cohesive 
A)  stakeholder 
B)  stockholder 
C)  relational 
D)  cohesive

Question 18

The entering into of nondisclosure agreements is an unethical practice that should not be tolerated by a legally astute manager.

Accepted Answer

A) True 
 B)False

Question 19

The "systems approach" to business and society builds on which of the following stakeholder theory insights?

Accepted Answer

A)  That firms have relationships with many constituent groups, which both affect and are affected by the actions of the firm. 
B)  That firms have relationships with many constituent groups, and that these groups must be managed to best promote value to stockholders. 
C)  That although firms have relationships with many constituent groups, these groups have little impact on the ongoing management of business firms. 
D)  That firms have relationships with only a few groups, such as employees, that are directly connected with business operations. 
A)  That firms have relationships with many constituent groups, which both affect and are affected by the actions of the firm. 
B)  That firms have relationships with many constituent groups, and that these groups must be managed to best promote value to stockholders. 
C)  That although firms have relationships with many constituent groups, these groups have little impact on the ongoing management of business firms. 
D)  That firms have relationships with only a few groups, such as employees, that are directly connected with business operations.

Question 20

Fact Pattern 1-1Susan, the CEO of ABC Company, which was involved in the production and sale of hair care products, decided to hire new employees to develop new product lines for a planned expansion into the dog shampoo arena. She was concerned, however, that the employees specializing in canine products might leave at some point, taking company secrets with them for use in competition with ABC. She, therefore, required that the employees sign contracts containing covenants not to compete. Susan also consulted her in-house counsel, Sam, regarding the effect of some new regulations involving the use of certain chemicals in shampoo and conditioner. Sam told her, however, to ignore the regulations until some type of investigation of the company was started. Sam says that more than likely no one will ever check to see whether or not ABC is in compliance. Susan disagrees with his advice and decides to seek other counsel.
-Refer to Fact Pattern 1-1.The covenants not to compete involved which of the following types of law?

Accepted Answer

A)  Public 
B)  Private 
C)  Circumscribed 
D)  Tangent 
A)  Public 
B)  Private 
C)  Circumscribed 
D)  Tangent

Exam 1: Law, Value Creation, and Risk Management.

The __________ is an advocacy group that has commended Disney's new advertising and marketing guidelines for children.

__________ is a type of relationship building lobbying that is prevalent in China.

Exhibit 1.5 indicates that the protection of private property rights is one way to promote economic growth within a society.

Researchers found a statistically significant inverse relationship between a country's economic prosperity,as measured by the per capita gross domestic product,and the country's judicial independence.

Law is not just a static external force acting upon managers and their firms; rather law and organizations are "endogenously coevolutionary."

Which of the following is true regarding a comparison of the law of the United States and the law of the European Union?

The ____ approach to business and society introduced in the text is a descriptive framework that integrates legal and societal considerations with mainstream theories of competitive advantage and social responsibility.

By __________,managers help shape the legal environment in which they do business.

A legally astute manager understands that legal analysis is often ambiguous.

Insurance policies may help firms manage risk.

Under the resource-based view of a firm,when can a firm's resources be a source of sustained competitive advantage?

According to the Systems Approach to Business and Society in Exhibit 1.1,the __________ is at the center of the societal context.

Based on Exhibit 1.6,which of the following is NOT a way in which U.S.law protects workers?

J.P.Morgan Chase's "Sons and Daughters" hiring program,involving hiring children of China's ruling elite,was approved by the United States Department of Justice and the Securities Exchange Commission.

In CASE 1.1Sorrell v.IMS Health Inc.,drug manufacturers challenged as unconstitutional a Vermont statute prohibiting pharmacies form selling prescriber-identifying information for marketing prescription drugs without the consent of prescribers.The U.S.Supreme Court ruled that:

The __________ theory recognizes that firms have relationships with many constituent groups which both affect and are affected by the actions of the firm.

The entering into of nondisclosure agreements is an unethical practice that should not be tolerated by a legally astute manager.

The "systems approach" to business and society builds on which of the following stakeholder theory insights?

Ethics and the Law.

Sources of Law, Courts, and Dispute Resolution.

Constitutional Bases for Business Regulation.

Agency.

Administrative Law.

Contracts.

Sales, Licensing, and E-Commerce.

Torts and Privacy Protection.

Product Liability.

Intellectual Property.

The Employment Agreement.

Civil Rights and Employment Discrimination.

Criminal Law.

Environmental Law and Sustainability.

Antitrust.

Consumer Protection.

Real Property and Land Use.

Forms of Business Organizations.

Directors, Officers, and Controlling Shareholders.

Public and Private Offerings of Securities.

Securities Fraud and Insider Trading.

Debtor-Creditor Relations and Bankruptcy.

International Law and Transactions.

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