Exam 5: Corporations

According to Keith Davis, in addition to considering potential profitability, a business must weigh the long-range social costs of its activities as well. Only if the overall benefit to society is positive should business act.

The narrow view of corporate social responsibility argues companies must make money within the "rules of the game" which rules out all of the following except for:

The case of First National Bank of Boston v. Bellotti sharpened the legal distinction between corporations and individuals.

Manuel Velasquez claims that the corporate internal decision structure of a corporation shows that a corporation can have both intentions and intentionality.

Describe the ethical challenges that Yahoo faces in the China market.

"Limited liability" means that members of a corporation are financially liable for corporate debts only up to the extent of their investments.

Corporations should welcome the outside opinions of society as a whole, local communities, customers, suppliers, employees, managers, and stockholders.

According to Kenneth Arrow, trust and confidence are highly overrated in business.

In his essay "Social Responsibility and Economic Efficiency," Kenneth Arrow has argued that ethical behavior in the business world comes only at the expense of economic efficiency.

Most business observers agree with Berle and Means that, because stock ownership in large corporations is so dispersed, actual control of the corporation has passed to management.

The debate over corporate moral agency hinges on which question?

One of the three important "limits to what the law can do" discussed by Christopher Stone is

Externalities are the unintended negative (or in some cases positive)consequences that an economic transaction between two parties can have on some third party.

Milton Friedman's perspective is that the only responsibility of a business is to

Momentum for the corporate organization of business really gained momentum after which war?

Milton Friedman argues that

Which of the following do proponents of the broader view of corporate social responsibility believe?

The business-can't-handle-it argument is an argument in favor of a broad view of corporate responsibility.

Adam Smith proposed that in our pursuit of economic interests we are led by

Corporate internal decision (CID)structures amount to established procedures for accomplishing specific goals.