Exam 5: Corporations

Externalities give us a reason to support the narrow view of corporate responsibility.

It is never profitable for corporations to acknowledge that business should be conducted to make a positive contribution to society rather than just make a profit.

According to Milton Friedman, business has no social responsibilities other than to maximize profits so long as it follows the rules of the game.

In the corporate world, the board of directors will typically

The "rules of the game" for corporate work are intended to

John Kenneth Galbraith rejects the assumption that Smith's invisible hand will solve all social and economic problems.

In his essay "Social Responsibility and Economic Efficiency," Kenneth Arrow has argued that corporations only have a responsibility to maximize shareholder profits.

Kenneth Arrow discussed two important situations in which profit maximization can be socially inefficient. One of these occurs when

The debate over corporate moral agency hinges on which issue?

The case of Citizens United v. Federal Election Commission ruled that corporations could spend money to support political candidates.

Which of the following contributed to the more relaxed incorporation procedures of modern times?

Milton Friedman argues that business has a responsibility to provide employment, refrain from polluting, and eliminate discrimination, even when it's not profitable to do so.

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

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

The idea that corporations will impose their values on us supports one of the arguments for the narrow view of corporate social responsibility.

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

Which of the following is one of the three arguments in favor of narrow corporate social responsibility discussed in Chapter 5?

Melvin Anshen suggests that there is a relationship between business and society which he termed as

Most Americans believe a corporation's top obligation is to its

An effective professional or business moral code-as well as the public's awareness of this code-is never good for business.