Question 1

In the corporate world,  the board of directors will

Accepted Answer

A)  rubber stamp the policies and recommendations of the management.
B)  write the policies and procedures.
C)  be there just for show.
D)  hire and fire people for key management positions. A

Question 2

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

Accepted Answer

A) True 
 B)False  True

Question 3

What society finds to be useful and desirable is always brings profitability to companies.

Accepted Answer

A) True 
 B)False  False

Question 4

Explain the invisible-hand argument.What are some of the arguments against the invisible-hand argument? Do you agree or disagree? ​

Accepted Answer

The answer of Explain the invisible-hand argument.What are some of...

Question 5

Those with a broader view concerning business obligations believe that with power comes

Accepted Answer

A)  more power.
B)  more money.
C)  too many limits.
D)  social responsibility.

Question 6

The invisible-hand argument against broadening corporate responsibility says that business's appetite for profit should be controlled by the hand of the government.

Accepted Answer

A) True 
 B)False

Question 7

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

Accepted Answer

A)  let the games begin.
B)  promote open and free competition.
C)  destroy the competition.
D)  make business fun.

Question 8

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

Accepted Answer

A)  Corporations should not internalize their externalities.
B)  Moral responsibility arises from social power.
C)  Businesses have other obligations besides making a profit.
D)  The modern corporation is not a social institution.

Question 9

According to Melvin Anshen,the case for a broad view of corporate responsibility can be defended on the basis of there always being a kind of social contract existing between business and society.

Accepted Answer

A) True 
 B)False

Question 10

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

Accepted Answer

A)  nation.
B)  stockholders.
C)  community.
D)  employees.

Question 11

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

Accepted Answer

A)  there is an imbalance of knowledge between buyer and seller.
B)  business would be an "inept custodian" of public values.
C)  firms are unwilling or simply refuse to maximize profits.
D)  corporate culture promotes dysfunctional social relations.

Question 12

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

Accepted Answer

A)  "share the wealth."
B)  "the rich get richer and the poor get poorer."
C)  "social contract."
D)  "one for all and all for one."

Question 13

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.

Accepted Answer

A) True 
 B)False

Question 14

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

Accepted Answer

A)  The idea that incorporation is a by-product of the people's right to associate,not a gift from the state.
B)  The move from mercantilist thinking to a belief in Benjamin Franklin's invisible hand.
C)  The idea that incorporation is a gift from the state.
D)  The thought that laissez-faire is a losing proposition..

Question 15

Briefly explain Milton Friedman's view of social responsibility.

Accepted Answer

The answer of Briefly explain Milton Friedman's view of social...

Question 16

Explain the relevance of the concept of a promissory relationship to the debate over corporate social responsibility.

Accepted Answer

The answer of Explain the relevance of the concept of...

Question 17

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:

Accepted Answer

A)  deception.
B)  harm.
C)  force.
D)  fraud.

Question 18

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

Accepted Answer

A)  business-can-handle-it
B)  let-government-do-it
C)  society-lacks-the-expertise
D)  visible-hand

Question 19

The best statement to describe corporations is

Accepted Answer

A)  corporations don't need moral codes.
B)  corporate culture refers to the cultural activities sponsored by the company for its employees.
C)  Johnson & Johnson's handling of the Tylenol crisis of 1982 was a gross failure of corporate responsibility.
D)  corporate culture can be both explicit and implicit.

Question 20

Adherents of the broad view of corporate responsibility claim that modern business is intimately integrated with the rest of society and that,as a result,although society expects business to pursue its economic interests,business has other responsibilities as well.

Accepted Answer

A) True 
 B)False

Exam 5: Corporations

In the corporate world, the board of directors will

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

What society finds to be useful and desirable is always brings profitability to companies.

Explain the invisible-hand argument.What are some of the arguments against the invisible-hand argument? Do you agree or disagree? ​

Those with a broader view concerning business obligations believe that with power comes

The invisible-hand argument against broadening corporate responsibility says that business's appetite for profit should be controlled by the hand of the government.

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

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

According to Melvin Anshen,the case for a broad view of corporate responsibility can be defended on the basis of there always being a kind of social contract existing between business and society.

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

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

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

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.

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

Briefly explain Milton Friedman's view of social responsibility.

Explain the relevance of the concept of a promissory relationship to the debate over corporate social responsibility.

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:

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

The best statement to describe corporations is

Adherents of the broad view of corporate responsibility claim that modern business is intimately integrated with the rest of society and that,as a result,although society expects business to pursue its economic interests,business has other responsibilities as well.

Explain the invisible-hand argument.What are some of the arguments against the invisible-hand argument? Do you agree or disagree?