QUESTION 15 Individuals or groups who are affected by or can influence an organi

Question

QUESTION 15

Individuals or groups who are affected by or can influence an organization’s operations are called

                            

shareholders.

                            

stakeholders.

                            

organizational constituencies.

                            

None of the above.

1 points  

QUESTION 16

Many companies limit the number of board memberships their own board members may hold.

True

False

1 points  

QUESTION 17

Objectives are specific, often quantified, versions of goals.

True

False

1 points  

QUESTION 18

Offshoring refers to relocating some or all of a firm’s manufacturing or other business processes to another country to reduce costs.

True

False

1 points  

QUESTION 19

Outsourcing efforts can fail because

                            

of hidden costs.

                            

of loss of control of the outsourced activity.

                            

a firm might outsource an activity that should not be outsourced.

                            

All of the above.

1 points  

QUESTION 20

Outsourcing refers to contracting out a firm’s non-core, non-revenue-producing activities to other organizations primarily to reduce costs.

True

False

1 points  

QUESTION 21

Over the past several decades, the composition of the typical board has shifted from one controlled by insiders to one controlled by outsiders.

True

False

1 points  

QUESTION 22

Relocating some or all of a firm’s manufacturing or other business processes to another country to reduce costs is known as

                            

outsourcing.

                            

offshoring.

                            

mass customization.

                            

commoditization.

1 points  

QUESTION 23

Social responsibility and managerial ethics

                            

are synonymous.

                            

are related, but different concepts.

                            

are relative easy to assess.

                            

None of the above.

1 points  

QUESTION 24

Social responsibility refers to an individual’s responsibility to make business decisions that are legal, honest, moral, and fair.

True

False

1 points  

QUESTION 25

The CEO also serving as chair of the board is known as

                            

rubber stamp mentality.

                            

corporate governance.

                            

CEO duality.

                            

executive leadership.

1 points  

QUESTION 26

The attractiveness of diversification is consistent with which agency perspective?

                            

Management serves its own interests.

                            

Management and stockholders share the same interests.

                            

Management pursues the interests of the stakeholders.

                            

None of the above.

1 points  

QUESTION 27

The attractiveness of downsizing is consistent with which agency perspective?

                            

Management serves its own interests.

                            

Management and stockholders share the same interests.

                            

Management pursues the interests of the stakeholders.

                            

None of the above.

1 points  

QUESTION 28

The competing priorities of an organization’s stakeholders are known as

                            

the organization’s goals.

                            

the mission.

                            

the organization’s objectives.

                            

None of the above.

1 points  

QUESTION 29

The desired ends toward which efforts are directed comprise

                            

the organization’s goals.

                            

the mission.

                            

the organization’s objectives.

                            

None of the above.

1 points  

QUESTION 30

The idea that business firms should serve both society and the financial interests of the shareholders is known as

                            

the corporate charter.

                            

the corporate dilemma.

                            

managerial ethics.

                            

None of the above.

1 points  

QUESTION 31

The preoccupation with firm growth is consistent with which agency perspective?

                            

Management serves its own interests.

                            

Management and stockholders share the same interests.

                            

Management pursues the interests of the stakeholders.

                            

None of the above.

1 points  

QUESTION 32

The triple bottom line refers to the notion that firms must maintain and improve social and ecological performance in addition to economic performance.

True

False

1 points  

QUESTION 33

The utilitarian view of ethics suggests that anticipated outcomes and consequences should be the primary considerations when evaluating an ethical dilemma.

True

False

QUESTION 34

What is the difference between takeovers and leveraged buyouts? Are either good for U.S. firms or the economy?

QUESTION 35

When additional insiders are added to outsider-dominated boards, CEO dismissal is more likely when corporate performance declines.

True

False

1 points  

QUESTION 36

When implemented properly, outsourcing can

                            

cut costs.

                            

refocus the core business.

                            

improve firm performance.

                            

All of the above.

1 points  

QUESTION 37

When outsiders are added to insider-dominated boards,

                            

CEO dismissal is less likely when performance is poor.

                            

insiders are more likely to press for corporate restructuring.

                            

insiders are likely to retain their relative influence on the management of the firm.

                            

None of the above.

1 points  

QUESTION 38

Which of the following might represent the goals of customers?

                            

The company should provide high quality products and services at the most reasonable prices possible.

                            

The company should maintain a healthy financial posture and a policy of on-time payment of debt

                            

The company should produce a higher-than-average return on equity.

                            

The company should provide goods and services with minimum environmental costs, increase employment opportunities, and contributing to social and charitable causes.

1 points  

QUESTION 39

Which of the following might represent the goals of shareholders?

                            

The company should provide high quality products and services at the most reasonable prices possible.

                            

The company should maintain a healthy financial posture and a policy of on-time payment of debt.

                            

The company should produce a higher-than-average return on equity.

                            

The company should provide goods and services with minimum environmental costs, increase employment opportunities, and contributing to social and charitable causes.

1 points  

QUESTION 40

Which view of ethics suggests that decisions should be based on existing norms of behavior, including cultural, community, or industry factors?

                            

rights view

                            

cultural view

                            

religious view

                            

None of the above.

Explanation / Answer

Question 15

The correct answer is "stakeholders".

action of the company directly or indirectly affect their interest. Employees, business partners, suppliers, customers, etc. are referred as stakeholders. Internal stakeholders refer to individuals who are involved in the operational activities of the organization directly. Example - employees, managers and owners. External stakeholders are individuals who influence the operational activities of the organization indirectly. Example - suppliers, creditors, government, etc.

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