Question 1

Unless you have investments, the stock market has little impact on your life.

Accepted Answer

A) True 
 B)False  False

Question 2

Which is not an example of an indirect stakeholder?

Accepted Answer

A) a community 
B) society 
C) the environment 
D) All of the above are indirect stakeholders. 
A) a community 
B) society 
C) the environment 
D) All of the above are indirect stakeholders. A

Question 3

Match between columns
                        Premises: A financial instrument sold to raise capital for a corporation
A business practice that favors increasing shareholder wealth over all other objectives
The number of employees a business must hire to replace workers who have left the company
The theory that a company has ethical responsibilities to many people affected by the decisions and actions of the business
Efforts to improve the well-being of others through charitable donations
A business that provides a service or commodity that other businesses require
The theory that a company's only obligation is to try to make as much money as possible for its investors and owners
A business that sells a product manufactured by others to retailers

Accepted Answer

The Answer of stakeholder model and turnover and distributor and is...

Question 4

Until the early 1950s, corporations were legally required to follow the shareholder model.

Accepted Answer

A) True 
 B)False

Question 5

After World War II, laws were revised so that U.S. corporations could

Accepted Answer

A) increase their profits. 
B) get more business. 
C) play a larger role in society. 
D) favor their owners. 
A) increase their profits. 
B) get more business. 
C) play a larger role in society. 
D) favor their owners.

Question 6

A fundamental question in business ethics is, What is the purpose of a corporation supposed to be?

Accepted Answer

A) True 
 B)False

Question 7

New Start Pictures is a small, independent film company. Which is a direct stakeholder in the company?

Accepted Answer

A) its creative director 
B) the production staff 
C) the company that distributes its movies 
D) all of the above 
A) its creative director 
B) the production staff 
C) the company that distributes its movies 
D) all of the above

Question 8

An example of corporate philanthropy is

Accepted Answer

A) increasing the wages of lower-level employees. 
B) increasing the salaries of upper-level management. 
C) sponsoring a local theater company. 
D) all of the above 
A) increasing the wages of lower-level employees. 
B) increasing the salaries of upper-level management. 
C) sponsoring a local theater company. 
D) all of the above

Question 9

In the 1919 lawsuit discussed in the chapter, the Dodge Brothers were

Accepted Answer

A) customers. 
B) stockholders. 
C) corporate owners. 
D) representatives of a charitable organization. 
A) customers. 
B) stockholders. 
C) corporate owners. 
D) representatives of a charitable organization.

Question 10

Milton Friedman was an advocate of

Accepted Answer

A) the stakeholder model. 
B) the shareholder model. 
C) corporate philanthropy. 
D) economics. 
A) the stakeholder model. 
B) the shareholder model. 
C) corporate philanthropy. 
D) economics.

Question 11

Milton Friedman argued that since stockholders have invested money in a company, their interests should be given preference over those of others.

Accepted Answer

A) True 
 B)False

Question 12

A CEO who believes the company should maximize profits at all costs is following the stakeholder model.

Accepted Answer

A) True 
 B)False

Question 13

Many Fortune 500 companies practice the stakeholder model.

Accepted Answer

A) True 
 B)False

Question 14

Corporations are legally required to "do good deeds."

Accepted Answer

A) True 
 B)False

Question 15

In a true ethical dilemma, a company considers an action that will not increase the stockholders' return in any certain or measurable way.

Accepted Answer

A) True 
 B)False

Question 16

Paying dividends reflects the _____ viewpoint.

Accepted Answer

A) shareholder 
B) direct stakeholder 
C) indirect stakeholder 
D) philanthropy 
A) shareholder 
B) direct stakeholder 
C) indirect stakeholder 
D) philanthropy

Question 17

A company's stakeholders include its stockholders.

Accepted Answer

A) True 
 B)False

Question 18

Corporations are owned by stakeholders.

Accepted Answer

A) True 
 B)False

Unless you have investments, the stock market has little impact on your life.

Which is not an example of an indirect stakeholder?

Until the early 1950s, corporations were legally required to follow the shareholder model.

After World War II, laws were revised so that U.S. corporations could

A fundamental question in business ethics is, What is the purpose of a corporation supposed to be?

New Start Pictures is a small, independent film company. Which is a direct stakeholder in the company?

An example of corporate philanthropy is

In the 1919 lawsuit discussed in the chapter, the Dodge Brothers were

Milton Friedman was an advocate of

Milton Friedman argued that since stockholders have invested money in a company, their interests should be given preference over those of others.

A CEO who believes the company should maximize profits at all costs is following the stakeholder model.

Many Fortune 500 companies practice the stakeholder model.

Corporations are legally required to "do good deeds."

In a true ethical dilemma, a company considers an action that will not increase the stockholders' return in any certain or measurable way.

Paying dividends reflects the _____ viewpoint.

A company's stakeholders include its stockholders.

Corporations are owned by stakeholders.

Welcome to Ethics

Ethical Principles

Personal Ethical Development

Ethical Selling, Marketing, and Advertising

Technology, Testing, and Workplace Privacy

Ethics and Discrimination

Ethics for Employees

Ethical Lending and the Great Recession

Two Global Issues: The Environment and Sweatshops

Critical Thinking in Ethics

Filters

Exam 4: Shareholder Theory and Stakeholder Theory

Unless you have investments, the stock market has little impact on your life.

Which is not an example of an indirect stakeholder?

Until the early 1950s, corporations were legally required to follow the shareholder model.

After World War II, laws were revised so that U.S. corporations could

A fundamental question in business ethics is, What is the purpose of a corporation supposed to be?

New Start Pictures is a small, independent film company. Which is a direct stakeholder in the company?

An example of corporate philanthropy is

In the 1919 lawsuit discussed in the chapter, the Dodge Brothers were

Milton Friedman was an advocate of

Milton Friedman argued that since stockholders have invested money in a company, their interests should be given preference over those of others.

A CEO who believes the company should maximize profits at all costs is following the stakeholder model.

Many Fortune 500 companies practice the stakeholder model.

Corporations are legally required to "do good deeds."

In a true ethical dilemma, a company considers an action that will not increase the stockholders' return in any certain or measurable way.

Paying dividends reflects the _____ viewpoint.

A company's stakeholders include its stockholders.

Corporations are owned by stakeholders.

Welcome to Ethics

Ethical Principles

Personal Ethical Development

Ethical Selling, Marketing, and Advertising

Technology, Testing, and Workplace Privacy

Ethics and Discrimination

Ethics for Employees

Ethical Lending and the Great Recession

Two Global Issues: The Environment and Sweatshops

Critical Thinking in Ethics

Filters