Deck 12: Business Influence on Gocrnment and Public Policy

Question 1

Lobbying takes place only at the federal government level.

Answer 1

False

Question 2

Because it represents a homogenous group of businesses,the NFIB is able to present a unified message when lobbying Congress.

Answer 2

True

Question 3

The way in which most legislation gets passed is through special-interest politics.

Answer 3

True

Question 4

Today,many major U.S.corporations avoid paying taxes by utilizing offshore tax loopholes.

Question 5

PACs allow labor to organize their giving.

Question 6

Individuals are less restricted in their contributions to political candidates than are PACs.

Question 7

The money that PACs donate to political candidates has brought about great benefit to the political system.

Question 8

The argument in favor of unlimited corporate political spending based on the right to free speech.

Question 9

An umbrella organization has a broad base of membership that represents businesses in several different industries.

Question 10

Government is not a central stakeholder of business.

Question 11

Lobbyists are affectionately known as "influence peddlers."

Question 12

A political strategy for public activism is keeping an issue off the public agenda by providing no information to policyrnakers.

Question 13

Leadership PACs are connected PACs.

Question 14

Because of the difficulty in coordinating the effort,grassroots lobbying is no longer used extensively.

Question 15

For large corporations today,political involvement is not optional and government has granted them more power to do so.

Question 16

PACs are uniformly well thought of in American society.

Question 17

To be effective,grassroots lobbying must be genuine.

Question 18

One strategy for corporate political action is constituency building.

Question 19

Unlimited corporate political spending was made legal by the Citizens United decision of the U.S.Supreme Court.

Question 20

Lobbyists are generally interested in the common good.

Question 21

In lobbying,a trade association often uses

A)written phone banks.
B)use grassroots lobbying support.
C)lagging promotion.
D)limited spending.

Question 22

Lobbying organizations that are composed of many fmns in a given industry or line of business are called

A)umbrella organizations.
B)trade associations.
C)labor unions.
D)company lobbying.

Question 23

One effective strategy used by the NRA was its shutting down of scientific studies involving gun injuries.

Question 24

The process of mobilizing individual citizens who might be most directly affected by legislative activity to political action is called

A)grassroots lobbying.
B)astroturflobbying.
C)cyberadvocacy.
D)company lobbying.

Question 25

When a firm advocates for its own special interest,it is

A)acting as an umbrella organization.
B)representing its trade association.
C)harming it labor union.
D)company lobbying.

Question 26

Using the Internet to communicate with grassroots supporters and enable them to contact their legislators is termed

A)grassroots lobbying.
B)astroturflobbying.
C)cyberadvocacy.
D)company lobbying.

Question 27

One recommendation to make cyberadvocacy more effective is for advocates to

A)make their e-mails targeted to the recipient and specific in nature.
B)send their e-mails to all members of Congress.
C)include attention-grabbing subject lines in their e-mails.
D)provide no identifying information in order to protect their privacy.

Question 28

When a business assumes an advocacy role for its interests,it is

A)doing what is normal and expected.
B)breaking the law.
C)operating at the trade association level.
D)allowing government to influence it.

Question 29

Business lobbyists do all of the following things for their clients except

A)establish communications channels with regulatory bodies.
B)protect firms against surprise legislation.
C)audit the effects of passed legislation.
D)help draft legislation.

Question 30

Which of the following is not usually a function that lobbyists serve for their clients?

A)monitoring legislation
B)helping members of Congress get reelected
C)organizing grassroots efforts
D)helping former members of Congress fmdjobs

Question 31

Lobbyists often provide all of the following services,except:

A)create slick advertisements.
B)conduct indirect-mail campaigus.
C)provide access to lawmakers.
D)draft legislation.

Question 32

Astroturf lobbying is massively regulated.

Question 33

Which of the following is not a major approach that business uses to influence government?

A)lobbying
B)PACs
C)coalition building
D)vigilance

Question 34

The process of influencing public officials to promote or secure the passage or defeat of legislation is known as

A)bribery.
B)activism.
C)lobbying.
D)suffrage.

Question 35

Participation in the formulation and execution of public policy at various levels of government is

A)available only to individual citizens.
B)required by the constitution.
C)the defmition oflobbying.
D)the defmition of political involvement.

Question 36

Lobbying takes place at all of the following levels except

A)umbrella organizations.
B)PACs.
C)trade associations.
D)company lobbying.

Question 37

Lobbying organizations that represent the collective business interests of the United States are called

A)umbrella organizations.
B)trade associations.
C)labor unions.
D)company lobbying.

Question 38

The central product of the new breed of lobbyist is

A)influence.
B)access.
C)advice.
D)information.

Question 39

The power of businesses to drive the political agenda in Washington,D.C.is now

A)subject to special interests.
B)virtually unchecked.
C)largely impeded.
D)in government's interest.

Question 40

Lobbying efforts that do not represent the genuine concerns of the citizens supposedly involved is called

A)grassroots lobbying.
B)astroturflobbying.
C)cyberadvocacy.
D)company lobbying.

Question 41

Distinct groups or parties that realize they have something in common,so that it makes sense for them to join forces,typically form

A)joint ventures.
B)partnerships.
C)coalitions.
D)limited liability corporations.

Question 42

Universities do more lobbying when congressional appropriations committee members serve the districts in which they are located.This targeted lobbying is:

A)successful
B)unsuccessful.
C)mixed.
D)untested.

Question 43

PAC contributions were more influential when given to House members than Senate members because:

A)House members were elected every two years.
B)House members were subject to more interest groups.
C)House members were generally poorer.
D)Senate members refused PAC money.

Question 44

One of the ways that the Chamber of Commerce has regained its power is by

A)making large campaign contributions on its own behalf.
B)dispensing favors to individual businesses that do not want their company name associated with lobbying efforts.
C)hiring outside lobbyists to help it attract more members.
D)focusing on international trade issues.

Question 45

The National Federation oflndependent Businesses (NFIB)attributes its newfound power to

A)the growth of multinational companies.
B)globalization.
C)its new status as a trade association.
D)its success at grassroots lobbying.

Question 46

Studies offrnancial performance outcomes on political spending

A)show a strong correlation between contributions to PACs,and corporate financial performance.
B)show a weak correlation between contributions to PACs,and corporate financial performance.
C)are inconclusive.
D)apply only to political outcomes.

Question 47

The National Association of Manufacturers (NAM):

A)receives accolades from its small and medium-sized members for focusing on their particular needs.
B)advocates for protectionist trade policies.
C)voted to act against the wishes of its membership,which led to the creation of a new organization,the AAF.
D)is credited with helping create the gain in manufacturing jobs.

Question 48

The top PAC contributor during 2011-2012 was:

A)National Association of Realtors.
B)Teamsters.
C)Service Employees International Union.
D)Lockheed Martin.

Question 49

Which of the following conditions is not conducive to the effectiveness of PAC contributions?

A)when the issue is specialized
B)when the issue is narrow
C)when PACs adapt lobbying techniques to their contribution strategies
D)when the issue is highly visible

Question 50

Which of the following is not a level at which businesses lobby?

A)individual company.
B)sectoral trade associations.
C)umbrella trade associations.
D)All of these are levels at which businesses lobby.

Question 51

Political contributions from undisclosed donors are called:

A)soft money
B)hard money
C)easy money
D)dark money

Question 52

The Golden Rule of Politics is

A)do unto others before they do unto you.
B)do unto others as you would want done to you.
C)he who has the gold,rules.
D)do unto others as they would want done to them.

Question 53

Green rankings can be misleading because:

A)they focus on compliance with regulations.
B)they focus on operational impacts.
C)they focus on overall practices,while iguoring the finn's political advocacy activities.
D)All of these are correct.

Question 54

The primary focus of the Business Roundtable is

A)free trade policies.
B)opposing shareholder empowerment.
C)the economic well-being of the nation.
D)executive compensation.

Question 55

Corporations which donate to PACs may encounter.

A)leadership problems.
B)agency problems.
C)coalition problems.
D)political problems.

Question 56

Which of the following is not an umbrella organization?

A)Chamber of Commerce
B)National Association of Manufacturers
C)Pharmaceutical Research and Manufacturers of America
D)Business Roundtable

Question 57

The principal instruments through which business uses its fmancial resources to influence government are

A)umbrella organizations.
B)political action committees.
C)trade associations.
D)lobbyists.

Question 58

The channels through which corporations can make political contributions are.

A)limited.
B)many and varied.
C)difficult to navigate.
D)primarily tax loopholes.

Question 59

Regarding the independence of SuperPacs from the political candidates they support,it is most correct to say:

A)they are completely independent of any political candidate.
B)they coordinate with the political candidate of their choice behind closed doors.
C)those who run the SuperPac know the candidate so well,they do not need to consult to coordinate efforts.
D)None of these is true.

Question 60

The Business Roundtable is an association of

A)Fortune 500 companies.
B)CEOs of leading companies.
C)leading consulting fmns.
D)human resource executives.

Question 61

Lobbyists often show legislators the benefits and detriments of complex legislation.Discuss the wisdom of allowing lobbyists to perform this function.

Question 62

Federal laws require a waiting period of one year before former goverrnnent officials can discuss private business matters with anyone in the White House.Why does this provision exist? Is one year a sufficient waiting period?

Question 63

Describe the role of political activity to the success of business.

Question 64

Suppose that tobacco companies are faced with the threat of legislation that would make all tobacco products illegal to sell.How would these companies keep this issue off the public agenda and out of the limelight?

Question 65

The National Association of Manufacturers (NAJ\1)experiences conflict among its members over the question of free trade among nations.Why is this a contentious issue for NAM members?

Question 66

Why might PACs lose their effectiveness?

Question 67

What's the danger of a company not being able to defme a public issue.

Question 68

What has been the impact of the Citizens United and Speechnow decisions on campaign funding?

Question 69

To fight for tort reform,the U.S.Chamber of Commerce established:

A)The Institute for Tort Reform.
B)The Institute for Legal Reform.
C)The U.S.Chamber for Tort Reform.
D)The American League for Tort Reform.

Question 70

The textbook notes that Rep.Billy Tauzin of Louisiana,chief architect of the new Medicare prescription drug law,has received a lucrative job lobbying for the pharmaceutical industry.News commentators have suggested that he has already earned his salary because the Medicare bill is expected to provide windfall profits for the drug companies.Chapter 10 said that one of the reasons government regulates business is to control excess profits.Are "windfall" profits for the pharmaceutical industry "excessive?" If so,how can we reconcile government's efforts to
regulate against excess profits with Tauzin's ability to draft legislation that provides windfall profits?

Question 71

Why should we be vigilant of possible abuses of power or violations of sound ethics as we investigate the political influence of business?

Question 72

Lobbyists have been identified as having very narrow self-interests.Apparently some of these interests go no further than lining their own pockets,with no regard for their clients' needs.Research the activities of Jack Abramoff and Michael Scanlon in connection with their representation of several Native American tribes and their gambling
cas1nos.

Question 73

The Chamber of Commerce has reinvigorated itself partially by representing the interests of individual companies that do not want their names attached to certain lobbying efforts.Certain coalitions also provide companies with this anonymity.Why would a company want to keep its name out of the public eye in lobbying efforts? and what resulting impacts has this had for them?

Question 74

What can be done to limit the influence of money on the political process?

Question 75

Microsoft was able to effectively defend against an antitrust suit by the United States,but lost a similar case in the
European Union.The European Commission charged that Microsoft exploited its monopoly position in several foreign countries.Investigate the resolution of this case.
Also,how did Microsoft take advantage of its win in the U.S.?

Question 76

The relationship between Congress and lobbying fmns has been referred to as:

A)cordial.
B)friendly.
C)a back door.
D)a revolving door.

Question 77

Should PACs be outlawed? Why or why not?

Question 78

Are the arguments for PACs more compelling than those against these organizations? Explain your position.