Deck 1: The Relationship Between Business and Society

Question 1

Julio and Julie are planning to start a business providing holistic,herbal products to consumers.This is an exciting business opportunity which has considerable growth potential.Concerned,however,about assuming a personal level of responsibility for the financial outcome of the enterprise,they decide to structure the business through:

A)incorporation
B)limited liability
C)proprietorship
D)corporation
E)partnership

Answer 1

A

Question 2

The three dominant approaches to normative theories of ethics include all of the following except:

A)Virtue
B)Teleological
C)Deontological
D)Justice
E)All of the above are approaches to normative theories of ethics.

Answer 2

D

Question 3

Christmas season is approaching and Kasia's mom is delighted with the range of offerings on the shelves of the toy store.It seems like every single toy manufacturer had a different strategy for the season.This range of offerings is the result of:

A)decentralized decision making
B)self-interest
C)innovation
D)allocation of resources
E)business cycle

Answer 3

A

Question 4

The discussion of the business enterprise system in the Business and Society class today was stimulating.John argued that the Canadian government should apply a

A)capitalism
B)stakeholder capitalism
C)laissez-faire capitalism
D)responsible enterprise
E)free enterprise

Question 5

The way a corporation achieves a balance among its economic,social,and environmental responsibilities in its operations so as to address stakeholder expectations is referred to as:

A)Corporate sustainability (CS)
B)Corporate social responsibility (CSR)
C)Ethics of business
D)Triple bottom line
E)Corporate citizenship

Question 6

The discussion of the business enterprise system in the Business and Society class today became interesting when Roberto took the position that the Canadian government should apply a model whereby economic decision making is left to those individuals or enterprises who own the means of production and the government has only the most minimal,strictly limited role.

A)stakeholder capitalism
B)laissez-faire capitalism
C)free enterprise
D)responsible enterprise
E)capitalism

Question 7

When purchasing a new vehicle,Robert asked the dealer: "So when will the car actually do the driving for me?" The dealer laughed and then showed Robert the new Lexus model that parallel parks for the driver.This example is addressing which issue related to society's attitude towards business?

A)Business cycle
B)Self-interest
C)Innovation
D)Allocation of resources
E)Decentralized decision making

Question 8

Francois is a shareholder in VNO Corporation and regularly attends annual shareholder meetings voting on policies that he feels are particularly relevant to the firm's social responsibilities.Francois is:

A)a direct owner
B)an active stakeholder
C)a manager
D)an indirect owner
E)a member of the board of directors

Question 9

Julian is planning on retiring from his role as chief executive of LVN Corporation.He doesn't know who will take his place or even if the departure should be gradual,but knows that

A)succession planning; manager
B)succession and termination; board of directors
C)hiring and termination of leadership; board of directors
D)succession planning; board of directors
E)hiring and termination of leadership; manager

Question 10

Kathleen's responsibility is to manage the business and affairs of KLN Corporation, which manufactures ceramic products for industry.Kathleen is a(n)of KLN
Corporation.

A)indirect owner
B)member of the board of directors
C)manager
D)philanthropist
E)direct owner

Question 11

The discussion of the business enterprise system in the Business and Society class today became heated when a debate broke out as to which capitalist system Canada should employ.Jamal argued that the Canadian government should apply a model
Whereby economic decision making is left to those individuals or enterprises who own the means of production.A profit motivation,with limited government involvement,
Would create a competitive market system.Crystal agreed,but added that accountability to society by business was also important and therefore a was better.

A)free enterprise; responsible enterprise
B)laissez-faire capitalism; stakeholder capitalism
C)laissez-faire capitalism; responsible enterprise
D)free enterprise; stakeholder capitalism
E)sustainable; stakeholder model

Question 12

Government and business work collaboratively with multiple stakeholders to use resources to meet the needs of the members of a society.This arrangement is called the

A)free enterprise
B)capitalist
C)economic
D)political
E)responsible enterprise

Question 13

By incorporating his business,Gordon has taken on partners who will provide financial backing.However,there are governmental requirements that shape the process.This is in contrast to the doctrine that allowed state control over the granting of
Incorporation.

A)concession
B)voluntary
C)legal
D)going concern
E)freedom of association

Question 14

Lucia is a shareholder in ULO Corporation,but she doesn't know it! She had thought for years that her pension was just sitting in a bank vault somewhere waiting for her to retire. Lucia is a(n)

A)direct owner
B)indirect owner
C)manager
D)active stakeholder of ULO Corporation.
E)member of the board of directors

Question 15

One prominent ethicist who wrote extensively about virtue ethics was:

A)Kant
B)Mills
C)Aristotle
D)Locke
E)Bentham

Question 16

A corporation demonstrating that it takes into account its role in and complete impact on society and the environment as well as its economic influence is called:

A)Corporate sustainability (CS)
B)Corporate social responsibility (CSR)
C)Ethics of business
D)Triple bottom line
E)Corporate citizenship

Question 17

Which of the following ethicists wrote that leadership can create opportunities for all to realize their potential?

A)Aristotle
B)Kant
C)Smith
D)Plato
E)Bentham

Question 18

Social media has enabled society to hold business:

A)responsible to stakeholders for profits
B)more accountable
C)responsible to the government for sustainability initiatives
D)less accountable
E)to a lower ethical standard

Question 19

Corporate activities demonstrating the inclusion of social and environmental as well as economic responsibilities in business operations as they impact all stakeholders to ensure the long-term survival of the corporation is called:

A)Corporate sustainability (CS)
B)Corporate social responsibility (CSR)
C)Ethics of business
D)Triple bottom line
E)Corporate citizenship

Question 20

Jane is starting a business to sell handmade greeting cards online.She is forming a(n)

A)going concern
B)virtual model
C)proprietorship
D)partnership
E)incorporated business

Question 21

Which of the following is true regarding the relationship between business and society?

A)Business needs society but the reverse is not true.
B)Society needs businesses,but the reverse is not true.
C)Business needs the government,and the government needs society.
D)Society needs the government,and the government needs business.
E)Society and business need each other.

Question 22

Responses to social and environmental issues will determine the corporations which will survive in the future.

Question 23

Utilitarianism is one form of rule-based theories.

Question 24

One advantage of virtue ethics is that there is general agreement as to what constitutes a virtue.

Question 25

Most people agree on a universal way to approach ethics and therefore,there is widespread agreement as to the appropriate behaviour by business in society.

Question 26

The privilege of operating in society with minimal formalized restrictions,that is legislation,regulation,or market requirements,based on maintaining public trust by
Doing what's acceptable to stakeholders in the business and society relationship is called:

A)Relevancy
B)Righteousness
C)Social Licence
D)Legitimacy
E)None of the above.

Question 27

When resolving ethical issues,automatic decisions are reliable.

Question 28

The 'greatest good for the greatest number' is a feature of consequentialist theories.

Question 29

In recruiting professionals to come and work for the firm,JKL Corporation provides incentives to the employees attending interviews.For example,Mary is encouraged to bring her husband,Robert,to the job interview at the company's expense.This is an example of what form of corporate wrongdoing?

A)Stock manipulation
B)Kickbacks
C)Misleading financial statements
D)Bid rigging
E)There is no wrongdoing.

Question 30

Ethics apply to business in the same manner as they apply to religion.

Question 31

Integrity refers to the appropriateness of a corporation's behaviour,not to its adherence to moral principles.

Question 32

The shareholders of DCV Corporation have agreed to coordinate their share purchases so that the stock looks more profitable just prior to the merger so that the public will see the company as a desirable investment.This is an example of:

A)bid rigging
B)kickbacks
C)stock-splitting
D)misleading financial statements
E)stock manipulation

Question 33

The study of business and society involves an exploration of what is "right" and/or "wrong" in terms of the social and ethical conduct of business.

Question 34

Virtue ethics focuses upon 'doing' rather than 'being'.

Question 35

The belief in the rightness of an institution,in this case the appropriateness of our business system to supply the goods and services wanted by Canadian society,is called:

A)Righteousness
B)Licencing
C)Relevancy
D)Legitimacy
E)None of the above.

Question 36

Virtue ethics emphasizes the situation that individuals find themselves in and focuses on what they are doing.

Question 37

The teleological approach to ethics is also referred to as a rule-based theory.

Question 38

The triple-E bottom line (3E)is the evaluation of a corporation's performance according
to a summary of the economic,social or ethical,and environmental value the corporation adds or destroys.

Question 39

A responsible corporation,a business undertaking that responds to social,ethical,and environmental responsibilities in addition to its economic obligations results in a firm's integrity.

Question 40

Deontological theories of ethics are rule-based.

Question 41

The responsible enterprise system and stakeholder capitalism both acknowledge that business has responsibility beyond making profit for shareholders.

Question 42

The concession doctrine implies that incorporation is a right,not a privilege for businesses.

Question 43

A minority of Canadians are owners of businesses,either directly or indirectly.

Question 44

A system based on a capitalistic market always leads to the equitable distribution of income.

Question 45

The board of directors is responsible to the manager of the corporation.

Question 46

The non-profit sector is alternately known as the third sector or the plural sector.

Question 47

Integrity is becoming an increasingly important attribute for managers to possess.

Question 48

A partnership may involve two or more than two individuals sharing the ownership of a business.

Question 49

A Hewlett-Packard Co.survey of Canadians found that 90 percent believed the more socially and environmentally responsible a corporation is,the more likely they are to purchase its goods and services.

Question 50

Self-interest by firms is an issue that the Canadian public consistently identifies as a negative attribute of the business enterprise system.

Question 51

A free enterprise system sees a limited role for government.

Question 52

The freedom of association doctrine implies that incorporation should occur without government intervention.

Question 53

In a proprietorship or partnership,the owners assume all responsibility for the firm,but they also receive all profits.

Question 54

Strategic planning is a function of the board of directors.

Question 55

Self-interest acts as a motivator in the business enterprise system and provides the drive for profit that encourages individuals to get things done.

Question 56

There are very few legal requirements for an individual establishing or operating a business in Canada.

Question 57

There is a positive relationship between living standards and how positive society views business.As living standards increase,the more likely society will view business in a
positive manner.

Question 58

Legislative safeguards are imposed upon incorporation processes to create and preserve an atmosphere of public confidence,as well as to create protections for investors and
creditors.

Question 59

Adam Smith argued for a system of capitalism that would see an enhanced role for government.

Question 60

Canadians' overall attitude towards business has been basically positive over the last ten years.

Question 61

The integrity of future business entrepreneurs,managers,and employees is unrelated to how these individuals behave while in academic programs.

Question 62

Legitimacy requires belief,trust,and confidence in the business system.

Question 63

Why does business need society and society need business?

Question 64

Social media is the various forms of interaction or communication enabled by technology-based tools most of which are Internet-based.

Question 65

How does a 'responsible enterprise system' differ from 'stakeholder capitalism'?

Question 66

There is little concern that a lack of academic integrity will have an influence on business integrity.

Question 67

Identify the five primary tasks of the board of directors as outlined in the text.

Question 68

Social licence is based on ethics,values,expectations,and self-regulation considered preferable to social or government control which is based on regulation,legislation,
litigation,and compliance.

Question 69

In order for a business to be legitimate,the business enterprise system must report positive profits and pay dividends to shareholders on a consistent basis.

Question 70

Name and discuss four factors influencing attitudes towards business systems.

Question 71

There exists a reciprocal relationship between business and society.