Deck 1: The Relationship Between Business and Society

Question 1

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.

Answer 1

True

Question 2

When resolving ethical issues,automatic decisions are reliable.

Answer 2

False

Question 3

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

Answer 3

True

Question 4

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 5

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

Question 6

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

Question 7

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 8

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

Question 9

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

Question 10

Deontological theories of ethics are rule-based.

Question 11

Utilitarianism is one form of rule-based theories.

Question 12

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 13

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

Question 14

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

Question 15

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

Question 16

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

Question 17

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

Question 18

A free enterprise system sees a limited role for government.

Question 19

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

Question 20

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

Question 21

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

Question 22

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 23

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

Question 24

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

Question 25

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

Question 26

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

Question 27

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

Question 28

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 29

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

Question 30

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 31

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

Question 32

Strategic planning is a function of the board of directors.

Question 33

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

Question 34

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 35

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

Question 36

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

Question 37

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

Question 38

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

Question 39

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 40

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 41

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

Question 42

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) _________ of ULO Corporation.

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

Question 43

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 _________ model whereby economic decision making is left to those individuals or enterprises who own the means of production.

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

Question 44

LK Corporation has recently downsized its operations.The trend towards healthy eating has led to fewer purchases of lollipops and suckers,the principal product of the firm.Knowing that Halloween is approaching and that sales will improve,the company has told the media that the workers will be rehired as soon as sales improve.In planning to rehire the laid off workers,LK Corporation is attributing the layoffs to the ________.

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

Question 45

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 indirect owner
C) member of the board of directors
D) manager
E) active stakeholder

Question 46

The 'veil of ignorance' test is a variation of _________ theories.

A) teleological
B) virtue
C) deontological
D) consequentialist
E) justice

Question 47

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) direct owner
B) indirect owner
C) member of the board of directors
D) manager
E) None of the answers.

Question 48

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 __________ system of a nation.

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

Question 49

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

Question 50

There exists a reciprocal relationship between business and society.

Question 51

One prominent ethicist who wrote extensively about virtue ethics was:

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

Question 52

Jane is starting a business to sell handmade greeting cards online.She is forming a(n) ___________ in that she is planning to assume all the risks and accept all the rewards of business ownership.

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

Question 53

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

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

Question 54

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

Question 55

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

Question 56

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

Question 57

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

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

Question 58

Eduardo argued that Canadian business has a responsibility that goes beyond making money for investors.Businesses operate within communities.Decisions,such as closing down factories,will affect employees,their families as well as other businesses located in the factory's town.Eduardo is arguing for a ____________ model of capitalism.

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

Question 59

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 ____________ is the responsibility of the __________.

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

Question 60

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

Question 61

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

Question 62

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

Question 63

Some critics of the business enterprise system claim that a system based on a capitalistic market leads to inequities.What is the response by supporters of the capitalist system?

Question 64

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

Question 65

Why does business need society and society need business?

Question 66

Why is the term 'ethics of business' preferred over the term 'business ethics'?

Question 67

Contrast deontological and teleological theories.

Question 68

Explain how integrity applies to business students.

Question 69

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

Question 70

Name and discuss four factors influencing attitudes towards business systems.

Question 71

Compare and contrast (a) proprietorship,(b) partnership and (c) incorporation.

Question 72

What is a responsible corporation?

Question 73

The business enterprise system has been described in a number of ways.How would you describe our economic system to a new Canadian?

Question 74

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

Question 75

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) Legitimacy
D) Social Licence
E) None of the above.