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Satisfactory Essays
Chapter 2—Social Responsibility

MULTIPLE CHOICE

1. Stakeholders' power over businesses stems from their
a.
ability to withdraw or withhold resources.
b.
ability to generate profits.
c.
media impact.
d.
political influence.
e.
stock ownership.

ANS: A PTS: 1

2. Those who have a claim in some aspect of a firm's products, operations, markets, industry, and outcomes are known as
a.
shareholders.
b.
stockholders.
c.
stakeholders.
d.
claimholders.
e.
special-interest groups.

ANS: C PTS: 1

3. Which of the following do not typically engage in transactions with a company and thus are not essential for its survival?
a.
Employees
b.
Secondary stakeholders
c.
Primary stakeholders
d.
Investors
e.
Customers

ANS: B PTS: 1

4. A firm that makes use of a _____ recognizes other stakeholders beyond investors, employees, and suppliers, and explicitly acknowledges the two-way dialog that exists between a firm's internal and external environments.
a.
stakeholder model of corporate governance
b.
stakeholder bias
c.
code of ethics
d.
stakeholder interaction model
e.
corporate interface model

ANS: D PTS: 1

5. The degree to which a firm understands and addresses stakeholder demands can be referred to as
a.
a stakeholder orientation.
b.
a shareholder orientation.
c.
the stakeholder interaction model.
d.
a two-way street.
e.
a continuum.

ANS: A PTS: 1

6. Which of the following industries tends to generate a high level of trust from consumers and stakeholders?
a.
Insurance
b.
Technology
c.
Banks
d.
Mortgage lenders
e.
Financial services

ANS: B PTS: 1

7. Which of the following is not a benefit that primary stakeholders tend to provide to organizations?
a.
Supplies of capital and resources.
b.
Expertise and leadership
c.
Word-of-mouth promotion
d.
Infrastructure
e.
Pro-bono bookkeeping

ANS: E PTS: 1

8. A stakeholder group that is absolutely

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