Business 200 Chapter 1 Quiz

In: Business and Management

Submitted By oceanspray
Words 1778
Pages 8
True/False

1. Walmart has been called a “template for 21st century capitalism.”
Answer: F
Page: 3

2. A business is any organization that is engaged in making a product or providing a service for a profit.
Answer: T
Page: 4

3. Businesses and society are independent of one another.
Answer: F
Page: 4

4. The stakeholder theory of the firm argues that a firm’s sole purpose is to create value for its shareholders.
Answer: F
Page: 6

5. The instrumental argument for the stakeholder theory of the firm says that companies perform better if they consider the rights and concerns of multiple groups in society.
Answer: T
Page: 6

6. The normative argument for the stakeholder theory of the firm says that the stakeholder view is simply a more realistic description of how companies really work.
Answer: F
Page: 7

7. Nonmarket stakeholders are those that engage in economic transactions with the company as it carries out its primary purpose of providing society with goods and services.
Answer: F
Page: 8

8. Market stakeholders include nongovernmental organizations and the media.
Answer: F
Page: 8

9. Government can be considered both a market and nonmarket stakeholder.
Answer: T
Page: 10

10. The interests of different stakeholders often coincide.
Answer: T
Page: 14

11. Stakeholders involved with one part of a company often may have little or no involvement with another part of the company.
Answer: T

Page: 15

12. Some scholars have suggested that managers pay the most attention to stakeholders possessing the least salience.
Answer: F
Page: 16

13. Urgency refers to the extent to which a stakeholder’s actions are seen as proper or appropriate by the broader society.
Answer: F
Page: 16

14. A stakeholder map is a useful tool, because it enables managers to see quickly how stakeholders feel about an issue and whether…...

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