Multiple Choice Answers

1. A firm subscribing to the ownership theory of the firm would mainly be concerned with providing value for its:
a. shareholders.
b. customers.
c. Board of Directors.
d. community

2. The emergence of technology-enabled popular fads is often referred to as:
a. memes.
b. social monitoring.
c. image advertising.
d. blogs
3. The costs of corporate social responsibility may ultimately be passed on to the:
a. employees through fewer health benefits.
b. consumer through high prices.
c. investor through stock splits.
d. All of the above
4. When the CEO of General Electric appointed the company’s first VP of Corporate Citizenship, he was demonstrating:
a. Enlightened Self-Interest.
b. a responsibility to stockholders.
c. an attempt to balance economic, legal and social responsibilities.
d. the Iron Law of Responsibility
5. Under the U.S. Corporate Sentencing Guidelines, if a firm has developed a strong ethics program, corporate executives found guilty of criminal activity may have their sentence:
a. increased.
b. reduced.
c. unaffected.
d. decided by the company.
6. Governments being asked to ban the use of cell phones by drivers is an example of a public policy:
a. input.
b. goal.
c. effect.
d. tool.
7. Deregulation has occurred in the following industries:
a. commercial airlines, sheet metal and interstate trucking.
b. commercial airlines, railroads and financial institutions.
c. commercial airlines, interstate trucking and silicon chip manufacturing.
d. financial institutions, railroads and silicon chip manufacturing.
8. A shared resource, such as land, air, or water, that a group of people uses collectively is a(n):
a. economic village.
b. collective resource.
c. global unification.
d. commons.
9. The information phase of technology primarily requires:
a. providing services.
b. intellectual and electronic skills.
c. manual and machine skills.
d. the same skills as needed in previous phases.
10. Which if the following is NOT a legal right of stockholders?
a. To vote on members for the board of directors
b. To vote on major mergers and acquisitions
c. To vote on changes in the corporate charter and proposals
d. To vote on who will become chief executive officer (CEO)