Expert Answers

1. A corporation might offer its approach to workplace sexual harassment in its:
a. business plan.
b. code of ethics.
c. prospectus.
d. quarterly statement.

2. Two cable companies propose a merger that would give them approximately 90% of the market share in a community. Which government agency would approve or reject this merger?
a. The FDA
b. The SPCA
c. The FTC
d. The SEC

3. Who is generally given credit for introducing fundamental human rights into the American political system?
a. Thomas Hobbes
b. John Locke
c. Thomas Jefferson
d. Alain Locke

4. A member of a community who is affected by a corporation’s acts but does not own stock in that corporation is best referred to as a:
a. stockholder.
b. shareholder.
c. stakeholder.
d. stockman.

5. The government tells a company that if it doesn’t add a warning label to its product, the government will pass a law that requires such warning labels. This is an example of:
a. capital asset pricing models.
b. direct government mandated regulation.
c. unfair labor practices
d. indirect government mandated self-regulation.

6. Bob is the CEO of a major corporation. Sue is the CFO (Chief Financial Officer) of the same corporation. Bob wants to focus exclusively on profits, but Sue wants to emphasize social responsibility. Bob and Sue may be experiencing:
a. a declining rate of profit.
b. marginal liability.
c. organizational integrity.
d. organizational schizophrenia.

7. Frank invested $10,000 in a steel company that went out of business and had over a million dollars in outstanding debt. Frank only loses his $10,000 dollars due to:
a. limited credibility.
b. perpetual liability.
c. corporate personhood.
d. limited liability.

8. Corporations may sometimes have trouble reconciling:
a. profits and social responsibility.
b. social responsibility and ethics.
c. ethical values and morality.
d. profits and shareholder dividends.

9. Jane is a corporate officer who, in negotiating with another company, makes misleading and even false statements to exaggerate her company’s market share. Jane might be said to be:
a. engaged in bluffing.
b. engaged in arbitrage.
c. engaged in a boycott.
d. engaged in a hostile takeover