F.4 Business ch3 supp

1. Which of the following are the stakeholders of a fast-food chain?

(i) The government

(ii) Creditors

(iii)Suppliers

(iv) Distributors

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Which of the following is not a characteristic of illegal or unethical behavior?

• Certain types of unethical behavior are absolutely wrong.

• People can take legal action against illegal behavior.

• Unethical behavior is not specifically written down.

• Illegal behavior affects a society’s citizens.

Which of the following is not a kind of socially responsible corporate behavior?

• Increasing the salary of employees

• Promoting volunteerism among employees

• Producing environmentally-friendly products

• Increasing dividends to shareholders

Which of the following statements concerning the supplier-distributor relationship in the stakeholder management of firms is incorrect?

• A firm has an obligation to make payments promptly according to the terms of its contracts.

• A firm should supply quality products to its distributors.

• The supplying firm has to treat its distributors fairly, regardless of their size.

• Distributors are insignificant stakeholders of a firm, as the firm offers them products and business opportunities.

Which of the following statements regarding good stakeholder management is incorrect?

• A firm increases spending on TV advertising.

• Fair and equitable training and development policies at a company are important.

• Good after-sales service is a basic responsibility of a firm to its customers.

• A firm should comply with government requirements.

Which of the following is not a company’s practice in caring for employees?

• Providing an elderly day care center for employees’ parents

• Giving a box of mooncakes to each staff member during Mid-Autumn Festival

• Timely payment of salaries in accordance with employment contracts

• Establishing a sports club that organizes a wide range of cultural events and recreational activities for employees.

The social responsibilities of a firm include

(i) Producing recyclable products.

(ii)Providing a healthy working environment for employees.

(iii)Maximizing profits made by firm.

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Which of the following is not a stakeholder of ABC bank?

• Mr Lo lent $10,000 to a customer service officer of ABC Bank, who has been a friend of Mr Lo for more than 10 years.

• Mr Chan has taken out a mortgage loan with ABC bank, which he has to repay in instalments over 20 years.

• Lee and Leung Solicitors is one of the legal firms used by ABC Bank to advise it on corporate legal matters

• Ms Lee has bought shares in ABC Bank, a bank listed on the Hong Kong Stock Exchange.

In Hong Kong, employers are legally required to

(i) Make Mandatory Provident Fund contributions for their employees.

(ii) Pay employees a minimum wage.

(iii) Pay disabled employees a special travel allowance.

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A company is considered socially responsible to its creditors if it

(i) Repays loans on time

(ii) Updates creditors regularly on its financial position.

(iii) Informs them of the decision to cease production of products which sell poorly.

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