Stakeholder Theory Quiz

Stakeholder groups can include:

• Shareholders

• Business support groups.

• Environmental activists

• All of these answers are correct.

The five types of stakeholders' power recognized by most experts are:

• Voting, economic, political, legal, and informational power.

• Social, legal, environmental, economic, and political power.

• Social, regulatory, voting, governance, and information power.

• Economic, informational, legal, shareholder, and political power.

Which one of the following is considered to be a nonmarket stakeholder of business?

• Customers

• Nongovernmental organizations.

• Creditors.

• Shareholders.

Which statement is not correct about the business-society interdependence?

• Business is a part of society.

• Business is separated from the rest of society by clear boundaries.

• Business activities impact other activities in society.

• Actions by governments rarely affect business.

Which of the following is not an example of stakeholders' economic power?

• A supplier halts shipments to a business customer that demanded very low prices.

• A social group protests a government's decision to raise taxes.

• A local community boycotts a grocery store suspected of inaccurate weight scales.

• An equal rights group refuses to do business with a company that has a discriminatory hiring policy.

A firm subscribing to the shareholder theory of the firm would mainly be concerned with providing value for its:

• Investors.

• Customers.

• Board of Directors.

• Community.

Corporations that run their operations according to the stakeholder theory of the firm create value by:

• Innovating new products.

• Increasing their stock price.

• Developing their employees' professional skills.

• All of these answers are correct.

All of the following are external stakeholders of the firm except:

• Managers

• Customers.

• Shareholders.

• Suppliers.

Which of the following is the result of the inseparable relationship between business and society?

• All business decisions have a social impact.

• The vitality of business depends on society's actions and attitudes.

• The survival of business is independent of society.

• Both of these answers are correct: All business decisions have a social impact and the vitality of business depends on society's actions and attitudes.

A stakeholder analysis:

• Creates equality among all stakeholder interests.

• Allows managers to examine two primary questions.

• Involves understanding the nature of stakeholder interests.

• Actions by governments rarely affect business.