WorksheetsBUS 240 Chapter 4 Three Special Stakeholders
Total questions: 20
Worksheet time: 10mins
Corporate social responsibility (CSR) represents a company’s:
Requirement to follow all federal regulations
Short-term plan to satisfy shareholders
Long-term commitment to ethical, social, and environmental goals
Obligation only to maximize profit
The Japanese concept nemawashi used to describe CSR means:
Building strong roots through consultation and groundwork
Cutting costs to increase efficiency
Eliminating outside stakeholder input
Focusing solely on shareholders’ interests
The main advantage of limited liability is that:
Corporations avoid paying taxes
Owners cannot lose more than the amount they invested
Shareholders are guaranteed dividends
Creditors have unlimited recourse to personal assets
Which of the following business forms also offers limited liability protection?
Sole proprietorship
General partnership
Limited liability company (LLC)
Cooperative
The concept of shareholder primacy asserts that:
Managers must consider environmental goals first
Corporations exist to maximize shareholder wealth
Employees’ interests come before profits
The government controls corporate decision-making
In Dodge v. Ford Motor Co. (1919), the court ruled that:
Ford could reinvest profits to improve worker conditions
Ford must operate primarily in the interest of shareholders
Corporations must balance stakeholder and environmental goals
Managers are free from shareholder oversight
The business judgment rule gives corporate managers:
Unlimited control with no accountability
Legal protection for decisions made in good faith
The right to ignore shareholder votes
The ability to violate corporate bylaws
Shlensky v. Wrigley (1968) demonstrated that:
Corporate managers could consider community interests
Baseball stadiums could not operate at night
Shareholders always have final authority
Managers must maximize dividends
Burwell v. Hobby Lobby (2014) expanded:
religious freedom protections for closely held corporations
the power of Congress to regulate interstate commerce
the right to free speech in public schools
the scope of executive privilege
The “halo effect” in CSR refers to:
Consumers associating CSR practices with higher product quality
Reduced profit due to social spending
Negative publicity from unethical behavior
The financial losses caused by sustainability programs
Economist Milton Friedman argued that:
CSR improves long-term shareholder value
Executives should pursue social goals at the expense of profit
Only individuals—not corporations—should decide how to contribute to social causes
The government should control corporate giving
A fiduciary duty requires corporate directors to:
Prioritize their personal values
Maximize short-term profit only
Act with loyalty and care in the corporation’s best interests
Follow whatever shareholders demand
Earth jurisprudence is based on the belief that:
Only humans have legal rights
The environment should be recognized as a legal entity with rights
The tragedy of the commons describes:
How unregulated use of shared resources leads to depletion
How governments restrict free markets
The benefits of privatizing natural resources
The success of voluntary environmental programs
Which of the following best defines sustainability?
Short-term business growth regardless of impact
Long-term balance between economic activity and environmental and social health
The elimination of all environmental regulations
Maximizing output through resource exploitation
ISO 14000 standards focus on:
Workplace discrimination policies
Environmental management and sustainability practices
International trade regulations
Corporate tax compliance
LEED certification evaluates:
Corporate governance transparency
Employee training and development
Energy efficiency and environmental design of buildings
Executive compensation systems
A Pigovian tax is designed to:
Subsidize polluting industries
Deter harmful activities by charging a fee equal to their social cost
Eliminate all government revenue
Protect monopolies from competition
The revolving door in politics refers to:
Citizens voting for different parties
Officials moving between regulatory agencies and the industries they oversee
Repeated lobbying visits by the same company
Voters switching political affiliations
The Citizens United (2010) Supreme Court case ruled that:
Corporations could not spend money on political campaigns
Political spending by corporations is protected as free speech
Campaign finance laws are enforceable by the SEC
Only individuals may donate to candidates
