1. For the past 28 years, ABC, Inc. has made a significant investment of time, money, and other resources to increase the literacy rate in adult Americans. This represents which of these principles of successful collaborative social initiatives?

A. Weigh government influence.
B. Identify a long-term durable mission.
C. Assemble and value the total package of benefits.
D. Leverage core capabilities.

2. According to stakeholder theory, in a survey of over 2000 directors from over 290 U.S. companies, which of these stakeholders was perceived to be least important?

A. Government
B. Employees
C. Stockholders
D. Society

3. Which law revised and strengthened auditing and account standards?

A. Truth in Lending Act of 1968
B. National Environmental Policy Act of 1969
C. Federal Fair Trade Act of 1986
D. Sarbanes-Oxley Act of 2002

4. Which of these is true about Sarbanes-Oxley Act of 2002?

A. The directors and executive officers are required to trade the company's 401(k) plan, profit sharing plan and retirement plan during the blackout period
B. The act requires that the audit committee must be composed entirely of inside officers.
C. Companies are required to extend personal loans to executives and directors.
D. The CEO and CFO must verify every report containing the company's financial statements.

5. A major consequence of the Sarbanes-Oxley Act of 2002 has been the

A. political fallout in congress
B. outsourcing of jobs in lower wage countries
C. super growth in accounting firms in the U.S.
D. reorganizing of the governance structure of American corporations

6. The most critical quality of ethical decision making is

A. economics
B. expeditions
C. objectivity
D. consistency

7. Judging the appropriateness of a particular action based on a goal to provide the greatest good for the greatest number of people is what ethics approach?

A. Moral rights approach
B. Social justice approach
C. Business ethics approach
D. Utilitarian approach

8. Judging the appropriateness of a particular action based on equity, fairness, and impartiality in the distribution of rewards and costs among individuals and groups is what ethics approach used by managers?

A. Utilitarian approach
B. Business ethics approach
C. Moral rights approach
D. Social justice approach

9. A broadly framed but enduring statement of a firm's intent is defined as the company

A. vision
B. credo
C. slogan
D. mission

10. This statement of a company's philosophy usually appears within the mission statement and specifies basic beliefs of a firm.

A. Company slogan
B. Company sponsor
C. Company commercial
D. Company creed

11. This statement presents the firm's strategic intent that focuses the energies and resources of the company on achieving a desirable future.

A. Mission statement
B. Values statement
C. Company statement
D. Vision statement

12. The strategic decision makers in the firm are responsible for

A. rewards
B. daily operations
C. the firm's accounting practices
D. the firm's mission

13. The idea that businesses have a duty to serve society as well as the financial interest of stockholders is called

A. going green
B. corporate audit
C. corporate services
D. corporate social responsibility

14. Which of the following strategic decision makers implement the overall strategy?

A. Board of directors
B. Business managers
C. Functional managers
D. Corporate managers

15. Which level of strategy uses a portfolio approach?

A. Business
B. Operational
C. Corporate
D. Functional

16. Of the three levels of strategy that are part of an organizations decision-making hierarchy, which level develops annual objectives and short-term strategies in such areas as production, operations, and research and development, finance and accounting, marketing, and human relations?

A. Corporate
B. Business
C. Management
D. Functional

17. The behavioral consequences of strategic management are similar to those of

A. authoritative decision making
B. centralized decision making
C. autocratic decision making
D. participative decision making

18. What do strategic managers call a flow of information through interrelated stages of analysis toward the achievement of an aim?

A. Strategic control
B. Process
C. Continuous improvement
D. Long-term objective