1. Which statement is not correct about the business-society interdependence?
A. Business is a part of society.
B. Business is is separated from the rest of society by clear boundaries.
C. Business activities impact other activities in society.
D. Actions by governments rarely significantly affect business.
2. Which of the following examples best illustrates the boundary exchanges a company would encounter according to the general systems theory?
A. An industrial company installs new equipment in its plant to comply with environmental regulations.
B. A software company develops an application for a client.
C. A purchasing department employee negotiates a price on parts from a supplier.
D. All of the above.
3. Which of the following statements is not true about the interactive social system?
A. Business and society need, as well as influence, each other.
B. The boundary between business and society is clear and distinct.
C. Business is a part of society, and society penetrates far and often into the business.
D. Business and society are both separate and connected.
4. A firm subscribing to the ownership theory of the firm would mainly be concerned with providing value for its:
A. Shareholders.
B. Customers.
C. Board of Directors.
D. Community.
5. Which of the following statements is true about the relationship between business and the community?
A. It is one of mutual interdependence.
B. Business has more responsibility towards community than the community does towards business.
C. Communities possess more social power than businesses do.
D. All of the above statements are true.
6. The term civic engagement describes:
A. The active involvement of businesses and individuals in improving communities.
B. A competitive, free market environment.
C. Strong governmental regulation to control businesses at the municipal level.
D. A close and collaborative business-government relationship.
7. Which of the following is a good way for a business to express its commitment to corporate citizenship?
A. By establishing community relations programs.
B. By behaving responsibly toward all its stakeholders.
C. By correcting problems associated with its operations.
D. All of the above.
8. Which of the following is a reason for businesses to get involved in the community?
A. To win local support for business activity.
B. To build social capital.
C. To meet stakeholder demands.
9. To influence government policymakers’ actions, an information strategy involves:
A. Business leaders speaking before government policymakers.
B. Government policymakers hiring special interest groups for fact-finding projects.
C. Businesses listening to government policymakers in order to develop a corporate strategy.
D. Gaining support from other affected organizations.
10. A corporate political strategy does not:
A. Hinder a competitor’s ability to compete economically.
B. Seek to continue the firm’s economic survival or growth.
C. Determine the legal limits allowed for campaign financing.
D. Exercise a firm’s right to a voice in government affairs.
11. A common tactic in a financial-incentive political strategy is:
A. Lobbying.
B. Legal challenges.
C. Expert witness testimony.
D. Political contributions.
12. Which of the following is not a constituency-building strategy tool?
A. Expert witness testimony.
B. Advocacy advertising.
C. Public relations.
D. Legal challenges.