1) According to general systems theory, boundary exchanges are exemplified by which of the following? A) A purchasing department employee negotiates a price on parts with a supplier. B) An industrial company installs new equipment in its plant to comply with environmental regulations. C) A software company develops an application for a client. D) All of these answers are correct. 2) 2) Which of the following statements is not true about the interactive social system? A) Business is a part of society, and society penetrates far and often into the business. B) Business and society are both separate and connected. C) The boundary between business and society is clear and distinct. D) Business and society need, as well as influence, each other. 3) The instrumental argument says stakeholder management is: A) More effective as a corporate strategy. B) Determined by the amount of stock owned in the firm. C) Simply the right thing to do. D) A more realistic description of how companies really work. 4) Stakeholder groups can include: A) Environmental activists. Shareholders. B) Business support groups. D) All of these answers are correct. 5) 5) All of the following are external stakeholders of the firm except: A) Customers. B) Managers. Shareholders. D) Suppliers. 6) A stakeholder analysis: A) Involves understanding the nature of stakeholder interests. B) Creates equality among all stakeholder interests. C) Allows managers to examine two primary questions. D) All of these answers are correct. 7) Customers can exercise economic stakeholder power by: A) Applying for a job with the company. B) Attending the company's annual meeting. C) Voting on a proposed merger for the company and a competitor. D) Boycotting products if they believe the goods are too expensive. 8) When a community group sues a company for health effects caused by the unsafe disposal of toxic chemicals, this is an exercise of a stakeholder's: A) Voting power. B) Legal power. C) Economic power. D) Political power. 9) 9) What kind of power might a local community use to influence a company's decisions? A) Lobbying government policy makers for regulations. B) Publicizing an issue. ) Challenging whether a specific business activity should continue. D) All of these answers are correct. 10) Stakeholders have been able to form international coalitions more successfully through 10) use of A) Communications technology. C) Unions B) Government regulation D) Community involvement. 11) 11) Because of the risks and opportunities public issues present, organizations need: A) A strong relationship with a lobbying firm or an in-house lobbying department. B) A systematic way of identifying, monitoring, and selecting public issues. ) Executives to be rewarded with substantial bonuses as part of total compensation. D) Tougher government regulations and oversight by political action committees. 12) 12) Customer environmental intelligence includes: A) The cost of producing consumer goods. B) Demographic factors, ) An analysis of the firm's competitors. D) New technological applications. 13) 13) An analysis of the stability or instability of a government is an example of scanning which environment? A) Legal B) Geophysical C) Political D) Social 14) 14) Legal environmental intelligence includes: A) Information regarding costs, prices, and international trade. B) Patterns of aggressive growth versus static maintenance. C) Considerations of patents, copyrights, or trademarks. D) Analysis of local, state, national, and international politics.
