Question 1 of 20

5.0 Points

Which statement is NOT correct about the business-government-society interdependence?

A. Most business actions impact others in society.

B. Few governmental actions have a direct or indirect impact on business.

C. Business and government continuously affect all segments of the general public.

D. It demands that managers acquire a conceptual understanding of these relationships.

Question 2 of 20

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

A. All business decisions have a social impact.

B. The vitality of business depends on society’s actions and attitudes.

C. The survival of business is independent of society.

D. Both A and B, but not C

Question 3 of 20

Which argument says that stakeholder management realistically depicts how companies really work?

A. Descriptive argument

B. Instrumental argument

C. Normative argument

D. Fiduciary argument

Question 4 of 20

Which of the following is NOT considered to be a nonmarket stakeholder?

A. Government agencies

B. The natural environment

C. Activist groups

D. Non-governmental organizations

Question 5 of 20

A stakeholder analysis:

A. creates equality among all stakeholder interests.

B. allows managers to examine two primary questions.

C. involves understanding the nature of stakeholder interests.

D. All of the above

Question 6 of 20

Which of the following is NOT an example of stakeholders’ economic power?

A. A toy manufacturer halts supplies to a customer that demanded very low prices

B. A social group protests a government’s decision to raise taxes

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

D. A social organization demands the closure of a business that has a discriminatory hiring policy

Question 7 of 20

When a community group sues a company for health effects caused by unsafe toxic chemicals disposal, it is an exercise of a stakeholders’:

A. legal power.

B. voting power.

C. economic power.

D. political power.

Question 8 of 20

Stakeholders stand out to managers when they exhibit:

A. integrity, power, and legitimacy.

B. power, legitimacy, and urgency.

C. integrity, loyalty, and power.

D. legitimacy, loyalty, and urgency.

Question 9 of 20

Stakeholders have been able to form international coalitions more successfully through use of:

A. government regulation.

B. community involvement.

C. communications technology.

D. unions.

Question 10 of 20

Businesses’ relationships with stakeholders have evolved in the following order:

A. reactive, proactive, interactive, and cyberactive relationships.

B. inactive, reactive, proactive, and interactive relationships.

C. self-active, interactive, proactive, and cyberactive relationships.

D. inactive, internally-active, externally-active, and change-active relationships.

Question 11 of 20


McDonalds’ response to critics of the company’s treatment of animals include:

A. hiring experts to analyze options.

B. experimenting with slaughter house audits.

C. convening an Animal Welfare Council.

D. All of the above

Question 12 of 20

5.0 Points

The emergence of a public issue indicates that:

A. a gap has developed between what stakeholders expect and what an organization is actually doing.

B. technology is forcing ethics and business strategy closer together.

C. consumers are unaware of how an organization’s actions affect them.

D. All of the above

Question 13 of 20

5.0 Points

Public affairs management addresses government issues through:

A. advocacy ads.

B. liability lawsuits.

C. proxy election management.

D. All of the above

Question 14 of 20

5.0 Points

The issues management process is a:

A. beneficial tool used only to maximize the positive effects of a public issue for the organization’s advantage.

B. beneficial tool used only to minimize the negative effects of a public issue for the organization’s advantage.

C. systematic process companies use when responding to public issues that are of greatest importance to the business.

D. confusing process that is rarely used to help top management within an organization.

Question 15 of 20

5.0 Points

Legal environmental intelligence includes:

A. patterns of aggressive growth versus static maintenance.

B. analysis of local, state, national, and international politics.

C. considerations of patents, copyrights, or trademarks.

D. information regarding costs, prices, and international trade.

Question 16 of 20

5.0 Points

One of the most valued benefits of the public affairs function is:

A. The ability to acquire competitive intelligence that may not be available through legal means.

B. The ethical acquisition of competitor intelligence.

C. To enforce the company’s code of conduct against using illegally obtained competitor intelligence.

D. To influence top managers that competitive intelligence is important.

Question 17 of 20

5.0 Points

Once an organization has implemented the issue management program, it must:

A. use trade associations or consultants to follow high priority issues.

B. study the results and make necessary adjustments.

C. not limit the number of public issues the firm can address.

D. pick a selected number of issues to address immediately.

Question 18 of 20

5.0 Points

Issue management:

A. often under-emphasizes technique.

B. often overemphasizes technique.

C. often overemphasizes creative problem solving.

D. is an art, not a science.

Question 19 of 20

5.0 Points

Which of the following supported WalMart’s proposal to build stores in Inglewood, CA?

A. Ingelwood’s Mayor

B. Church groups

C. Community groups

D. The United Food and Commercial Workers Union

Question 20 of 20

5.0 Points

Harnessing human imagination to create new approaches to the concerns of modern society is an example of:

A. personal identification.

B. networks.

C. business profits.

D. technology.