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Homework answers / question archive / FPT University BUE 201 CHAPTER 5 1)The law has created a form of business that limits the liability of individuals for the risks involved in business activities
FPT University
BUE 201
CHAPTER 5
1)The law has created a form of business that limits the liability of individuals for the risks involved in business activities. Identify the form of business.
A. Corporation
B. Partnership
C. Limited partnership
D. Proprietorship
2. Legislatures created a form of business called corporations because they thought that businesses could be more efficient in raising the capital necessary for producing goods, services, jobs, and wealth if:
a. multiple owners were involved in the strategic decision making of the firm.
b. there was transparency among all stakeholders.
c. firms had the obligation to justify bad decisions.
d. individuals were protected by limiting the liability of individuals for these activities.
3. According to the Economic Model of CSR, the social responsibility of business managers is to:
a. go beyond legal responsibilities to help the society. B. pursue profit within the law.
C. concentrate on customer satisfaction.
D. produce or provide high quality products or services with minimum or no defects.
4. Which of the following is true about the economic model of CSR?
a. It holds that businesses should not only pursue profits, but it should also do its part for environment sustainability.
b. It has its roots in the Kantian tradition of ethics.
c. According to this model, profit is a direct measure of how well a business firm is meeting society's expectations.
d. It holds that social goals should be at the heart of a firm's mission.
5. Milton Friedman explains that a corporate executive has a "responsibility to conduct business in accordance with [his or her employer's] desires, which generally will be to make as much money as possible while conforming to the basic rules of society, both those embodied in law and those embodied in ethical custom." This view of corporate social responsibility has its roots in the tradition and in neoclassical economics.
a. deontogical
b. Kantian C. utilitarian
D. virtue
6. Which of the following statements is correct about the Economic Model of CSR?
a. This view of corporate social responsibility has its roots in the Kantian tradition.
b. Milton Friedman's classic 1970 New York Times article, "The Social Responsibility of Business Is to Increase Its Profits," supported this perspective.
c. This view supports and encourages charity and activities that benefit the society.
d. According to this model, a percentage share of profits should be used for the benefit of the society.
7. According to the Economic Model of CSR, the pursuit of profit will continuously work towards the optimal satisfaction of consumer demand which, in the interpretation of is the optimal social good.
a. deontological ethics
b. classicism
c. virtue ethics D. utilitarianism
8. Philosophers distinguish between three different types of responsibilities. The most demanding responsibility is often called duty or obligation in order to indicate that they oblige us in the strictest sense. Identify this responsibility.
a. A business should prevent harm even in those cases where it is not the cause.
b. A business should volunteer for society or environment-friendly work.
c. A business should engage in charitable work for the development of the society. D. A business should not sell a product that causes harm to consumers.
9. Which of the following ethical requirement, in practice, is the type of responsibility established by the precedents of tort law?
a. Responsibility not to cause harm
b. Responsibility to prevent harm
c. Responsibility to engage in charitable work
d. Responsibility to volunteer for society or environment-friendly work
10. Identify the statement that best describes the philanthropic model of corporate social responsibility.
a. From this perspective, business has no strict obligation to contribute to social causes; but it can be a good thing when they do so.
b. This model views business as a citizen of the society in which it operates and, like all members of a society, business must conform to the normal ethical duties and obligations.
c. This model begins with the recognition that every business decision affects a wide variety of people, benefiting some and imposing costs on others.
d. This model holds that a firm's financial goals must be balanced against, and perhaps even over-ridden by, environmental considerations.
11. "Just as individuals have no ethical obligation to contribute to charity or to do volunteer work in their community, business has no ethical obligations to serve wider social goods. But, just as charity is a good thing and something that we all want to encourage, business should be encouraged to contribute to society in ways that go beyond the narrow obligations of law and economics." Identify the model of CSR that reflects this line of thought.
A. Integrative model
B. Stakeholder theory
C. Philanthropic model
D. Social Web model
12. In the philanthropic model of CSR, situations where a business supports a social cause for the purpose of receiving a business benefit in return is similar to:
a. the economic model of CSR.
b. the stakeholder theory.
c. the integrative model of CSR.
d. the sustainability theory.
13. From the perspective of the narrow view of CSR, only philanthropy done for reputational reasons and financial ends is ethically responsible. Identify the correct justification for this perspective.
a. Corporations are already doing their part by selling products and services acceptable by the customers or society at large.
b. Business managers are the agents of owners; they have no right to use corporate resources except to earn owners greater returns on their investment.
c. Philanthropy done for reputational reasons and financial ends is profitable for corporations.
d. Ethical responsibility is required when stakeholders have been harmed directly or indirectly.
14. Identify the model of CSR that views business as a citizen of the society in which it operates, and like all members of a society, business must conform to the normal ethical duties and obligations that we all face.
a. Integrative model
b. Philanthropic model
c. Altruistic model D. Social Web model
15. According to philosopher Norman Bowie, there is a "moral minimum" that we expect of every person, whether they are acting as individuals or within corporate institutions. Identify this "moral minimum."
a. Believe in God
b. Respect human rights
c. Help the needy
d. Avoid stealing
16. According to philosopher Norman Bowie, managers have a responsibility to maximize profits as long as they:
a. comply with the moral minimum and cause no harm.
b. do charitable work and cause no harm.
c. comply with the moral minimum and do charitable work.
d. obey the law.
17. Identify the theory that begins with the recognition that every business decision affects a wide variety of people, benefiting some and imposing costs on others.
a. Stakeholder theory
b. Integrative theory
c. Altruistic model
d. Agency theory
18. An individual who argues that firms should be managed for the sole benefit of stockholders is defending the:
a. philanthropic model of CSR.
b. social web model of CSR.
c. integrative model of CSR. D. economic model of CSR.
19. Identify the requirement that is common to utilitarianism and stakeholder theory.
a. To follow the law of "moral minimum."
b. To consider the consequences of management decisions for the well-being of all affected groups.
c. To contribute to society in ways that go beyond the narrow obligations of law and economics.
d. To integrate social and economic goals.
20. Corporate managers who fail to give due consideration to the rights of employees and other concerned groups in the pursuit of profit are treating these groups as means to the ends of stockholders. This is unjust according to the tradition.
a. Utilitarian
b. Classicism C. Kantian
D. Philanthropic
21. CSR literature assumes a tension between the pursuit of profit and social responsibility. How can organizations overcome this tension?
A. By utilizing a percentage of profit on social causes.
B. By doing charitable work to build good reputations within the community. C. By pursuing social ends as the very core of their mission.
D. By doing charitable work with the intension to do good in the society.
22. For-profit organizations that prioritize social entrepreneurship and sustainability as a central part of their strategic mission are pursuing the model of CSR.
a. integrative
b. economic
c. social web
d. philanthropic
23. An individual who points out that all economic activity exists within a biosphere that supports all life, and argues that the present model of economics is already running up against the limits of the biosphere's capacity to support life is a strong defender of the:
a. philanthropic model of CSR.
b. stakeholder version of CSR. C. sustainability version of CSR.
D. social web model of CSR.
24. Which of the following versions of CSR suggests that the long-term financial well-being of every firm is directly tied to questions of how the firm both affects and is affected by the natural environment?
a. Social web
b. Philanthropic
c. Social entrepreneurship D. Sustainability
25. Which of the following can be a problem with CSR for reputation building? A. Social responsibility is then merely social marketing.
B. CSR for reputation building can be worthless because the measure of positive reputation gained by CSR is impossible to calculate.
C. CSR for reputation building may include instances where profits have to be sacrificed for social causes.
D. Firms engaging in CSR for reputation may lose the positive response if these activities are not done on a consistent basis.
26. The practice of attending to the "image" of a firm is referred to as: A. reputation management.
B. branding.
C. crisis management.
D. gentrification.
27. One important justification offered for CSR, what is often called enlightened self-interest, presumes that:
a. measurement of bottom-line impact of ethical decision making is unimportant.
b. unethical decisions lead to more profits than ethical decisions.
c. bottom-line impact of ethical decision making can be measured and compared. D. good ethics can also be good business.
28. While we are all familiar with examples of unethical decisions leading to high profits, there is general agreement that, in the long run, ethics pays off. What is the challenge associated with ethical pay offs?
a. It is a long-term pay off which would not have a significant impact.
b. It is very less in comparison to profits.
c. It is very difficult to measure the ethical pay off.
d. It can easily be duplicated by competitors.
