FPT University

BUE 201

CHAPTER 9

1)The Triple Bottom Line approach involves the measurement of business success of sustainable businesses and sustainable economic development in terms of three factors. Identify them.

1. 1. Economic, legal, and environmental sustainability
   2. Economic, ethical, and environmental sustainability
   3. Economic, legal, and competitive sustainability
   4. Legal, competitive, and environmental sustainability

2. Knowing what the future must be, creative businesses then look backwards to the present and determine what must be done to arrive at that future is a process called:
   1. Backward integration
   2. Forecasting
   3. Forward integrating
   4. Backcasting

3. Which of the following was the first phase of modern environmentalism?
   1. The ecology movement
   2. The Ex-situ movement
   3. The conservation movement
   4. The In-situ movement

4. Conservationists argue against the exploitation of natural resources as if:
   1. they can provide an inexhaustible supply of material.
   2. it has already been depleted.
   3. effective businesses can produce all the natural resources.
   4. it is illegal to use them without buying them.

5. The approach that animals with a central nervous system feel pain is akin to the                         ethical framework, which asserts an ethical responsibility to minimize pain.
   1. Kantian
   2. virtue ethic
   3. utilitarian
   4. deontological

6. The approach that at least some animals have the cognitive capacity to possess a conscious life of their own is akin to the                                           ethical framework, which asserts that we have a duty not to

treat these animals as mere objects and means to our own ends.

1. 1. Kantian
   2. virtue ethic
   3. utilitarian
   4. social web

7. A market-based approach to resolving environmental challenges is reminiscent of the                        

view of CSR.

1. 1. philanthropic
   2. economic
   3. social web
   4. integrative

8. Defenders of the market approach contend that environmental problems are economic problems that deserve economic solutions. Fundamentally, environmental problems involve the:
   1. lack of knowledge to produce limited resources.
   2. inability of businesses to produce and sell limited resources.
   3. lack of use of appropriate substitutes for limited resources.
   4. allocation and distribution of limited resources.

9. In economic terms, all resources are infinite because:
   1. they are ‘fungible.'
   2. governmental regulations ensure that resources are distributed fairly.
   3. the advent of technology ensures that all resources are recyclable.
   4. efficient markets will distribute resources efficiently.

10. What do you understand by the statement "all resources are fungible?"
    1. They can be regulated and controlled by the government.
    2. They can be replaced by substitutes.
    3. They cannot be duplicated.
    4. They can be recycled.

11. The fact that future generations, neighbors, etc. will bear the brunt of environmental pollution shows that market failures can occur through:
    1. lack of ability to create a price for important social goods.
    2. the existence of externalities.
    3. the distinction between individual decisions and group decisions.
    4. the distinction between individual decisions and group consequences.

12. Internalizing external costs and assigning property rights to unowned goods such as wild species are two responses to market failures by defenders of a narrow economic view of corporate social responsibility. These ad hoc attempts to repair market failures are environmentally inadequate because of the:
    1. bastcasting problem.
    2. fungibility problem.
    3. biomimicry problem.
    4. first-generation problem.

13. Markets can work to prevent harm only through information supplied by the existence of market failures. This is termed as the:
    1. biomimicry effect.
    2. bastcasting problem.
    3. first-generation problem.
    4. primary market effect.

14. Before environmental legislation was enacted, the primary legal avenue open for addressing environmental concerns was:
    1. tort law.
    2. international law.
    3. public law.
    4. elder law.

15. Which of the following statements is not a problem faced by the regulatory approach to environmental challenges?
    1. It underestimates the influence that business can have in establishing the law.
    2. This approach underestimates the ability of business to influence consumer choice.
    3. It established standards that effectively shifted the burden from those threatened with harm to those who would cause the harm.
    4. If we rely on the law to protect the environment, environmental protection will extend only as far as the law extends.

16. The three goals of sustainable development that include economic, environmental, and ethical sustainability are referred to as the:
    1. Tripartite Goals.
    2. three pillars of sustainability.
    3. Three Pronged charter.
    4. shoulders of sustainability.

17. The                 was charged with developing recommendations for paths towards economic and social development that would not achieve short-term economic growth at the expense of long-

term environmental and economic sustainability.

1. 1. Bluewash commission
   2. binding triad
   3. Barentsburg commission
   4. Brundtland commission

18. Identify the correct statement about the Brundtland Commission.
    1. The United Nations' World Commission on Trading and Development (WCTD) is commonly known as the Brundtland Commission, named after the place in Norway where the summit was held.
    2. It was charged with developing recommendations for paths towards economic and social development that would not achieve economic growth at the expense of underdeveloped and developing countries.
    3. It offered what has become the standard definition of sustainable development. "Sustainable development is development that meets the needs of the present without compromising the ability of future generations to meet their own needs."
    4. It led to trading agreements like NAFTA, CAFTA, and the EU.

19. The                explains the nature of economic transactions in the terms of a flow of resources from businesses to households and back again.
    1. circular flow model
    2. three pillars of sustainability
    3. triple bottom line approach
    4. bilinear model

20. Identify the correct statement about the "circular flow model."
    1. It differentiates natural resources from the other factors of production.
    2. It explains the origin of resources.
    3. It treats economic growth as both the solution to all social ills and also as boundless.
    4. It holds that resources are finite.

21. Which of the following statements is true about the "circular flow model?"
    1. The economy need not grow to keep up with population growth.
    2. The possibility that the economy cannot grow indefinitely is not part of this model.
    3. The economy need not grow to provide for a higher standard of living.
    4. The economy cannot grow indefinitely.

22. According to economist Herman Daly, the emphasis of economic growth as the goal of economic policy will inevitably fail unless it is realized that:
    1. the population of the world needs to be controlled.
    2. the economy is a subsystem within earth's biosphere.
    3. resources are infinite.
    4. efficient markets need to be stabilized to ensure higher economic returns.

23. According to model of the economy (or Economic System) as a subset of the biosphere (or Ecosystem), we recognize that neither matter nor energy can truly be "created," it can only be transferred from one form to another. This conservation of matter/energy is consistent with the:
    1. first law of thermodynamics.
    2. second law of thermodynamics.
    3. third law of thermodynamics.
    4. fourth law of thermodynamics.

24. According to model of the economy (or Economic System) as a subset of the biosphere (or Ecosystem), entropy increased within a closed space (the second law of thermodynamics) implies that:
    1. the amount of re-usable products decreases with increase in production.

1. 2. the economy exists within a finite biosphere.
   3. wastes are not produced at each stage of economic activity.
   4. the amount of usable energy decreases over time.

25. According to economist Herman Daly, over the long term, resources and energy cannot be used, nor waste produced, at rates which the biosphere cannot replace or absorb them without harming its ability to sustain life. These are what Daly calls the:
    1. "economic limitations."
    2. "the backcasting effect."
    3. "biophysical limits to growth."
    4. "un-expendable boundaries."

26. "Doing more with less" has been an environmental guideline for decades. This version of the first principle is sometimes called:
    1. biomimicry.
    2. cradle-to-grave.
    3. cradle-to-cradle.
    4. eco- efficiency.

27. Estimates suggesting that with present technologies, businesses can readily achieve at least a fourfold increase in efficiency, and perhaps as much as a tenfold increase. This can be achieved through:
    1. biomimicry.
    2. eco-efficiency.
    3. the cradle-to-cradle responsibility.
    4. the take-make-waste model.

28. "Closed-loop" production seeks to integrate what is presently waste back into production. In an ideal situation, the waste of one firm becomes the resource of another, and such synergies can create eco-industrial parks. This principle is often referred to as:
    1. biomimicry.
    2. eco-efficiency.
    3. biosynergy.
    4. backcast.

29. The evolution of business strategy towards biomimicry can be understood along a continuum. The earliest phase has been described as "                                           ," where business takes resources, makes products out of them, and discards whatever is left over.
    1. cradle-to-grave
    2. take-make-waste
    3. cradle-to-cradle
    4. eco-efficiency

30. The evolution of business strategy towards biomimicry can be understood along a continuum. A second phase envisions business taking responsibility for its products from "

             ." This responsibility holds that a business is responsible for the entire life of its products, including the ultimate disposal even after the sale.

1. 1. cradle-to-grave
   2. take-make-waste
   3. cradle-to-cradle
   4. eco-efficiency

31. Cradle-to-grave and cradle-to-cradle responsibilities are part of the                       sustainable business principle.
    1. eco-friendly
    2. backcasting
    3. biomimicry
    4. take-make-waste

32. Identify the model that would hold a business liable for groundwater contamination caused by its products even years after they had been buried in a landfill.
    1. Backcast model
    2. Eco-efficiency model
    3. Take-make-waste model
    4. Cradle-to-grave model

33. Identify the responsibility which holds that a business should be responsible for incorporating the end results of its products back into the productive cycle.
    1. Backcasting
    2. Cradle-to-cradle
    3. Take-make-waste
    4. Cradle-to-grave

34. Which of the following responsibilities entail an incentive to redesign products so that they can be recycled efficiently and easily?

1. 1. Cradle-to-grave
   2. Backcasting
   3. Cradle-to-cradle
   4. Eco-efficiency