The concept that proposes private corporations have responsibilities to society that extend

beyond making a profit is known as => B) social responsibility.

According to Archie Carroll, the responsibilities defined by government in laws for

management to obey are => A) legal responsibilities.

According to Archie Carroll, the responsibilities that management of a business organization

assumes which are purely voluntary obligations are => E) discretionary responsibilities.

The term "social responsibility," according to Archie Carroll, can be viewed as a combination
of an => A) organization's ethical and discretionary responsibilities.

Archie Carroll's four responsibilities listed in order of priority are => C) economic, legal, ethical,
and discretionary.

Society generally expects firms to work with employees and the company to plan for layoffs.
This is an example of which of Archie Carroll's responsibilities? => D) ethical

Providing daycare centers to employees is an example of which of Archie Carroll's

responsibilities? => E) discretionary

Milton Friedman's position on social responsibility => B) appears to be losing traction with
business executives.

As societal values evolve, it is likely that the ________ responsibilities of today may become the
________ responsibilities to tomorrow. => C) discretionary; ethical

Being socially responsible => B) has opened doors in local communities.

Which of the following is not one of the examples provided as an organizational benefit received
from being socially responsible? => D) They are guaranteed to maximize resource productivity
and reduce the average payback period of investment.

A 2012 survey of 169 CFOs at publicly traded companies in the United States found what
percent intentionally misrepresented their economic performance primarily to influence stock
price? => B) 20%

An overarching strategy that explicitly communicates the firm's ethical relationship with its
stakeholders is => A) an enterprise strategy.

Target's efforts to offer brands from companies with ethical track records and community
involvement help the retailer attract socially concerned younger consumers. This is an example
of => A) social capital.

The Dow Jones Sustainability Index includes => C) environmental, economic, and social
sustainability.

In order for a business to be sustainable, it must satisfy which of Carroll's responsibilities? => E)
all of the above

The first step in stakeholder analysis is to => A) identify primary stakeholders.

All of the following are considered primary stakeholders EXCEPT => B) governments.

All of the following are considered secondary stakeholders EXCEPT => B) suppliers.

Which of the following statements is not true concerning secondary stakeholders? => E)
Secondary stakeholders have sufficient bargaining power to directly affect the corporation's
activities.

Which of the following companies was cited by the text as an example of a company which does
its best to consider its responsibilities to its primary and secondary stakeholders when making
strategic decisions? => C) Johnson & Johnson

The ________ has been measuring the state of ethics in organizations since 2007. => D) Ethics
Resource Center

According to a 2013 survey by the Ethics Resource Center, which of the following was cited as a
significant positive trend? => A) The percentage of firms providing ethical training rose to an
all-time high of 81%.
As opposed to rule-based countries, relationship-based countries tend to => D) be less
transparent and have a higher degree of corruption.

Of the six values measured by the Allport-Vernon-Lindzey Study of Values test, both U.S. and
British executives consistently score highest on ________ values and lowest on ________
values. => C) economic and political; social and religious

Rule-based governance => B) relies on publicly verifiable information.

Which of the following is the most common reason given by surveyed executives for
bending the rules to attain their objectives? => A) organizational performance required it

Former Enron Vice-President Sherron Watkins used the ________ analogy to explain why
executives at Enron engaged in unethical and illegal actions. => D) frogs in boiling water

Some people claim that morality is relative to some personal, social, or cultural standard and that
there is no method for deciding whether one decision is better than another. This is called => E)
moral relativism.

All of the following reasons provide rationale for unethical behavior EXCEPT => D) agreement
among stakeholders and business people that unethical behavior is acceptable.

All of the following are one of the four types of moral relativism EXCEPT => C) principled
relativism.

Role relativism is based on the belief that => C) social roles carry with them certain obligations.

"When in Rome, do as the Romans do" reflects which type of moral relativism? => D) cultural
relativism

In 2011, the Ethics Resource Center found that ________ percent of employees surveyed had
witnessed misconduct at work and ________ percent had reported it. => D) 45; 65

Blindly following orders reflects which type of moral relativism? => B) role relativism
According to a 2011 survey by the Ethics Resource Center, which was not cited as one of the
most common questionable behaviors that employees engage in? => A) cutting corners on
quality

According to Kohlberg, the first level of moral development, characterized by concern for self, is
called => D) pre-conventional.

According to Kohlberg, the second level of moral development, characterized by considerations

of society's laws and norms, is called => C) conventional.

According to Kohlberg, the third level of moral development, characterized by a person's

adherence to an internal moral code, is called => A) principled.

According to Kohlberg, what stage of moral development do the vast majority of people in the
United States occupy? => B) conventional stage

A code of ethics is important to clarify company expectations of employee conduct in various

situations and to => B) make it clear that the company expects its people to recognize the ethical
dimensions in decision and actions.

In support of whistle-blowers, the U.S. False Claims Act gives whistle-blowers what
percentage of any damages recovered in cases where the government is defrauded? => B) 15-
30%

According to a 2011 National Business Ethics survey, what percent of respondents who
observed corporate misconduct rated their cultures as weak? => A) 90

Managers who want to improve ethical behavior should take actions such as => E) all of the
above

Ethics is defined as => C) consensually accepted standards of behavior for an occupation, trade,
or profession.

Employees who report illegal or unethical behavior on the part of others are known as => B)
whistleblowers.
A code of conduct that regulates supplier conduct => C) is recommended if the company
outsources manufacturing to a company in another country.

Morality is defined as => B) a general rule of conduct of personal behavior, based on religious or
philosophical grounds.

Law is defined as => A) formal codes that permit or forbid certain behaviors and may or may not
enforce ethics or
morality.

The approach to ethical behavior which proposes that actions and plans should be judged by their
consequences, thus producing the greatest benefit to society with the least harm or the lowest
cost is called => C) utilitarian approach.

The approach to ethical behavior which proposes that human beings have certain fundamental
rights that should be respected in all decisions, thus avoiding interfering with the rights of others
is called => A) individual rights approach.

According to the utilitarian approach, CEOs give priority to the stakeholders who have the most
=> C) power, legitimacy, and urgency.

According to the utilitarian approach, stakeholders who have a legal or moral claim on company
resources have => B) legitimacy.

The approach to ethical behavior, which proposes that decision makers be equitable, fair, and
impartial in the distribution of costs and benefits to individuals and groups is called => D) justice
approach.

A problem with the utilitarian approach is => E) that it is difficult to recognize all the benefits
and costs of any particular decision.

Which approach to ethical behavior can encourage selfish behavior when a person defines a
personal need or want as a "right"? => B) individual rights

Treating people in the same way who are similar on relevant dimensions such as job
seniority, is an example of => D) distributive justice.

The principle, which proposes that punishment should be determined on a proportional basis to
the "crime" is called => B) retributive justice.

The principle, which argues that wrongs should be compensated in proportion to the offense
suffered is called => A) compensatory justice.

Issues in affirmative action such as reverse discrimination are examples of conflicts between =>
C) distributive and compensatory justice.

According to Cavanagh, using the ________ criterion, to determine if padding an expense

account is ethical or not, one would ask if it optimizes the satisfactions of all stakeholders. => B)
utility

Using the Golden Rule and never treating another human being simply as a means but always as
an end are the categorical imperatives of => D) Immanuel Kant.

The combination of the degree of complexity and the degree of change existing in an
organization's external environment is/are called => C) environmental uncertainty.

According to the text, one reason environmental uncertainty is a threat to strategic managers is
because => D) it hampers their ability to develop long-range plans.

Which of the following is NOT descriptive of external environmental scanning? => vE) Used to
identify strengths and weaknesses.

The corporation's task environment => B) includes those elements or groups within an
organization's industry.

Which of the following is NOT an element of the organization's task environment? => D)
technological developments

Which environment was generally perceived by business people to be a given until the 20th
century? => B) the natural environment
Which of the following is NOT a major force in the societal environment? => B) labor forces

All of the following are technological breakthroughs already having a significant impact on
many industries EXCEPT => A) growing health consciousness.

Which societal force includes demographic trends? => E) sociocultural forces

Which of the following is NOT one of the eight sociocultural trends mentioned in the text? =>
D) Increasing food consumption.

Which is the largest of the current US generations? => A) Baby Boomers

A company with significant assets and activities in multiple countries is known as a(n) ________.
=> A) multinational corporation

When strategic managers have a willingness to reject unfamiliar as well as negative information
it is referred to as => D) strategic myopia.

The issues priority matrix used in environmental scanning is composed of two axis or dimensions
which are labeled => C) probability of occurrence and probable impact on the corporation.

What are the key environmental trends that are judged to have a medium to high probability of
occurrence and a medium to high probability of impact on the corporation? => A) external
strategic factors

Industry analysis is primarily concerned with a corporation's => B) task environment.

According to Porter, the corporation is most concerned with => A) the intensity of competition
within its industry.

In addition to Porter's Five Forces, another force added in the text is => B) other stakeholders.
The collective strength of the interaction of potential entrants, buyers, substitutes, suppliers, firm
rivalry, and other stakeholders determine => C) the ultimate profit potential in the industry
measured in terms of long-run return on invested capital.

According to Porter's model, a strong or high force is likely to reduce profits and can be regarded
as a(n) => D) threat.

According to Porter's model, a low force can enable the company to earn greater profits and can
be regarded as a(n) => B) opportunity.

Which of the following is NOT descriptive of the "threat of new entrants?" => D) Does not
impact industry attractiveness.

Which barrier to entry uses brand identification to force new entrants to spend heavily to
overcome existing customer loyalty? => D) product differentiation

Which barrier to entry uses cost advantages associated with large size? => E) economies of scale

Which barrier to entry is demonstrated by Microsoft's MS-DOS operating system? => C) cost
disadvantages independent of size

Intel was able to gain a significant cost advantage over its competitors in the production and sale
of microprocessors because of => D) economies of scale.

Which of the following is NOT descriptive of intense rivalry among firms? => E) product
offerings that are highly differentiated

Which of the following is NOT descriptive of "threat of substitute products or services?" => C)
Identifying substitutes is relatively easy since they look similar.

A sugar company that is worried that consumers may buy artificial sweetener instead of sugar is
concerned about the => C) threat of substitute products.

Which of the following is NOT descriptive of a high level of bargaining powers of buyers? => E)
A buyer earns high profits and is very insensitive to costs and service differences.
When General Motors considers making its own automotive parts, Delphi Automotive Supply
Company would be concerned with the => B) bargaining power of buyers.

Which of the following is NOT descriptive of a high level of bargaining power of suppliers? =>
A) Substitutes are readily available.

Other software companies could not compete with Microsoft based on the hesitation of
consumers to try a new software. Which of Porter's forces does this reflect? => D) bargaining
power of suppliers

A company or an industry whose product works well with a firm's product and without which the
product would lose much of its value is considered to be a(n) => A) complementor.

A relationship that illustrates the term complementor is => A) Microsoft and Intel.

According to the text, the strength of each of the six driving forces of industry competition varies
according to the => B) stage of industry evolution.

In a fragmented industry => E) all of the above.

The U.S. major home appliance industry, including the companies of Maytag, Whirlpool,
General Electric, and Electrolux, is an example of an industry => C) that was once fragmented,
but now is consolidated.

An industry dominated by a few large firms, all of which struggle with product differentiation, is
known as => B) consolidated.

In which type of international industry do corporations tailor their products to the specific needs
of consumers in a particular country? => D) multidomestic industry

Which type of international industry manufactures and sells the same products with only minor
adjustments made for individual countries around the world? => B) global industry

Which of the following is an example of a global industry? => C) tires

The two factors that tend to determine whether an industry will be primarily multidomestic or
primarily global are (1) the pressure for coordination within the MNCs operating in that industry
and (2): => A) the pressure for local responsiveness on the part of individual country markets.

When the pressure for coordination is strong and the pressure for local responsiveness is weak
for multinational corporations within a particular industry, the industry will tend to become =>
A) global.

When the pressure for local responsiveness is strong and the pressure for coordination is weak
for multinational corporations in an industry, the industry will tend to become global. => C)
multidomestic.

What is a set of business units or firms that "pursue similar strategies with similar
resources?" => A) strategic group

Which of the following is NOT one of the general strategic types? => A) initiators

Which strategic orientation is demonstrated by companies that have a limited product line and
focuses on improving the efficiency of their existing operations? => E) defenders

A company that operates in at least two different product-market areas in which one product is
stable and the other one is variable, reflects which strategic orientation? => C) analyzers

Companies with fairly broad product lines that focus on product innovations and market
opportunities, reflect which strategic orientation? => D) prospectors

Corporations that lack a consistent strategy-structure-culture relationship reflect which

strategic orientation? => B) reactors

To succeed in a hypercompetitive industry, companies must be willing to => D) cannibalize their

own successful product lines.

A table which summarizes the key success factors within a particular industry is called a(n) =>
E) industry matrix.
Those variables that can affect significantly the overall competitive positions of companies
within any particular industry are known as => D) key success factors.

A formal program of gathering information on a company's competitors is referred to as => B)

competitive intelligence.

Which of the following is true in regards to competitive intelligence? => E) all of the above

The primary activity of competitive intelligence is to => A) monitor competitors.

A study of nearly 500 of the world's largest corporations indicated which of the following to be
the most widely practiced form of forecasting? => E) trend extrapolation

Over ________ of large companies use trend extrapolation for forecasting. => E) 70%

Trend extrapolation is => B) the extension of present trends into the future.

A non-quantitative approach to forecasting that requires simply the presence of people with some
knowledge of the situation to be predicted is called => D) brainstorming.

One ground rule necessary for effective brainstorming is => B) propose ideas without mentally
screening them.

A forecasting technique using quantitative measures that attempt to discover causal or at least
explanatory factors that link two or more time series together is called => B) statistical modeling.

The most widely used forecasting technique used after trend extrapolation is => C) scenario-
writing.

Which one of the following is NOT part of the process of industry scenarios? => C) Generate at
least 15 scenarios.

The technique recommended by the text to organize an analysis of external strategic factors is
called => B) EFAS
In the EFAS Table, the indicator of how well a particular company is responding to current and
expected factors in its external environment is characterized by the => C) total weighted score.