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buseth unit 3

Quiz by Robert Couch

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20 questions
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  • Q1
    All of the following refer to the shareholders of a firm EXCEPT:
    owners
    stockholders
    creditors
    investors
    30s
  • Q2
    Institutional investors are accurately described all of the following statements EXCEPT:
    As of 2022, institutions accounted for about 80% of the volume of trades on the New York Stock Exchange.
    Institutional investors include banks, mutual funds, hedge funds, insurance companies, and pension funds.
    Banks and student loans are examples of institutional investors.
    The number of institutional investors in the United States has increased significanctly since the 1960s.
    30s
  • Q3
    All of the following are true EXCEPT:
    The idea behind pay-for-performance incentives is to shield executives from risks beyond their control.
    It actually becomes a disincentive because the stakes are too high to manage.
    Executive stock options help align managerial incentives with corporate performance.
    Today’s high salaries for executives help companies attract and retain top talent.
    30s
  • Q4
    The best example of a company guided by enlightened self-interest is one that
    follows all government rules and regulations to avoid penalties and fines.
    invests in long-term programs that provide assistance to their stakeholders.
    spends money on short-term projects to benefit market stakeholders.
    puts most of their effort into marketing schemes to attract more business.
    30s
  • Q5
    The social reputation of a firm helps a company's stakeholder relationships by increasing
    profits
    assets
    liabilities
    trust
    30s
  • Q6
    Which of the following correctly completes the sentence: Costs of corporate social responsibility may ultimately be passed on to
    shareholders through higher dividends.
    consumers through higher prices.
    workers through higher wages.
    suppliers through discounts.
    30s
  • Q7
    When a business diverts resources for social purposes, which of the following is LEAST likely to occur:
    lower profitability.
    a decrease in sales.
    an improved reputation among consumers.
    more backlash from social activists.
    30s
  • Q8
    The relevance and importance of stakeholders and their issues is known as
    stakeholder materiality.
    competitive intelligence.
    stakeholder salience.
    organizational capacity.
    30s
  • Q9
    Firms that generally act only when forced to do so, and then in a defensive manner, are
    inactive.
    reactive.
    interactive.
    proactive.
    30s
  • Q10
    An interactive business–stakeholder relationship is one where
    competitive advantage is realized through a constant change of internal representatives.
    companies engage with all of their stakeholders using only electronic communications.
    companies actively engage with stakeholders through mutual respect and trust.
    organizations use role-playing to effectively engage with external stakeholders.
    30s
  • Q11
    Social media can improve stakeholder engagement and relationships in all of the following ways EXCEPT:
    makes stakeholder communications faster and more effective
    offers a mechanism for the public to voice their opinions of the firm and its products via reviews
    provides a forum for the firm to share information with the public via blogs and press releases
    attracts interest through controversial public relation statements
    30s
  • Q12
    Critics of corporate social responsibility argue that public officials, not businesspeople, should solve societal problems because for all of the following reasons EXCEPT:
    the private sector is not mandated to solve public issues.
    only public officials were elected to manage social topics.
    government is better at finding innovative solutions to social problems.
    businesspeople may not have the skills or incentives to solve societal problems.
    30s
  • Q13
    Visionary CEOs see global citizenship as an opportunity to do all of the following EXCEPT:
    help address global challenges.
    generate profits myopically.
    create value for their organization.
    gain a competitive advantage.
    30s
  • Q14
    The mission of the Securities and Exchange Commission (SEC) is to
    protect companies from hostile takeovers.
    ensure that institutional investors do not take control of company management.
    ensure that the federal Treasury receives its share of the revenues from stock trading.
    protect shareholders’ rights by making sure that stock markets are run fairly.
    30s
  • Q15
    Which statement best describes the what proponents of shareholder capitalism believe?
    Striving to maximize shareholder value is the fairest way to ensure people get what they deserve.
    Striving to maximize shareholder value is the most practical way to create the most economical value.
    Striving to maximize shareholder value is effective way to promote equity.
    Striving to maximize shareholder value is the most likely way to generate public goods.
    30s

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