Question 1

Corporations are limited-liability companies which means that

Accepted Answer

A)  corporate shareholders are liable for corporate debts only up to the extent of their investments.
B)  corporations must be "publicly held" and thus traded on the stock market.
C)  corporations are always for-profit but that profit can be limited but often is not in reality.
D)  corporate shareholders are immediately entitled to any profits or the company is liable.

Question 2

What are the potential ethical violations that Nestles faces in selling infant formula in an overseas market?

Accepted Answer

Nestlé, the world's largest food and bev...

Question 3

Externalities are the intended negative (or in some cases positive)consequences that two parties purposefully impose on an external third party.

Accepted Answer

A) True 
 B)False

Question 4

Those with a broader view concerning business obligations believe that with power comes

Accepted Answer

A)  more power.
B)  more money.
C)  too many limits .
D)  social responsibility.

Question 5

Most business observers agree with Berle and Means that, because stock ownership in large corporations is so dispersed, actual control of the corporation has passed to management.

Accepted Answer

A) True 
 B)False

Question 6

According to John Kenneth Galbraith, business's social role is purely economic and corporations should not be considered moral agents.

Accepted Answer

A) True 
 B)False

Question 7

Melvin Anshen suggests that there is an relationship between business and society which he termed as

Accepted Answer

A)  "share the wealth".
B)  "the rich get richer and the poor get poorer".
C)  "social contract".
D)  "one for all and all for one".

Question 8

Corporations differ from partnerships and other forms of business association in two ways. One of these is that

Accepted Answer

A)  they are regulated by the Federal Trade Commission.
B)  they are formed simply by an agreement entered into among their members.
C)  they must be publicly registered or in some way officially acknowledged by the law.
D)  their shareholders are entitled to their share of the company's profits as soon as they are ascertained or determined.

Question 9

Does a company like Levi Strauss have an obligation to keep an plant open in the United States if it can be more profitable going to a foreign country? Share your reasoning. 
If you were the owner of a company, would your perspective be any different?

Accepted Answer

The answer of Does a company like Levi Strauss have...

Question 10

Kenneth Arrow discussed two important situations in which profit maximization can be socially inefficient. One of these occurs when

Accepted Answer

A)  there is an imbalance of knowledge between buyer and seller.
B)  business would be an "inept custodian" of public values.
C)  firms are unwilling or simply refuse to maximize profits.
D)  corporate culture promotes dysfunctional social relations.

Question 11

Is Levi Strauss really hurting the people of Costa Rica by opening the operation there?  List the pros and cons.

Accepted Answer

The question of whether Levi Strauss is ...

Question 12

The "rules of the game" for corporate work are intended to

Accepted Answer

A)  let the games begin.
B)  promote open and free competition.
C)  destroy the competition.
D)  make business fun.

Question 13

In Citizens United v. Federal Election Commission , the U.S. Supreme Court ruling included

Accepted Answer

A)  support for corporations' First Amendment right to participate in the political process
B)  prohibiting business corporations from spending corporate funds to publicize political views that do not materially affect their business.
C)  that banking procedures are to be regulated by the Securities and Exchange Commission.
D)  that states should be permitted to distinguish between the rights of individuals and the rights of corporations.

Question 14

Which of the following contributed to the more relaxed incorporation procedures of modern times?

Accepted Answer

A)  The idea that incorporation is a by-product of the people's right to associate, not a gift from the state.
B)  The move from mercantilist thinking to a belief in Benjamin Franklin's invisible hand.
C)  The idea that incorporation is a gift from the state.
D)  The thought that laissez-faire is a losing proposition..

Question 15

The invisible-hand argument against broadening corporate responsibility says that business's appetite for profit should be controlled by the hand of the government.

Accepted Answer

A) True 
 B)False

Question 16

According to Milton Friedman, business has no social responsibilities other than to maximize profits.

Accepted Answer

A) True 
 B)False

Question 17

What is a corporation (or limited-liability company)and how does it differ from partnerships and other forms of business association? What are the different kinds of corporations?

Accepted Answer

A corporation, also known as a limited-l...

Question 18

According to Melvin Anshen, the case for a broad view of corporate responsibility can be defended on the basis of there always being a kind of social contract existing between business and society.

Accepted Answer

A) True 
 B)False

Question 19

Recent studies have shown that neither corporate moral codes nor corporate culture affect whether individuals inside the corporation behave morally or immorally.

Accepted Answer

A) True 
 B)False

Question 20

What society finds to be useful and desirable is always brings profitability to companies.

Accepted Answer

A) True 
 B)False

Exam 5: Corporations

Does a company like Levi Strauss have an obligation to keep an plant open in the United States if it can be more profitable going to a foreign country? Share your reasoning. If you were the owner of a company, would your perspective be any different?

Correct AnswerverifiedShow Answer

What is a corporation (or limited-liability company)and how does it differ from partnerships and other forms of business association? What are the different kinds of corporations?

Correct AnswerAnswered by ExamLex AIA corporation, also known as a limited-l...View AnswerShow Answer

Corporations are limited-liability companies which means that

Correct AnswerverifiedShow Answer

What society finds to be useful and desirable is always brings profitability to companies.

Correct AnswerverifiedShow Answer

Those with a broader view concerning business obligations believe that with power comes

Correct AnswerverifiedShow Answer

Recent studies have shown that neither corporate moral codes nor corporate culture affect whether individuals inside the corporation behave morally or immorally.

Correct AnswerverifiedShow Answer

The "rules of the game" for corporate work are intended to

Correct AnswerverifiedShow Answer

Which of the following contributed to the more relaxed incorporation procedures of modern times?

Correct AnswerverifiedShow Answer

According to Melvin Anshen, the case for a broad view of corporate responsibility can be defended on the basis of there always being a kind of social contract existing between business and society.

Correct AnswerverifiedShow Answer

Is Levi Strauss really hurting the people of Costa Rica by opening the operation there? List the pros and cons.

Correct AnswerAnswered by ExamLex AIThe question of whether Levi Strauss is ...View AnswerShow Answer

What are the potential ethical violations that Nestles faces in selling infant formula in an overseas market?

Correct AnswerAnswered by ExamLex AINestlé, the world's largest food and bev...View AnswerShow Answer

In Citizens United v. Federal Election Commission , the U.S. Supreme Court ruling included

Correct AnswerverifiedShow Answer

Externalities are the intended negative (or in some cases positive)consequences that two parties purposefully impose on an external third party.

Correct AnswerverifiedShow Answer

Corporations differ from partnerships and other forms of business association in two ways. One of these is that

Correct AnswerverifiedShow Answer

According to John Kenneth Galbraith, business's social role is purely economic and corporations should not be considered moral agents.

Correct AnswerverifiedShow Answer

Kenneth Arrow discussed two important situations in which profit maximization can be socially inefficient. One of these occurs when

Correct AnswerverifiedShow Answer

The invisible-hand argument against broadening corporate responsibility says that business's appetite for profit should be controlled by the hand of the government.

Correct AnswerverifiedShow Answer

Melvin Anshen suggests that there is an relationship between business and society which he termed as

Correct AnswerverifiedShow Answer

According to Milton Friedman, business has no social responsibilities other than to maximize profits.

Correct AnswerverifiedShow Answer

Most business observers agree with Berle and Means that, because stock ownership in large corporations is so dispersed, actual control of the corporation has passed to management.

Correct AnswerverifiedShow Answer

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A corporation, also known as a limited-l...
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Answered by ExamLex AI
The question of whether Levi Strauss is ...
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Answered by ExamLex AI
Nestlé, the world's largest food and bev...
View Answer

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