Question 1

Most Americans believe a corporation's top obligation is to its

Accepted Answer

A)   nation.
B)   stockholders.
C)   community.
D)   employees.

Question 2

Externalities are the unintended negative (or in some cases positive) consequences that an economic transaction between two parties can have on some third party.

Accepted Answer

A) True 
 B)False

Question 3

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 4

Milton Friedman argues that

Accepted Answer

A)   corporations today should adopt a broader view of their social responsibilities than they have in the past.
B)   corporate officials have a social responsibility that goes beyond serving the interests of their stockholders.
C)   strict governmental controls are necessary if society is to maximize its overall economic well-being.
D)   a business has no social responsibilities other than to maximize profits.

Question 5

Which of the following is one of the three arguments in favor of narrow corporate social responsibility discussed in this chapter?

Accepted Answer

A)   business-can-handle-it
B)   let-government-do-it
C)   society-lacks-the-expertise
D)   visible-hand

Question 6

According to Kenneth Arrow, trust and confidence are highly overrated in business.

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

Manuel Velasquez claims that the corporate internal decision structure of a corporation shows that a corporation can have both intentions and intentionality.

Accepted Answer

A) True 
 B)False

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

The first corporations

Accepted Answer

A)   were towns, universities, and ecclesiastic orders.
B)   emerged in the 19th century.
C)   were government owned.
D)   were profit-making associations.

Question 11

Briefly explain Milton Friedman's view of social responsibility.

Accepted Answer

Milton Friedman's view of social respons...

Question 12

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 13

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 14

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 15

Briefly sketch the evolution of corporations.

Accepted Answer

The evolution of corporations can be tra...

Question 16

According to law professor Christopher D. Stone, the relationship between corporate management and its shareholders is identical with the relationship between you and an investment advisor.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following do proponents of the broader view of corporate social responsibility believe?

Accepted Answer

A)   Corporations should not internalize their externalities.
B)   Moral responsibility arises from social power.
C)   Businesses have other obligations besides making a profit.
D)   The modern corporation is not a social institution.

Question 18

Adam Smith proposed that in our pursuit of economic interests we are led by

Accepted Answer

A)   our gut instincts.
B)   an invisible hand to promote general good.
C)   the trends of the economy.
D)   the moral compass within each of us.

Question 19

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 20

What is the problem of "vanishing individual responsibility"?

Accepted Answer

The problem of "vanishing individual res...

Exam 5: Corporations

Briefly explain Milton Friedman's view of social responsibility.

Correct AnswerAnswered by ExamLex AIMilton Friedman's view of social respons...View AnswerShow Answer

Manuel Velasquez claims that the corporate internal decision structure of a corporation shows that a corporation can have both intentions and intentionality.

Correct AnswerverifiedShow Answer

Briefly sketch the evolution of corporations.

Correct AnswerAnswered by ExamLex AIThe evolution of corporations can be tra...View AnswerShow Answer

Corporations are limited-liability companies which means that

Correct AnswerverifiedShow Answer

Adam Smith proposed that in our pursuit of economic interests we are led by

Correct AnswerverifiedShow Answer

According to Kenneth Arrow, trust and confidence are highly overrated in business.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

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

Which of the following is one of the three arguments in favor of narrow corporate social responsibility discussed in this chapter?

Correct AnswerverifiedShow Answer

Milton Friedman argues that

Correct AnswerverifiedShow Answer

According to law professor Christopher D. Stone, the relationship between corporate management and its shareholders is identical with the relationship between you and an investment advisor.

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

What is the problem of "vanishing individual responsibility"?

Correct AnswerAnswered by ExamLex AIThe problem of "vanishing individual res...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

Most Americans believe a corporation's top obligation is to its

Correct AnswerverifiedShow Answer

The first corporations

Correct AnswerverifiedShow Answer

Which of the following do proponents of the broader view of corporate social responsibility believe?

Correct AnswerverifiedShow Answer

Externalities are the unintended negative (or in some cases positive) consequences that an economic transaction between two parties can have on some third party.

Correct AnswerverifiedShow Answer

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Milton Friedman's view of social respons...
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The evolution of corporations can be tra...
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The problem of "vanishing individual res...
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