Question 1

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.E) All of the above
F) B) and C)

Question 2

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.E) All of the above
F) B) and C)

Question 3

Kenneth Arrow argues that

Accepted Answer

A)  settled economic life requires purely selfish behavior.
B)  with ethical codes,there's no need for taxes,laws,or regulations as a way of controlling corporate behavior.
C)  ethical codes can contribute to economic efficiency.
D)  to be viable,ethical codes need not be widely accepted or part of corporate culture.E) A) and C)
F) C) and D)

Question 4

Should corporation be considered moral agents? Why or why not? Make use of specific arguments from the text to support your position being sure to address at least one opposing argument.

Accepted Answer

Corporations should not be considered mo...

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

Briefly sketch the evolution of corporations.

Accepted Answer

The evolution of corporations can be tra...

Question 7

Externalities are

Accepted Answer

A)  always positive,never negative.
B)  a blessing in disguise in inflationary times.
C)  an inevitable by-product of social responsibility.
D)  unintended side-effects.E) A) and B)
F) A) and C)

Question 8

Milton Friedman's perspective is that the only responsibility of a business is to

Accepted Answer

A)  provide social benefit for the messes.
B)  give jobs to the hard workers.
C)  pay taxes to keep the government operating.
D)  make money for its owners.E) None of the above
F) C) and D)

Question 9

A common point of contention about corporations is

Accepted Answer

A)  corporate punishment is no different from individual punishment.
B)  modern corporations no longer utilize a CID structure.
C)  philosophers and business theorists disagree whether corporations are moral agents.
D)  if corporations are moral agents,then this relieves individual human beings of any moral responsibility.E) A) and D)
F) A) and C)

Question 10

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 11

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 12

According to Keith Davis,in addition to considering potential profitability,a business must weigh the long-range social costs of its activities as well.Only if the overall benefit to society is positive should business act.

Accepted Answer

A) True 
 B)False

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.E) A) and B)
F) A) and C)

Question 14

Corporate internal decision (CID)structures amount to established procedures for accomplishing specific goals.

Accepted Answer

A) True 
 B)False

Question 15

The case of First National Bank of Boston v.Bellotti sharpened the legal distinction between corporations and individuals.

Accepted Answer

A) True 
 B)False

Question 16

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 17

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 18

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

Accepted Answer

A) True 
 B)False

Question 19

One of the three important "limits to what the law can do" discussed by Christopher Stone is

Accepted Answer

A)  laws are passed before there is any real problem to worry about.
B)  consumers don't want further legal regulation.
C)  designing effective regulations is difficult.
D)  regulators are often "bought off" by corporations.E) B) and D)
F) C) and D)

Question 20

The idea that corporations will impose their values on us supports one of the arguments for the narrow view of corporate social responsibility.

Accepted Answer

A) True 
 B)False

Exam 5: Corporations

Milton Friedman argues that

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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.

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A common point of contention about corporations is

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The case of First National Bank of Boston v.Bellotti sharpened the legal distinction between corporations and individuals.

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Externalities are

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

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Kenneth Arrow argues that

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The idea that corporations will impose their values on us supports one of the arguments for the narrow view of corporate social responsibility.

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According to Keith Davis,in addition to considering potential profitability,a business must weigh the long-range social costs of its activities as well.Only if the overall benefit to society is positive should business act.

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Should corporation be considered moral agents? Why or why not? Make use of specific arguments from the text to support your position being sure to address at least one opposing argument.

Correct AnswerAnswered by ExamLex AICorporations should not be considered mo...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.

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Corporate internal decision (CID)structures amount to established procedures for accomplishing specific goals.

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

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

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Milton Friedman's perspective is that the only responsibility of a business is to

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Briefly sketch the evolution of corporations.

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

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

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

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

One of the three important "limits to what the law can do" discussed by Christopher Stone is

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Corporations should not be considered mo...
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The evolution of corporations can be tra...
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