ADM1101 Final Exam Questions with 100% Correct Answers | Verified | Latest Update, Exams of Advanced Education

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ADM1101 Final Exam Questions with

100% Correct Answers | Verified | Latest

Update

Whatiareitheisegmentsiofitheidomesticimacro-environment?i- iCorrectiAnswer-Businessi Governmenti Civilisocietyi BouldingiTriangle Whatiisitheibusinessisegment?i-iCorrectiAnswer- includesialliformsiofi"foriprofit"ibusinessiownershipiiniCanada,iincluding icorporations,ifranchises,ipartnerships,iandisoleiproprietorships.

isortingimechanismsitakeitheiformiofisupplyiandidemandioriquidiproiquo iexchange Whatiisitheigovernmentisegment?i-iCorrectiAnswer- includesiallilevelsiofigovernmentiiniCanada;ifederal,iprovincial,iandimun icipal.i

• isortingimechanisms:icoercioniandiredistribution

Whatiisitheicivilisocietyisegment?i-iCorrectiAnswer- includesiorganizediandiunorganizedisocialinetworks,inon- governmentiorganizations,ivolunteeriorganizations,icharitiesiandiphila nthropiciefforts.i

• isortingimechanism:isolidarity,ireciprocity,icollaboration,ianditrust. WhatiareisomeichangesiiniCanada'sidomesticimacro-environment?i- iCorrectiAnswer-Changesihaveibeenidrivenibyitheidevelopmentsiin:i
• iageingipopulation,i
• idiminishingilabouripoor,

icontinuingiadvancesiinitheienablingieffectiofiinformationiandicommuni cationsitechnologies,

• imulticulturalism,i
• iandiglobalization WhatiareisomeichangesiiniCanada'sidomesticimacro- environmenti(government)?i-iCorrectiAnswer-- igovernmentiisiundericontinuousipressureitoiprovideibetteristewardshi piofitaxpayers'imoneyianditoiactiinitheibestiinterestsiofiCanadiansibutiati theisameitimeigovernmentiactivitiesiareiunderiincreasingipubliciscrutin yiandiitsiinternationaliobligationsiareichangingiasiwell

andimoreidemandsiforiservicesioficivilisociety,iasiissuesifacedibyicommu nitiesiandistakeholders,iareiincreasingi(cross- culturalichallengesiandiagingipopulation). WhatiareisomeichangesiiniCanada'sidomesticimacro- environmenti(business)?i-iCorrectiAnswer- Businessesicaninoilongerirelyitheisupportifromigovernment,itheyimustil earnitoibeigloballyicompetitiveioriceaseitoiexist. Howidoesibusinessiinfluenceigovernment?i-iCorrectiAnswer- businessiappliesipressureitoigovernmentithroughilobbyingiactivitiesiinia niattemptitoiinfluenceipublicipolicy. Howidoesigovernmentiinfluenceibusiness?i-iCorrectiAnswer- theyicaniregulate,isubsidize,itax,iloanimoneyiandiinvestiinicertainiactiviti es,iprocureigoodsiandiservices,ianditakeiownershipiofitheideliveryiofipro ductsiandiservicesitoiinfluenceibusiness Howidoesigovernmentiinfluenceicivilisociety?i-iCorrectiAnswer- Toiinfluenceicivilisociety,igovernmenticanioccurifundingiforicertainiactivi ties,imodifyiitsitaxipolicy,icollaborateitoidevelopialternativeiserviceideli veryimechanisms,ioriworkitoidevelopinationalithird- sectoristrategiesithatiwouldiiniturnibolsteritheigovernment'sipolicyidire ction. Howidoesitheicivilisocietyiinfluenceibusinessiandigovernment?i- iCorrectiAnswer--

iByibeingitheitrustedi"neutralibroker"iinidealingsibetweenibusinessiandi government,icivilisocietyicaniinfluenceibothisegmentsitoimoveiiniaispeci fiedidirectioniinideliveringiprograms,iservices,icontractsiandiotherimatt ers.

iIticanialsoibringipublicicredibilityitoitheiactionsiofibothibusinessiandigov ernment,iandibyibeingicloseritoistakeholders,iserveiasianiimportanticon duitionipubliciopinioniinimattersiofibusinessiactivityiandipublicipolicy. Whatiisiaistakeholder?i-iCorrectiAnswer- Oneithatihasiaistakeiinianienterprise Allistakeholdersicanihaveisomeidegreeiofiinfluenceioribeiinfluencedibyit heicompany,ibusinessioricorp. theimosticommonistakeholders: shareholders,iemployees,isuppliers,iunions,icompetitors,iandigovernm ent.i leastiintuitiveistakeholdersiareionesilikeieveryicitizeniisiaistakeholderitoi government evenilessiisicitizenistakeholdersitoitheicivilisociety,ileastiunderstoodibuti haveitheimostipoweritoiinfluenceigovernmentiandibusiness

Whatiisiaicorporateistakeholder?i-iCorrectiAnswer- Corporateistakeholdericonceptiprovidesitheimostiintuitiveiapproachitoi understandingitheiroleiofitheistakeholder.

iCanibeiclassifiediasidirect,iindirect,iprimary,iandisecondaryiamongiother si- ibutiallistakeholdersiregardlessioficlassificationicanitoisomeidegreeiinflu enceioribeiinfluencedibyitheicompany,ibusiness,ioricorporation. Whatiisiaipluralisticisociety?i-iCorrectiAnswer- Aisocietyiwhereipoweriisidistributed,inoticentralized;iaisocietyithaticons istsiofiaimultitudeiofistakeholdersidirectlyioriindirectlyiinfluencingieachi otherithroughiairangeiofisocialirelationships

• inoisingleisegmentiholdsiexclusiveipower. Whatiisiouristyleiofigovernment?i-iCorrectiAnswer- WeihaveiaimodifiediWestminsteristyleiofigovernmentiiniwhichilegislatio nicanibeiadvancedieitherifederallyioriprovincially.i
• iGovernmentsiinfluenceionitheiCanadianisocio- economyiisisignificantiandiimportantiforimanagersitoiunderstandiiti(wit higeneratingirevenuesifromiformsiofitaxation,ispendingionitransferipay mentsietc)

TheieconomicisystemiiniCanadai-iCorrectiAnswer- isiaiprivateienterpriseisystemiwhereifirmsiareirewardediforieffectivelyia ndiefficientlyimeetingitheiwantsiandineedsioficustomers.

icharacteristicirightsiofiaiprivateienterpriseisystemiinclude:iprivateiprop erty,ifreedomiofichoice,iprofit,iandicompetition. Howicaniweidescribeitoday'siCanadianibusinessienvironment?i- iCorrectiAnswer- asiaiprivateimarketisystemianchorediinitheidoctrinesioficapitalismithatip rovideiforitheiprivateiownershipiofitheifactorsiofiproductioniwithiprofitsi determinedithroughitheilawsiofisupplyiandidemandiiniaigenerallyiunrest rictedimarket. HowiimportantiareismallibusinessesiiniCanada?i-iCorrectiAnswer- 70%iofiCanadiansiareiemployediinismallibusinesses

iofithei1.2imillioniemployeribusinessiestablishments,i97.9%iwereismallib usiness,i1.9%iwereimediumiandionlyi0.2%iwereilargeibusiness. Whatiareithei 4 imainitypesiofibusinessiownership?i-iCorrectiAnswer-- isoleiproprietori

• ipartnerships

• icorporations
• ico-operatives Whatiisiaisoleiproprietorship?i-iCorrectiAnswer--isimplestiform
• iaibusinessiownediandimanagedibyiaisingleiindividual

itheisoleiproprietoriisinotiviewediasilegallyiseparatedifromitheibusiness,i theyiareiviewediasioneientity. Whatiareitheiadvantagesiandidisadvantagesioriaisoleiproprietorship?i- iCorrectiAnswer-Advantages:

• iSimpleitoistartiandiendiaibusiness
• iAnyiproprietaryisecretsiareinotisharediwithiotheriowners
• iNimbleimanagement
• iPrideiofiownership
• iProprietorikeepsialliprofitsiforihim/herself
• iProfitsiarei"personaliincome"ianditaxediatiindividualitaxirates
• iNoigovernmentiregulation Disadvantages:

iUnlimitediliabilityiiniwhichitheiproprietoriisiresponsibleiforiallidebtsiofit heibusiness

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iFinancingioptionsiareilimited,icompareditoimoreicomplexiformsiofibusi nessiownership

• iTheibusinessiskillsiareivestediinioneiindividual
• iOverwhelmingitimeicommitment
• iGrowthiisilimitedibyitheivirtueiofitheisizeiofitheiproprietorship

iTheilifespaniofitheiproprietorshipiisitheisameiasitheilifeispaniofitheiown er. Whatiisiaipartnership?i-iCorrectiAnswer-- iTwoiorimoreipeopleishareiownershipiofiaisingleibusiness

iTheilawidoesinotiseparateitheipartnersifromitheibusiness,itheyiareiview ediasioneientity.i

• iincorporatediunderiprovincialilaw Whatiareitheitypesiofipartnership?i-iCorrectiAnswer- Generalipartnership:i

iAllipartnersimanageitheibusinessiandiareijointlyiresponsibleiforipartner shipiliabilities

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iAlsoiareipersonallyiliableiforitheiconsequencesiofitheiactionsiofitheiothe ripartner TheiLimitediPartnership

iSomeimembersiareigeneralipartnersi(atileastione)iwhoicontroliandiman ageitheibusinessiwhileiothersiareilimitedi- itypicallyitoitheiextentiofitheiriinvestmentiinitheipartnership

• iLimitedipartnersitakeinoipartiinicontroliorimanagement
• iTypicallyiusedibyipubliciaccountants,ilawyersiandiphysicians
• iThereiarei 4 itypesiwithinilimitedipartners oiSilentiPartnersi- iknownitoipublic,inotiactiveimanagementiroleiinitheibusiness oiSecretiPartnersi- iunknownitoipublic,ibutidoitakeiactiveiroleiinimanagement oiNominaliPartnersi- ilenditheirinameiforipublicirelationsipurposesibutiaren'tiinvolvediinitheio perations oiDormantiPartnersi- iunknownitoipubliciandinotiactiveiinimanagementiofitheibusiness Whatiareitheiadvantagesiandidisadvantagesiofiaipartnership?i- iCorrectiAnswer-Advantages:i

• iAipartnershipiisirelativelyieasyitoiorganizei- ieasierithaniaicorporationibutisomewhatimoreicomplicatedithaniaisoleip roprietorship

iCompareditoitheisoleiproprietorship,imoreipartnersiequalimoreiinvesto rs;ithereforeimoreicapitaliandimoreiaccessitoicredit

iKnowledgeiandiskillsiandimanagementideriveifromimoreithanioneipers on

• iCombinediknowledgeiandiskills

iDecisionimakingiisimoreinimbleithanitheicorporationiform,ibutinotiasini mbleiasitheisoleiproprietorship Disadvantages:i

iGeneralipartnersiareijointlyiandiseverallyiliableiforiallidebtsiofitheipartn ershipiandiallibusinessiactivitiesiofialliotheripartners

iDisputesiamongipartnersiareidifficultitoiresolveisinceieachipartneriisiani owneriofitheicompany.

• iProfitsiareidividediamongipartnersi(compareditoiaisoleiproprietorship) Whatiisiaicorporation?i-iCorrectiAnswer-- iaibusinessithatiisilegallyiindependentifromiitsiowners,ibutiactsiasiinvidu aliwhoicanienteriagreements,ibeitaxed,isuediandisue.

• iownershipicomesiinitheiformiofishareholder

itypicallyihaveiaiboardiofidirectorsitoioverseeitheigovernanceiofitheicorp orationianditoihireiandisuperviseiaibusinessi Theyicanibeiprivateioripublic:i

• iPrivateiCorporationsi- icanibeiformedibyioneiorimoreipersonsibuticannotisellisharesiorisecuritie sitoitheigeneralipublic,igenerallyi 50 iorilessishareholders
• iPubliciCorporationsi- ioneithatisellsiownershipisharesitoitheipublicithroughiaipublicistockiexch ange Whatiareitheiadvantagesiandidisadvantagesiofiaicorporation?i- iCorrectiAnswer-Advantages:

iTheisaleiofisharesitoiainumberiofiinvestorsimeansitheicorporationihasim oreimoneyiforibusinessioperationsiandiinvestmenticompareditoitheisole iproprietorshipiandipartnership.

• iShareholdersihaveilimitediliability
• iSeparationiofiownershipifromimanagementi- iboardiofidirectorsihireitheiseniorimanagementiteamitoirunitheicorporat ion;iseniorimanagersiareitypicallyinotiownersialthoughiifitheyiparticipat eiinishareibonusesiiticouldibeiargueditheyiareiactuallyiowners,ialthoughi

theiamountiofitheiriownershipistakeiwouldibeiminusculeiiniwidely,iheld, ilargeicorporations.

iChangingiownershipiiniaicorporationiisiaisimpleimatteriofisellingisharesi toisomeoneielse;itherefore,iwhenicompareditoiaipartnership,iaichangeio ficorporateiownershipiisicomparativelyisimple.

• iIfiaishareholderidies,itheicorporationilivesion. Disadvantages:

iSetiupicostsiareisignificant,icompareditoiaisoleiproprietorshipioripartner ship

iShareholdersi(ownersiofitheicorporation)ibringsidividendipaiditoithemi byitheicorporationiintoiincomeiandipayitaxionitheseicorporateidividends ;itheicorporationialsoipaysitaxesioniearning.iThisiisithei"double- taxation"idisadvantageireferredito.

iIsiitimoreidifficultitoiterminateiaicorporationithaniaisoleiproprietorshipi oripartnership. Whatiisiaicooperative?i-iCorrectiAnswer-- iAilegallyiincorporatedicorporationithatiisiownedibyianiassociationiofiper sonsiseekingitoisatisfyitheicommonineedsisuchiasiaccessiorisaleiofitheirip roductsioriservicesioriemployment

• iSeveralitypes: oiFinanciali(creditiservices) oiRetaili(food,ihardware) oiServicei(daycare,ifuneral) oiProduceri(farmisupply,ifisheries) oiWorkeri(construction,iforestry) oiMulti-stakeholdersi(differenticategoriesiofimembers)
• iMustiincorporateiunderiaispecificico- operativeiActiatitheiprovincial,iterritorialiorifederalilevel,ialthough. Whatiareitheiadvantagesiandidisadvantagesiofiaicooperative?i- iCorrectiAnswer-Advantages:
• iOwnediandicontrolledibyimembers
• iMembers'iliabilityiisilimiteditoitheiownershipishare
• iAnyiprofitsiareidistributeditoimembersionly Disadvantages
• iPotentialiconflictibetweenimembers
• iMoreiextensiveirecordikeepingi(compareditoitheiothers)

iTheimanyimembersicaniresultiinilongeridecisionimakingiprocessi(compa reditoitheiothers)

Whatiisiaifranchise?i-iCorrectiAnswer- Aispecializediformiofibusinessiownership

iCanibeidefinediasiaibusinessiestablishediorioperatediunderianiauthoriza tionitoisellioridistributeiaicompany'sigoodsioriservicesiiniaiparticulariarea Whatiareitheiadvantagesiandidisadvantagesiofiaifranchise?i- iCorrectiAnswer-Advantages:

iAiprovenioperatingimethodologyiwithiaiwidelyirecognizediproduct,iserv iceioriname

• iExtensiveifranchiseeitrainingiandisupport

iSuppliesiareisourcedifromianiestablishedisupplyichainiwithireliableisupp liersiwhoimeetiqualityirequirements Disadvantages:

• iEstablishingiaifranchiseicanirequireisignificantiinvestment

iTheisameicommonitrainingiandisupporticanialsoigreatlyirestrictifreedo miinioperations

• iReportingirequirementsitoitheifranchisoricanibeiextensive Whatiisigovernance?i-iCorrectiAnswer--iManyidefinitionsioniwhatiitiis

• iSomeiofithem: oiTheiframeworkiofirules,irelationships,isystemsiandiprocessesiwithinia ndibyiwhichiauthorityiisiexercisediandicontrolled oiGovernanceideterminesiwhoihasipower,iwhoimakesidecisions,ihowiot heriplayersimakeitheirivoiceiheardiandihowiaccountiisirendered.

iTheicommonithemeiisithatiessentiallyigovernanceiisiconcernediwithiho wianiorganizationisteersiitself Whatiisicorporateigovernance?i-iCorrectiAnswer-- iTheimosticommonitreatmentiofigovernance

iAisetioficontractsiandirelationshipsibetweenitheicompany,iitsidirectors,i itsiofficersi(topimanagement)iandiitsistakeholdersithatiensuresiaccount ability,ienhancesitheireliabilityiandiqualityiofipublicifinancialiinformatio n,ienhancesitheiintegrityiandiefficiencyiofitheicapitalimarket,iandiimpro vesiinvestoriconfidence

iDefinitionimovesibeyondijustitheiboardiofidirectors,ishareholdersiandi managers.

• iHowianiorganizationisteersiitself. oiKeyithemes:istakeholders,ivalues,irules,iprocesses,iimpact,iaccountabi lityiandiresponsibility
• iThreeikeyistakeholdersiinvolved:ishareholders,idirectors,iandiofficers

Whatiareishareholders?i-iCorrectiAnswer-- iTheiownersiofiaicompanyiandiasisuchiholdiaisignificantistakeiinicorporat eigovernance.i

imainigoaliisireceivingiaireturnionitheiriinfluenceiinvestmentiinitheicorpo ration.i

iallicorporationsiareirequireditoihaveioniclassiofisharesicalledicommonis hares oiCommonisharesihavei 3 ibasicirights

• iTheirightitoiattendiaishareholders'imeetingiandivote
• iTheirightitoishareiiniresidualiassetsiofitheicorporation,iatidissolution
• iTheirightitoireceiveianyideclaredidividend Whatiisiaiboardiofidirectors?i-iCorrectiAnswer-- iGroupiofiindividualsiwhoirepresentistockholdersiandioverseeitheibusin ess

iTheyiareiresponsibleiforihiringitheiseniorimanagementiteamiwhoiareire sponsibleiforitheiday-to-dayioperations

• iTheyihaveimanyiotherirolesithatiareinotitheiday-to-dayioperations
• iTwoiimportantiduties: ioiFiduciaryiDuty:itheidutyitoiactihonestlyiandiinigoodifaithiwithiaiviewitoi theibestiinterestsiofitheicorporation,itoiexerciseipowersiproperlyiforithei purposeiforiwhichitheyiwereiconferredianditoiavoidiconflictiofiinterestia nditoipreventiimproperipayments

ioiDutyioficare:itheidutyitoiactiprudentlyiandioniaireasonablyiinformedib asis

• iTheyiareiexposeditoisubstantialiliabilitiesiforianyibreachesiofidutyi- iandicanibeiheldiliableiforiobligationsiarisingifromiimproperifinancialidea lings Whatiareiofficers?i-iCorrectiAnswer- Directorsimayidelegateitheiridutiesitoiofficersiofitheicorporationiwhoiar eitheisenioriemployeesioverseeingitheiday-to- dayioperationsiofitheicorporation. Whatiisigoodigovernance?i-iCorrectiAnswer-- iOneiofitheicharacteristicsiofitheicorporateiformiofibusinessiownershipit hatihasicontributeditoigovernanceichallengesiisitheiseparationiofiowner shipifromicontrol.i
• iShareholdersiareitheide- factoiownersiofitheicorporationianditheivotesiattacheditoitheicommonis haresipermitishareholdersitoiexerciseicontrolioveritheicorporation oiHowever,iinilargeicorporations,iownershipimayibecomeisoidispersed,i andinoioneigroupiofishareholdersihasivotingicontroliofitheicorporation i- iOnlyiviableicontroliisiwhenishareholdersielectiaiboardiofidirectorsiwhoi watchioverimanagementitoiprotectitheiinterestsiofitheishareholders i- iThus,icombineitheidispersioniofishareiownershipiwithiaidecentralizedib oardiofidirectorsiwhoionlyimeeti 1 - 3 iaiyear,itheiauthority,ipoweriandicontroliwillirestiwithitheimanagers.i-

iwhoiwillihaveigoalsithatireflectiself- interestiratherithanitheiinterestiofitheishareholders

• iShowsihowicomplexicorporateigovernanceiisi^ Whatiareitheiupdatediprinciplesioficorporateigovernance?i- iCorrectiAnswer-- iEnsuringitheibasisiforianieffectiveicorporateigovernanceiframework

iTheirightsiandiequitableitreatmentiofishareholdersiandikeyiownershipif unctions

• iInstitutionaliinvestors,istockimarketsiandiotheriintermediaries
• iTheiroleiofistakeholdersiinicorporateigovernance
• iDisclosureianditransparency
• iTheiresponsibilitiesiofitheiboard Whatiisicorporateisocialiresponsibility?i-iCorrectiAnswer- Aibusiness'siconcerniforisociety'siwelfare.i Pro:
• iBusinessimustisatisfyisociety'sineeds
• iCSRipreventsipublicicriticismiandigovernmentiregulation
• iBusinessiandisocietyiareiinterdependent
• iCSRiisigoodiforitheibottomiline
• iInvestorsiandiconsumersisupportiCSR

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iAddressingisocialiproblemsicanibecomeifinancialiopportunitiesi(ex:ipoll utioniabatement) Con:

• iProfitimaximizationiisitheiprimaryipurposeiofibusiness
• iBusinessiisiresponsibleitoishareholder
• iSocialipolicyiisiroleiofitheigovernment
• iBusinessilacksitrainingiinisocialiissues
• iCSRiwouldigiveitooimuchipoweritoibusiness Whatiareithei 3 ilevelsioficorporateisocialiresponsibilityi-iCorrectiAnswer- 1.iEthical:iavoidiharmitoisociety,iprofitishouldn'tibeimaximizediwithoutir egarditoitheimeansiused 2.iAltruistic:icompaniesishouldigiveibackitoisocietyiregardlessiofiwhethe riaifirmiwillirecognizeianyigainifromidoingiso 3.iStrategic:iinvestsiinisociallyiresponsibleiactivitiesioriventuresithatiarei goodiforibothitheicompanyiandisociety. Whatiisitheicorporateisocialiresponsibilityitheory?i(amoraliview)i- iCorrectiAnswer-Theiamoraliview:
• itraditionaliviewi

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istatesithatianiactivityisuchiasiprofitimaximizationilacksiaimoraliquantity .

• iitiisineitherimoralinoriimmoral
• itheicorporationiisiaiprofit- makingientityilegitimizedibyitheiprevailingilawsiofisocietyiandithereforei itiisinotiaboutibeingisociallyiresponsibleiorinot. Whatiisitheicorporateisocialiresponsibilityitheory?i(personaliview)i- iCorrectiAnswer-theipersonaliview:i

iProposesithaticorporationsiareilikeipeopleiandicanithereforeibeiheldiacc ountableiforitheiriactions

• iCorporationsiareieitherimoralipersonsiorimoraliagents oiMoralipersons:icanibeiblamediinitheisameiwayiaipersonicanibe oiMoraliagents:iit'siexemptifromimoralipunishments Whatiisitheicorporateisocialiresponsibilityitheory?i(socialiview)i- iCorrectiAnswer-Theisocialiview:i

iholdsithaticorporationsiareisocialiinstitutionsiwithisocialiresponsibilitie s

isocialiinstitutionibecauseiitiprovidesigoodsiandiservicesidemandedibyis ocietyiandithus,iimplicitlyisanctionsitheicorporationitoioperateiinithatifo rm.

Whatiisitheicorporateisocialiresponsibilityitheory?i(Carroll'siview)i- iCorrectiAnswer- AccordingitoiCarroll'siviewiofiCSRirequiresithatiiniorderitoibeisociallyires ponsible,icorporationsishouldistriveitoibeiprofitable,inotibreakianyilaws, iproactivelyiembraceiemergingivaluesiandinormsithatisocietyiexpects,ia ndiparticipateiiniactivitiesioriprogramsitoipromoteihumaniwelfare. Whatiareicontemporaryisocialiresponsibilityiconcepts?i- iCorrectiAnswer- IniadditionitoitheiconceptiofiCSR,ithereiareiainumberiofirelatedicontemp oraryiconcepts:icorporateisustainability,ireputationalimanagement,isoc ialiimpactimanagement,ianditripleibottomiline. Whatiisicorporateisustainability?i-iCorrectiAnswer- Corporateisustainabilityioccursiwhenisocial,ienvironmental,iandiecono miciactivitiesiareiconsiderediinitheicontextiofitheiriimpactionistakeholde rs. Whatiareitheifiveilevelsiofisustainability?i-iCorrectiAnswer- oiCompliance-driven

• iMeetsirequirementsiofitheilawi&isupportsicharityitoiaiminimalilevel
• iMinimalist oiProfit-driven

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iInvestsiinisocial,iethical,iandienvironmentaliareasitoionlyiimproveicorpo rationsibottomiline

• iTactical oiCaring
• iWhereiinitiativesiexceediminimalilegalirequirements
• iAccommodating oiSynergistic
• iWheniwell- balancediandirealisticisolutionsiareiderivedithatiresultiinigainsiforiallista keholders
• iCollaborative oiHolistic

iReflectsifulliintegratedicorporateisustainabilityiintoieveryicorporateiact ivity

• iVisionary Whatiisiaireputationalimanagement?i-iCorrectiAnswer- Theimanagementiofiaicompany'sireputationiinvolvesianyifocusediefforti toiimproveitheicompanyinameiinitheieyesiofiitsikeyistakeholders.i Aicompanyithatiisiperceiveditoibeisociallyiresponsibleicanienhanceiitsire putationiandiholdersiitsiabilityitoiweatheritheistormiwheniissuesioccurit hatidetractsifromiitsipositiveireputation.

Whatiisiaisocialiimpactimanagement?i-iCorrectiAnswer-- iemphasizesithatisocietyiandibusinessicannotiexistiwithoutieachiotheri

ibothimustirecognizeithatiwhileibusinessiinfluencesisociety,isocietyialsoii nfluencesibusiness Whatiisitheitripleibottomiline?i-iCorrectiAnswer-- ithisiapproachitoiCSRiadvocatesithatiperformanceishouldibeievaluatedin otionlyibyiaicorporation'sieconomicisuccess,ibutialsoibyitheivalueiiticreat esi(oridestroys)ienvironmentallyiandiethically.i

• igoaliisicorporateisustainability

ialthoughipeopleiargueithatiitiisn'tiaddingivalueitoiCSRiiticaniactuallyiassi sticorporationsiiniavoidingiethicaliandienvironmentaliresponsibilities. Whatiisicommunityiinvestmentiinirelationitoibusinesses?i- iCorrectiAnswer-- iCommunityiinvestmentiisigenerallyiconcernediwithistrategiciphilanthro picieffortsiinicommunitiesiaffectedibyitheioperationiofitheiorganizations .

iInvolvesigivingibackitoitheicommunityiandigivingilocalipeopleiaccessito:i equipmenti(computers),ihumaniresourcesi(time,iskills,iknowledge),ibus inessicapacityi(marketing)

• iInvolvesimoreithanidonatingimoneyiandiotheriphilanthropiciactivities

iIsiwidelyiregardediasiaisoundiinvestmentithatiproducesimeasurableiret urnsiforitheiorganization Whaticaniweisayiaboutitheinaturalienvironmentiandibusiness?i- iCorrectiAnswer-- iMustibeiconsiderediasiwell,itheieconomicifootprintileftiinitheiproductio niofieveryigoodiweiconsume

iEnvironmentalideteriorationidueitoidecliningiSeaiice,imeltingiglaciers,ie xtremeitemperatureimovementsiandivacillationsiiniprecipitationiasipro of

• iEnvironmentaliissuesipresentiseriousirisksitoibusinesses
• iKeyidebateihasialwaysibeeniproductivityivsipollution Whatiareitwoiapproachesiinitheinaturalienvironmentiandibusiness?i- iCorrectiAnswer-Standardienvironmentalism:i

ioccursiwhenigovernmentiregulationioriinterventioniisirequireditoireme dyitheimarket'sifailureitoiprovideisufficientienvironmentaliprotection.i

• i"governmentiinterventioniisineededitoiprotectitheienvironment" Marketienvironmentalism:i

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ioccursiwhenieconomiciincentivesicreatedibyitheimarketiareimoreieffect iveiatiprotectingitheienvironmentithanigovernmentiintervention

i"there'sienoughiprofitiincentivesitoiprotectienvironmentiwithoutigover nment" Theigovernmentisegmenti-iCorrectiAnswer-- iWillidescribeiissuesifacediinitheigovernmentisegment

• iAniunderstandingiforitheigovernmentiisicriticaliforibusinessisuccess

iWilliprovideiaibriefioverviewiofitheigovernmentisegment:iwhatiitiis,iwh yiitiisitheiwayiitiis,iwhatisomeiofitheiissuesiareiandiwhyitheiknowledgeiisii mportant WhatiareitheicommonigroundibetweeniGovernmentiandiBusiness?i- iCorrectiAnswer-Areasioficommoniground:

iBothibusinessiandigovernmentistriveitoimaximizeitheiwealthiofitheirista keholders

• iBothistriveitoiimplementitheibestipracticesiiniwhatitheyido

iBothiseekiforitheibestiandibrightestitoipopulateitheiriranksiasibothireco gnizeithatitheirisuccessiisirootediinitheiripeople