BUS 404 Midterm 1 | Actual Exam Questions | 100% Correct Answers | Verified 2024 Version, Exams of Business Statistics

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BUS 404 Midterm 1 | Actual Exam Questions |

100% Correct Answers | Verified 2024 Version

Which of the following statement's is true of lobbying in the United States? - ✔✔D: It is an essential ingredient in big business strategy Which of the following is an argument put forth by the liberal wing of the Supreme Court in the Citizens United case? - ✔✔B: Limiting corporate campaign contributions would violate corporate free speech rights The 501(c) 4 groups are particularly attractive because: - ✔✔A: Contributors' names need not be disclosed Free markets are more efficient decision makers than government rules. Which of the following is a result of the efficient decisions made by free markets? - ✔✔B: Technology is shrinking the globe Which of the following statements is true of large American corporations? - ✔✔B: The colossal size of corporations permits continuing abuse of the American public According to critics, which of the following is the impact of an economic structure that is concentrated? - ✔✔A: Companies and industries are no longer fully responsive to market commands Which of the following statements is true about advertising in schools? - ✔✔A: It is likely to discourage critical thinking Which of the following best describes the historical view of business responsibilities till the first half of the twentieth century? - ✔✔a: Businesses had to assume the affirmative... b: Businesses were expected to give close... C: The duty of businesses was the production and distribution of the best products and services at the lowest possible prices d: The primary duty of businesses was operation...

According to the free market view, which of the following is considered the best measure of social responsibility? - ✔✔A: Profit maximization b: Long-term company interest c: Triple bottom line / sustainability d: Social and environmental performance Which of the following falls under the "desired" category of Carroll's social responsibility pyramid? - ✔✔A: Philanthropic responsibilities b: Economic responsibilities c: Legal responsibilities d: Ethical responsibilities Which of the following is a view professed by Nobel prize-winning economist Milton Friedman? - ✔✔a: Socially responsible behavior b: A strong bottom line, in many cases... C: Any dilution of the profit-maximizing mode - such as charitable contributions - is a misuse of the stockholders' resources d: In the environmental domain Which of the following statements is true of shared value advocates? - ✔✔a: They believe that an entrepreneurial... B: They expect businesses to recognize that their goal must be creating shared value rather than profit per se c: They believe that nonprofit... d: They expect businesses to docus on maximization... Which of the following falls under the "expected" category of Carroll's social responsibility pyramid? - ✔✔a: Philanthropic b: Economic c: Legal D: Ethical

Which of the following statements is true of Carroll's social responsibility pyramid? - ✔✔a: A company's primary responsibility involves engagement... b: A firm's economic responsibilities should be limited to breaking... C: A company's social responsibility begins with making a profit lawfully d: A socially responsible firm would focus... An organizations that contributes resources to the community and strives to improve the quality of life for the community is most likely fulfilling the discretionary _____ of Caroll's social responsibility pyramid.

• ✔✔a: ethical b: legal C: Philanthropic d: economic From a profit maximization point of view, the only responsible and moral course of behavior is to: - ✔✔a: Create shared value b: Use a portion of profits for social benefits C: Reap the highest return possible d: Maximize the interests of all stakeholders... A firm that adopts the triple bottom-line approach: - ✔✔a: Does not follow market principles in its business... b: Believes there is only one social responsibility... c: focuses on the legal and economic responsibilities... D: Considers its social and encironmental responsibilities as important as its financial responsibilities Which of the following best defines the stakeholders of a corporation? - ✔✔a: All those who stand to gain from the corporation's success b: All those who have invested financially... C: All the groups that may significantly affect the corporation's performance or be affected by it d: All those whose livelihood depends...

Which of the following statements is true of a company that adopts the stakeholder approach? - ✔✔a: For a company adopting the stakeholder approach, shareholders... B: For a company adopting the stakeholder approach, profit depends on the interplay between the corporation, government, and society c: For a company adopting the stakeholder approach, profit maximization and... d: For a company adopting the stakeholder approach, the only concern is to... Which of the following is the first global standard which measures companies' social and environmental records? - ✔✔a: The North American Free Trade Agreement B: The Social Accountability 8000 c: The International Organization of Standardization 9000 d: The Environmental Auditing Standards A company that adopts the shareholder approach to business would be most likely to make ________ its top priority - ✔✔a: Social responsibility b: sustainability c: Employee welfare D: Welfare The legal doctrine that makes the employer liable for an employee's acts is __________. - ✔✔A: respondeat superior b: res ipsa loquitur c: Piercing the corporate veil d: caveat emptor If a delivery truck driver negligently hits a child in the street, the company for which the driver works will be liable for the injuries under the legal doctrine of ________. - ✔✔a: caveat emptor B: respondeat superior c: piercing the corporate veil d: res ipsa loquitur

Carey, the owner of a corporation, uses the business checking account to pay his personal bills. He also makes business deals knowing the business cannot pay the invoices. If he is sued by one of his creditors, which of the following courses of action is most likely to be taken by the court? - ✔✔A. Pierce the corporate veil. b: apply the business judgement rule c: Terminate the corporation d: Impose the Rochdale Principles Which of the following legal doctrines will the court apply if the owners of a corporation fail to maintain a formal legal separation between their business and their personal financial affairs? - ✔✔a: respondeat superior B: Piercing the corporate viel c: The business judgement rule d: The rochdale principles Which of the following acts prohibits broker voting unless specific instructions are received from the shareholder? - ✔✔a: The Private Securities Litigation Reform Act b: The Securities Exchange Act c: The National Securities Markets Improvement Act D: The Dodd-Frank Act The lack of regulatory uniformity among the states led Congress in 1996 to enact the _________ preempting state registration requirements for securities traded on national markets. - ✔✔a: Private Securities Litigation Reform Act b: Securities Exchange Act C: National Securities Market Improvement Act d: Dodd-Frank Act Which of the following is true of the securities act of 1933 - ✔✔a. It guarantees the economic merits of any investment opportunity b. It prohibits full disclosure of all material facts...

C. It forbids any interstate offering of a new security until a registration statement has been filed with and approved by the Securities and Exchange Commission. d. The Securities and Exchange Commission has repealed the 1933 Act's prescribed... According to the 1933 Act, during the ______ period, no sales are permitted but a limited amount of solicitation is allowed. - ✔✔a: Shelf registration B: Waiting c: Prefiling d: Posteffective Which of the following presents the company's assets, liabilities, and equity in a registration statement? - ✔✔a: Income statement B: Balance Sheet c: Statement cash flows d: Supplemental information Identify the correct statement about the Securities Act of 1933 - ✔✔a : It allows interstate offering of a new security until... b: It ensured partial disclosure of material facts about the... C: It does not guarantee the economic merits of any investment opportunity d: It gives the Securities and Exchange Commission the power.... Which of the following statements is true of the Securities Act of 1934? - ✔✔a : It allows interstate offering of a new security until... b: It ensured partial disclosure of material facts about the... c: It does not guarantee the economic merits of any investment opportunity D: It gives the Securities and Exchange Commission the power.... Under the 1933 Act, a draft prospectus is included with the filed registration statement. This is known as a _________ prospectus. - ✔✔a: greenmail B: Red Herring

c: crown jewel d: blue sky The principal defense against a section 11 claim is: - ✔✔a: Proxy access b: Disgorgement C: Due diligence d: Broker voting _______ defense refers to a resistance tactic in which the target's management uses corporate cash to buy back the tender offeror's current stake, with a significant premium to "go away" - ✔✔A: Greenmail b: Crown jewel c: Poison pill d: Golden parachute The __________ defense against a takeover involves the target company selling off its most attractive assets. - ✔✔a: Greenmail B: Crown jewel c: Poison pill d: golden parachute Which of the following is a management's takeover defense strategy that gives current shareholders a tender offer-triggered right to buy additional stock at a discount, thus diluting the hostile bidder's shares? - ✔✔a: Golden parachute b: Greenmail C: Poison pill d: Crown jewel ________ refers to the severance pay packages the target's officers may have negotiated to protect themselves in the event of a takeover. - ✔✔a: Greenmail B: Golden parachutes

c: Crown jewels d: Poison pill The business community in America cannot influence the electoral and law-making processes - ✔✔False Corporations can solicit campaign contributions from employees, shareholders, and others - ✔✔True Labor unions can lawfully establish political actions committees to solicit and disburse voluntary campaign contributions - ✔✔True Corporate funds can lawfully be given directly to candidates for federal office - ✔✔False Lobbying is not confined to the business community - ✔✔True The Honest Leadership and Open Government Act of 2007 was part of the most comprehensive lobbying and ethics reform effort in the federal government in many years - ✔✔True The outsourcing of good, high-paid factory jobs from the United States to less developed nations has fundamentally challenged and changed life in the country - ✔✔True Churches are strictly against employing standard business practices such as advertising, promotional giveaways, and marketing campaigns - ✔✔False Business has enjoyed a central and favored role in American life, and as such, it must assume a measure of the burden for the welfare of the total society - ✔✔True Business was largely exempt from any affirmative duty for the resolution of social problems until the 1950s when business scholars and critics began to encourage a broader conception of corporate duty - ✔✔True

The perception of business misdeeds or indifference, in conjunction with the growing influence of business values throughout American life, has led in recent decades to the development of the doctrine of corporate social responsibility - ✔✔True Social enterprise is a movement in which people launch for profits programs, addressing social problems

• ✔✔False According to Milton Friedman, the firm that maximizes its profits is not necessarily maximizing to the society. - ✔✔False Pushing managers to adopt a bigger and broader conception of social responsibility will reduce the chances of establishing a sustainable, enduring global community where resources are not dangerously depleted or damaged - ✔✔False Triple bottom-line advocates call for managerial practices that respect and measure a firm's social and environmental performance just as the firm's financial performance is respected and measured - ✔✔True The primary goal of the triple bottom-line approach is to ensure the maximum short-term viability of an organization - ✔✔False Social accountability accreditation services accredits companies that meet the social accountability 8000 standards in the area of child labor - ✔✔True According to stakeholder advocates, simply maximizing the interests of the primary stakeholders of a corporation, would satisfy a corporation's social duties - ✔✔False An alternative and arguably more "progressive" approach to stakeholders involves a collaborative strategy in which stakeholder relationships are regarded as being mutually defined, cooperative, and reciprocal. - ✔✔True Which of the following is likely to be a result if the corporate community takes an increasingly direct role in the political process? - ✔✔a: The process of globalization will be adversely affected

b: The law-making and implementing process with be strengthened C: The pluralist, democratic approach to governance will be undermined d: The corruption levels will decrease Which of the following is a highly controversial 5-4 ruling by the US Supreme Court in the 2010 Citizens United Case? - ✔✔a: It allowed corporations to coordinate organizational fund spending... b: It held that limiting organizational funds for candidates standing for elections is unlawful c: It allowed corporations to lawfully donate... D: It held that limiting corporate campaign contributions violated corporate free speech rights Which of the following is an impact of the Supreme Court's highly controversial 5-4 ruling in the 2010 Citizens United case? - ✔✔a: The decision has restricted corporations... b: The decision has permitted corporations and labor unions to coordinate organizational... c: The decisions has recognized political spending as a direct... D: The decision has opened the door to gushers of personal and corporate money funneled through Independent Expenditure political action committees. Which of the following statements is true of political action committees (PACs)? - ✔✔a: PACs can only contribute to national elections, and not state elections b: Corporations cannot solicit contributions from employees and shareholders c: The money disbursed by PACs is part of the general corporate accounts D: PACs are only supposed to collect voluntary contributions Which of the following statements is true of corporate funds? - ✔✔A: Although political actions committees' contributions are voluntary, corporate employees often feel pressured to participate b: Corporations cannot solicit... c: Corporations cannot lawfully establish... d: Corporate funds can lawfully be given... The government intervenes to thwart anticompetitive behaviors throughout the marketplace - ✔✔True

A natural monopoly exists where a single large firm, such as a utility, is more efficient than several small ones - ✔✔True When all the costs and benefits of a good or service are fully internalized or absorbed by producers or consumers, those costs or benefits fall elsewhere as externalities - ✔✔False Negative externalities are those in which a decision maker does not receive the full benefit of a decision - ✔✔False The supremacy clause of the US Constitution broadly specifies the power accorded to the federal government to regulate business activity - ✔✔False Optimal efficiency often demands one uniform federal rule rather than a patchwork of 50 state rules - ✔✔True The US Constitution does not expressly forbid state regulation of interstate commerce - ✔✔True Police power refers to the right of the state governments to promote the public health, safety, morals and general welfare - ✔✔True Purely intrastate activities can be regulated by the federal government if they have a substantial effect on interstate commerce - ✔✔True The commerce clause, as interpreted by the judiciary, affords private companies exclusive discretion over foreign commerce - ✔✔False In the event of an irreconcilable conflict between federal and state law, the supremacy clause provides that federal law will preempt state or local law rendering it unconstitutional - ✔✔True States cannot regulate insurance as this is solely a federal responsibilitiy - ✔✔False

Local government intervention in business typically involves various licensure requirements - ✔✔True Administrative law principles are generally applicable to the conduct of state and local governments - ✔✔True Agency commissioners are appointed typically for a life term - ✔✔False Administrative agencies act as pseudo governments, performing purely executive, legislative, and judicial roles - ✔✔False Adjudication ordinarily involves standards to be applied to the future conduct of a class of unspecified parties - ✔✔False Congress controls agency budgets and thus can encourage or discourage particular agency action - ✔✔True Federal agency rules and orders cannot be challenged in court - ✔✔False Which of the following would most likely be considered a negative externality for a manufacturing firm? - ✔✔a: Internal disagreements among the firm's employees b: Unfavorable public opinion about the firm's products C: Air and water pollution as a result of the firm's manufacturing processes d: Government regulations detrimental to the... When all the costs and benefits of a good or service are not fully internalized or absorbed, those costs or benefits fall elsewhere as what economist has labeled __________ - ✔✔a: public goods B: Neighborhood effects c: commoditization d: imperfect information

Today, attention in the monopoly area is largely directed to: - ✔✔a: preventing negative externalities B: curbing anticompetitive conduct c: controlling the formation... d: regulating open competition Which of the following countries follows a communist form of government? - ✔✔a: The US b: Australia C: China d: The United Kingdom _______ was particularly concerned about the growing imbalance between rich and poor and felt that the pursuit of welath and self-interest would erode society's moral core - ✔✔a: Ayn Rand b: Bo Xilai C: Karl Marx d: Anatole Kaletsky Socialism has been associated with ________ - ✔✔a: self-interest and strong pursuit of individual wealth B: Democratic governments and peaceful change c: Totalitarianism and violent revolution d: Economic individualism Identify the correct statement regarding socialists - ✔✔A: They aim to retain the benefits of industrailism while abolishing the social costs often accompanying the free market b: The reserve much of their concern... c: They reject the need for aggressive government... d: They embrace communist totalitarianism...

Which of the following statements about socialists is true? - ✔✔a: Socialists feel that the economy must be directed... b: Socialists reserve much of their concern for the... c: The harshness of working life is not objected... D: Class distinctions are anathema to socialists Which of the following statements corresponds to Karl Marx's beliefs? - ✔✔A: The mode of production in material life determines the general character of the social, political and spiritual processes of life b: Unrestrained capitalism... c: The pursuit of wealth... d: Competition and unrestrained pursuit... Which of the following is true of Robert Putnam's observations on social capital? - ✔✔a: Putnam observed that the practice of free market... b: Putnam observed that a sharpe rise was... C: Putnam observed that virtually every measure of social interaction fell significantly from roughly 1975 to 2000 d: Putnam observed that only three categories of government were necessary: the police, the armed services, and the law courts Identify the underlying reason why socialists advocate income supports, free education, free health care, generous sick pay, and family planning - ✔✔A: Socialists believe that the economy must be directed toward the general interest rather than left free to multiply the welfare of successful capitalists b: Socialists seeks an excessively individualistic... c: Socialists believe that communism harshly... d: Socialists seeks to embrace totalitarianism... Which of the following views was advocated by Ayn Rand, the philosopher and novelist? - ✔✔A: The necessary categories of government were only three in number: the police, the armed services, and the law courts. b: The practice of free market... c: The mode of production in material life...

d: The theory of market fundamentalism is a... The proper balance between _______ remains the central public policy debate in American life. - ✔✔A: Open marketings and government intervention b: personal freedom and private property c: natural resources and personal ambition d: intellectual freedom and social order What efforts have been made by Sweden to keep its economy healthy? - ✔✔a: It has taken an aggressive cowboy... B: It has followed a policy of comparatively low corporate taxes c: It has permitted the sales or lease... d: It has attracted billions in private sector... Which of the following is most likely to be a result of a country maintaining its core welfare commitment in combination with a entrepreneurial spirit? - ✔✔A: An economy of relatively low unemployment, low inflation, and high GDP b: An economy that is impoverished... c: An economy encompassing poverty... d: An economy that has only state-dominated... In terms of markets and governments, the United States: - ✔✔a: has more faith in government planning b: has placed less faith in the market C: Chose a capitalist, democratic approach to life d: reflects a preference for greater central authority In the context of economic systems, the "Third Way" refers to ________ - ✔✔a: Totalitarianism B: Market Socialism c: Capitalism d: Communism

Which of the following countries followed the "Third Way" between the harsher extremes of capitalism and communism? - ✔✔A: Sweden b: US c: China d: Russia The pure free market approach assumes that: - ✔✔a: less faith should be placed in the market... b: legal systems in all countries should reflect... c: centralized authority will result in a free government... D: Business structures and societies can be operated at large free of all but foundational legal mechanisms Which of the following is true of the criticisms of Robert Putnam's thesis - ✔✔A: Robert Putnam was criticized for focusing too much on older activities such as social clubs b: Robert Putnam was criticized for focusing too much on emerging... c: Robert Putnam was criticized for is belief that... d: Robert Putnam was criticized for his belief that state capitalism... In the context of toll roads, parking meters, and congestion pricing, which of the following is true of privatization? - ✔✔a: Privatization brings secure working conditions, increased services... B: Some struggling governments see privatization as a solution for financial distress. c: Growing government revenue problems suggest... d: Privatization often brings increased costs... How do privatization supporters envision major changes to daily life? - ✔✔a: by promising economic justice for all b: By promoting religiosity and building peace C: By citing free market efficiency and personal freedom while challenging moral conventions d: By encouraging economic cooperation and varying degrees of centralized control

Which of the following statements about the economic and political issues of China is true? - ✔✔a: The percapita gross domestic product of China is the highest... b: China's free market liberalization policies of recent years... C: China's gap between rich and poor is estimated to be the world's largest d: Interest in Buddhism has re-emerged after... In the context of state capitalism, explain why government is the dominant economic force. - ✔✔A: The government intervenes in and shapes the market to further the state's political goals. b: The intensity of income disparity between the rich and the poor is relatively low. c: State capitalism favors business to create wealth and government... d: State capitalism fails to blend a shrinking system of state-owned enterprise... According to Robert Putnam, which of the following is true of the growing gap in opportunities among socioeconomic classes of American children? - ✔✔a: Young products of affluence America have withdrawn... b: Today, participation in extracurricular activities... C: Today, the more comfortable class of children receive about one hour per day more time with their parents than less advantaged children d: Less affluent young whites have steadily...