Q&A Hero

Q: (p. 197) Various stakeholder groups often use far different tactics than businesses to influence government officials, elections, and regulation.

Q: (p. 196) In many countries, the political environment has a select few participants.

Q: (p. 196) The emergence of public issues often encourages companies to monitor public concerns, respond to government proposals, and participate in the political process.

Q: (p. 196) Businesses have an absolute right to exist and pursue profits.

Q: (p. 189 - 190) Why does international regulation occur? Discuss the conditions that affect the regulation of business in a global context.

Q: (p. 186 - 189) What could the United States government do about the out of control costs of regulation and the staffing of regulatory agencies in the United States?

Q: (p. 181 - 186) Government regulations come in different forms. Discuss the major types of government regulations of business.

Q: (p. 180 - 181) Identify and compare the four reasons why governments turn to regulation as a way to solve their problems.

Q: (p. 178 - 180) Compare and contrast economic policies with social assistance policies.

Q: (p. 175 - 178) Define each key element of public policy process and provide an illustration or example for each element.

Q: (p. 173 - 175) How do governments seek to cooperate with or work at arm's length with business? Does it matter whether the government is legitimately elected or has illegitimately acquired power?

Q: (p. 189) In 2008 two new global regulations to reduce injuries from accidents by better safety glazing of windows and mandating more geometric fitting head restraints in all vehicles were adopted by the: A. United Nations. B. European Commission. C. National Transportation and Safety Board. D. World Forum for Harmonization of Vehicle Regulations.

Q: (p. 188) Reregulation is: A. The adoption of regulation in another country to promote trade. B. Necessary since all regulation has a time limit. C. The increase or expansion of government regulation. D. The shifting of regulation to the state level from the national level.

Q: (p. 188) Deregulation has occurred in the following industries: A. Commercial airlines, sheet metal, and interstate trucking. B. Commercial airlines, railroads, and financial institutions. C. Commercial airlines, interstate trucking, and silicon chip manufacturing. D. Financial institutions, railroads, and silicon chip manufacturing.

Q: (p. 188) Deregulation is often: A. A politically popular idea. B. A politically unpopular idea. C. Seen during a Democratic federal administration. D. Found in European countries but not in the United States.

Q: (p. 186) Total social regulation costs are: A. Slightly higher than total economic regulation costs. B. Slightly less than total economic regulation costs. C. Significantly higher than total economic regulation costs. D. Equal to total economic regulation costs.

Q: (p. 185) An example of a regulatory agency charged with enforcing social regulation is: A. Federal Aviation Administration. B. Federal Trade Commission. C. Federal Communications Commission. D. Internal Revenue Service.

Q: (p. 185) Which of the following is not an example of a social regulatory agency? A. Consumer Product Safety Commission. B. Equal Employment Opportunity Commission. C. National Highway Traffic Safety Administration. D. National Labor Relations Board.

Q: (p. 181 - 182) Economic regulations: A. Can only exist for 37 years unless renewed. B. Apply only to older industries. C. Always conflict with social regulation. D. Cut across industry lines.

Q: (p. 181) Regulation can be argued as justified based on: A. Collective market theory. B. Utilitarian and justice grounds. C. The life cycle of regulation. D. Tradition.

Q: (p. 181) Which of the following are examples of natural monopolies? A. Electric utilities and railroads. B. Cable television and the media. C. Internet services and trucking. D. None of the above.

Q: (p. 180) The primary way of accomplishing public policy is through: A. Waiting for businesses to act. B. Lobbying Congress. C. Regulation. D. Writing your politician.

Q: (p. 179) By raising and lowering the interest rates at which private banks borrow money from the government, the Federal Reserve Bank: A. Influences the size of the nation's money supply. B. Influences the value of the dollar. C. Minimizes investor confidence about the nation's future. D. Both A and B, but not C.

Q: (p. 179) Policies that affect the supply, demand, and value of a nation's currency are: A. International standards policies. B. Social assistance policies. C. Fiscal policies. D. Monetary policies.

Q: (p. 179) An example of an early economic public policy was: A. The abolition of slavery. B. Public works projects of the Great Depression. C. The creation of the Homeland Security Office. D. President Johnson's Great Society programs.

Q: (p. 178 - 179) Patterns of government taxing and spending that are intended to stimulate or support the economy are: A. International standards policies. B. Social assistance policies. C. Fiscal policies. D. Monetary policies

Q: (p. 178 - 179) Economic policies include: A. Fiscal and monetary policies. B. Monetary and social assistance policies. C. Fiscal and social assistance policies. D. Policies initiated by the Federal Reserve System.

Q: (p. 178) Public policy effects are: A. Impossible to measure. B. Easily quantifiable for the trained public policy expert. C. Only known ten years after the public policy is enacted. D. Sometimes intended and sometimes unintended.

Q: (p. 177) Public policy tools involve a combination of: A. Incentives and political favors. B. Penalties and prison terms. C. Incentives and penalties. D. Political favors and prison terms.

Q: (p. 176) The National Safety Council estimate that motorists using cell phones are: A. As safe as motorists who do not use cell phones. B. Responsible for 6% of U.S. auto accidents each year. C. Ten times more likely to crash. D. More likely to contract ear infections.

Q: (p. 176) Governments being asked to ban the use of cell phones by drivers are examples of a public policy: A. Input. B. Goal. C. Effect. D. Tool.

Q: (p. 176) The Mullahs in Iran is an example of the power of government derived from: A. A monarchy. B. A military dictatorship. C. A religious authority. D. A democracy.

Q: (p. 176) Past decisions of the courts, the original basis for the U.S. legal system, are called: A. Torts. B. Amendments. C. Legitimate actions. D. Common laws.

Q: (p. 175) Public policy is a basic set of goals, plans and actions undertaken by: A. Political lobbyists. B. A government. C. Business advocacy groups. D. Police and fire departments.

Q: (p. 175) An example of an illegitimate government can be seen in: A. Myanmar (Burma). B. Russia. C. The United States. D. Spain.

Q: (p. 174) Cooperation between business and government often occurs when: A. They encounter a common problem or enemy. B. Business can afford it. C. Business is required by law to cooperate. D. Government has the support of the people.

Q: (p. 173 - 175) Around the world, government: A. Tends to cooperate with business. B. Tends to be in conflict with business. C. Sometimes cooperates and sometimes is in conflict with business. D. Tends to be controlled by business.

Q: (p. 173) Governments hold the power to: A. Grant permission for only specific business activity. B. Grant or refuse permission for many types of business activity. C. Refuse permission for only government funded activity. D. None of the above.

Q: (p. 173) Government's role is to create and enforce laws that: A. Control businesses' actions in society. B. Protect businesses' interest in society. C. Protect society from business. D. Balance the relationship between business and society.

Q: (p. 171) In 2009, the International Monetary Fund and the World Bank projected that the global economic crisis would lead to losses: A. Within the financial sector only. B. Of more than $4 trillion in the value of stock and other assets. C. That would prohibit governments from imposing any new regulations. D. Of less than $4 million in the value of stock and other assets.

Q: (p. 170) Managers' understanding of government regulations is: A. Both a domestic and international issue. B. Primarily a domestic issue. C. Primarily an international issue. D. An international issue only for large firms.

Q: (p. 190) The chairman of the International Chamber of Shipping called on the United Nations to loosen global emissions regulations for all vessels.

Q: (p. 189) Sometimes national leaders resist the notion of international regulation, seeking to control matters of commerce themselves within their own countries.

Q: (p. 189) Regulation cannot be applied to international business behavior.

Q: (p. 188) Regulatory activity often is cyclical.

Q: (p. 187) Most experts can agree the government spending on U.S. regulatory activities will begin to decrease by the early 2010s.

Q: (p. 186) Cost-benefit analysis is often used to determine the costs of regulation.

Q: (p. 182) Economic regulations aim at modifying the normal operations of the free market and the forces of supply and demand.

Q: (p. 179) A national health care policy is an example of an economic policy.

Q: (p. 179) Monetary policies refer to policies that affect the supply, demand and value of the nation's currency.

Q: (p. 178) Public policy effects are always unintended consequences of an action.

Q: (p. 176) In non-democratic countries, the power of government may derive from a monarchy, military dictatorship, or religious authority.

Q: (p. 175) Public policy is a plan of action undertaken by business to influence the government.

Q: (p. 174) A cooperative government-business relationship on one issue does not guarantee cooperation on another issue.

Q: (p. 173) In Europe, unions are prohibited by law to be on businesses' administrative boards.

Q: (p. 173) Government and business together establish the regulatory rules under which business operates in society.

Q: (p. 163 - 164) How can triple bottom line reporting be used to measure a firm's corporate citizenship practices?

Q: (p. 162 - 163) Define balanced score card. What are the four quadrants of the balanced score card approach?

Q: (p. 156 - 158) What is a social performance audit? Discuss the differences in social performance auditing in the United States versus Europe.

Q: (p. 155 - 156) Businesses in many different countries now practice active citizenship. Using examples from the text, discuss how businesses interpret and act on their global citizenship commitments.

Q: (p. 152 - 155) Define the five stages of corporate citizenship. Provide an example of a company in each stage.

Q: (p. 151 - 152) Global corporate citizenship is more than espoused values; it requires action. Discuss some of the ways forward-thinking companies are changing to improve their ability to act as responsible citizens.

Q: (p. 147 - 149) Define global corporate citizenship. Why has corporate citizenship recently become so complicated?

Q: (p. 164) Triple bottom line disclosure is primarily driven by: A. Noneconomic drivers. B. Managerial accounting drivers. C. Economic drivers. D. Technological advances.

Q: (p. 164) Rolltronics, a Silicon Valley technology company, uses triple bottom line to report its success with: A. Donating electronic components to Computers for Education. B. Providing computer training programs in developing countries. C. Outsourcing its customer service department to India. D. Innovating its manufacturing process to reduce costs and protect the environment.

Q: (p. 163) Financial, social and environmental results are reported together in a firm's: A. Annual report. B. Code of business conduct. C. Triple bottom line report. D. Employee newsletter.

Q: (p. 163) Which of the following is not a motivation for adopting a balanced score card approach? A. Economic considerations. B. Technological considerations. C. Ethical considerations. D. Innovation.

Q: (p. 162) Which of the following is not one of the four quadrants of the balanced scorecard approach? A. Customer. B. Internal business processes. C. External stakeholder relations. D. Financial.

Q: (p. 161) Companies in which two countries have taken the lead in social reporting? A. Japan and United Kingdom. B. United Kingdom and Italy. C. Japan and Italy. D. Spain and France.

Q: (p. 160) Global audit social standards concentrate on: A. Internally focused economic benefits for the firm. B. Externally focused social benefits for the environment. C. Externally focused social benefits for key stakeholders. D. All of the above

Q: (p. 159) The United Nations Global Compact is funded by: A. Membership income. B. Voluntary government and foundation contributions. C. Government grants. D. All of the above.

Q: (p. 159) The major focus of ISO 14001 is to: A. Link economic, environmental and social responsibility. B. Build accountability in the public sector. C. Support environmentalmanagement standards. D. Structure effective dialogue with stakeholders.

Q: (p. 158) Which of the following organizations have developed standards to judge corporate performance? A. International Organisation for Standards. B. Global Development Initiative. C. Institute of Accountability. D. All of the above.

Q: (p. 157) In 2001, the French Parliament passed the "new economic regulations" law which requires a social performance audit focusing on its impact on: A. Nuclear safety. B. The community. C. Equality in hiring. D. Environmental initiatives.

Q: (p. 156) A systematic evaluation of an organization's social, ethical, and environmental performance is called a(n): A. Corporate social responsibility review. B. Stakeholder audit. C. Independent social review. D. Social performance audit.

Q: (p. 156) The differences in corporate citizenship amongst various nations are driven by: A. Governmental involvement. B. Stakeholder activism. C. Cultural traditions. D. All of the above.

Q: (p. 156) Consumer activism is: A. More pronounced in Europe. B. More pronounced in the United States. C. More pronounced in Asia. D. More pronounced in the Caribbean.

Q: (p. 156) Shareholder activism is: A. More pronounced in Europe. B. More pronounced in the United States. C. More pronounced in Asia. D. More pronounced in the Caribbean.

Q: (p. 156) The executive body of the European Union is called the: A. Executive Committee. B. European Council. C. Governing Body. D. European Commission.

Q: (p. 156) Overall, corporate citizenship initiatives are: A. More advanced in northern than in southern Europe. B. Less advanced in northern than in southern Europe. C. Equally advanced throughout Europe. D. Not making inroads anywhere in Europe.