Q&A Hero

Q: (p. 5) Which of the following is the result of an inseparable relationship between business and society? A. All business decisions have a social impact. B. The vitality of business depends on society's actions and attitudes. C. The survival of business is independent of society. D. Both A and B, but not C.

Q: (p. 5) Which of the following examples best illustrates the boundary exchanges a company would encounter according to the general systems theory? A. An industrial company installs new equipment in its plant to comply with environmental regulations. B. A software company develops an application for a client. C. A purchasing department employee negotiates a price on parts from a supplier. D. All of the above.

Q: (p. 4) Which statement is not correct about the business-society interdependence? A. Business is a part of society. B. Business is separated from the rest of society by clear boundaries. C. Business activities impact other activities in society. D. Actions by governments rarely significantly affect business.

Q: (p. 19) The external environment of business is static.

Q: (p. 17) A stakeholder map is a useful tool, because it enables managers to see quickly how stakeholders feel about an issue and whether salient stakeholder tend to be in favor or opposed.

Q: (p. 16) Urgency refers to the extent to which a stakeholder's actions are seen as proper or appropriate by the broader society.

Q: (p. 16) Some scholars have suggested that managers pay the most attention to stakeholders possessing the least salience.

Q: (p. 15) Stakeholders involved with one part of a company often may have little or no involvement with another part of the company.

Q: (p. 14) The interests of different stakeholders often coincide.

Q: (p. 13) Each stakeholder group has only one source of power in relation to a firm.

Q: (p. 9) Market stakeholders include nongovernmental organizations and the media.

Q: (p. 8) Nonmarket stakeholders are those that engage in economic transactions with the company as it carries out its primary purpose of providing society with goods and services.

Q: (p. 6) The normative argument for the stakeholder theory of the firm says that the stakeholder view is simply a more realistic description of how companies really work.

Q: (p. 6) The instrumental argument for the stakeholder theory of the firm says that companies perform better if they consider the rights and concerns of multiple groups in society.

Q: (p. 6) The stakeholder theory of the firm argues that a firm's sole purpose is to create value for its shareholders.

Q: (p. 4) Businesses and society are independent of one another.

Q: (p. 4) A business is any organization that is engaged in making a product or providing a service for a profit.

Q: (p. 3) General Motors has been called a "template for 21st century capitalism."

Q: (p. 444 - 447) Define a corporate crisis. Outline an effective crisis management plan for a public relations manager.

Q: (p. 443 - 444) How is the public protected through government regulations?

Q: (p. 440 - 443) Evaluate public opion influencing strategies used by business organization, such as public service announcements, image advertisements, and issue advertisements.

Q: (p. 439 - 440) What new challenges emerge when public relations strategies take on a global perspective?

Q: (p. 436 - 439) As new technologies have emerged, the variety of available channels of communication has grown dramatically. Discuss the new technology-enhanced channels for public relations and how they have affected the discipline.

Q: (p. 434 - 436) Why do firms create public relations departments? Outline the structure and activities of a typical department.

Q: (p. 433 - 434) Define the general public. How do firms and the public affect one another?

Q: (p. 449) Emphasizing key points and guiding the reporter to them is called: A. Hooking. B. Bridging. C. Flagging. D. Gapping.

Q: (p. 448) A rule of media communication is to: A. Be honest. B. Be current. C. Be accessible. D. All of the above.

Q: (p. 447) Seeking to restore the firm's reputation takes place during this effective crisis management step: A. Communicate quickly, but accurately. B. Do the right thing. C. Follow up and, where appropriate, make amends to those affected. D. Create and document policies and procedures.

Q: (p. 442) Harry and Louise were credited with: A. Helping to kill President Clinton's government-backed health care reform plan. B. Explaining the unprecedented increases in gasoline prices in 2006 and 2007. C. Inviting the public to research in greater depth what constitutes rising prices of gasoline at the pumps. D. Fighting the pornography industry against inappropriate child advertising.

Q: (p. 447) Scenario-based press releases, key discussion points, and procedures to activate the organization's Web site are all part of which step in an effective crisis management plan? A. Get ready before the crisis hits. B. Communicate quickly, but accurately. C. Use the Internet. D. Do the right thing.

Q: (p. 442) What describes the practice of businesses using their public relations' outreach in ways to influence the public's opinion of a political or legislative issue of concern to the company? A. Advocacy advertising. B. Issue advertising. C. Capstone advertising. D. Both A and B, but not C.

Q: (p. 445) Crises are: A. Not unique. B. Always tragedies. C. Often unexpected events. D. Rarely disruptive.

Q: (p. 441) Coca-Cola's classic advertisement campaign, "It's the real thing," is an example of: A. Image advertisements. B. Capstone advertisements. C. Public service announcements. D. Issue advertisements.

Q: (p. 445) Which of the following is a type of corporate crisis? A. Acts of God. B. Management indecision. C. Mechanical problems. D. All of the above.

Q: (p. 441) What media technique is used to promote the general perception of a product or service, rather than promoting its functional attributes? A. Capstone advertisements. B. Issue advertisements. C. Public service announcements. D. Image advertisements.

Q: (p. 444) A significant business disruption that stimulates extensive news media and social networking coverage is called a(n): A. Explosion. B. Crisis management. C. Corporate crisis. D. Human error.

Q: (p. 440) The Ad Council's inaugural campaign slogan was: A. "Friends don't let friends drink and drive." B. "A mind is a terrible thing to waste." C. "Loose lips sink ships." D. "Only you can prevent forest fires."

Q: (p. 439) A highly toxic gas that can irritate the respiratory system leading to severe coughing, vomiting, and in some cases lung cancer, is called: A. Chlorine. B. Oxygen. C. Lavender oil. D. Salt.

Q: (p. 444) The act passed to allow virtually any business to enter the telecommunications industry is called: A. 2009 Cable and Television Act. B. 1996 Telecommunications Act. C. 1975 Interstate Wire Communications Act. D. 1893 Federal Communications Act.

Q: (p. 438) A new public relations outlet for businesses as demonstrated by Wal-mart is: A. Text messages. B. Chat rooms. C. Blogs. D. Vlogs.

Q: (p. 444) The agency created in 1934 and charged with regulating interstate and international communications by radio, television, wire, satellite, and cable is called: A. Online Privacy Commission. B. Securities and Exchange Commission. C. Federal Communications Commission. D. Federal Trade Commission.

Q: (p. 443) The Federal Trade Commission attempts to ensure that the public is protected against which of the following unethical business practices? A. The creation of industry cartels. B. The use of deception to distort the truth. C. Exchange rate manipulation by a country. D. None of the above.

Q: (p. 438) This company launched the "connecting through cookies" in an effort to help their primary audience, women, improve their lives: A. Whole Foods Market. B. Campbell Soup Company. C. Wendy's. D. Nabisco.

Q: (p. 443) Which of the following statements is true about the right to free speech? A. Free speech is not an unrestricted right. B. Free speech comes with the obligation of acting in the best interest of the public. C. Free speech requires adhering to ethical principles. D. All of the above.

Q: (p. 438) In 2009, the second most common media outlet for business was: A. Television. B. Radio. C. Newspaper. D. Online advertising.

Q: (p. 443) The right to free speech is protected under the U.S. Constitution's: A. Fifth Amendment. B. Third Amendment. C. First Amendment. D. Preamble.

Q: (p. 438) GPS is an acronym for: A. Global positioning system. B. Global public strategy. C. Group performance session. D. Group philanthropy segment.

Q: (p. 438) According to comScore, a provider of digital intelligence, in December 2008 the total number of individuals, aged 15 and older, who accessed the Internet from their home or work computers was: A. 100,000. B. 1 million. C. 1 billion. D. 10 billion.

Q: (p. 436) According to a recent study by the University of Southern California's Annenberg Center, what percentage public relations officers surveyed report directly to the CEO? A. 30 percent. B. 66 percent. C. 75 percent. D. 90 percent.

Q: (p. 444) The Federal Trade Commission serves as a public watchdog evaluating honesty and fairness in advertising.

Q: (p. 436) The International Public Relations Association was founded in: A. 2009. B. 1970. C. 1955. D. 1930.

Q: (p. 438) The Internet-based communication revolution has significantly benefited only large organizations.

Q: (p. 436) The professional core values for the Public Relations Society of America include: A. Advocacy and honesty. B. Expertise and independence. C. Loyalty and fairness. D. All of the above.

Q: (p. 435) In 1889, the first public relations department was created by: A. John Rockefeller. B. George Westinghouse. C. Andrew Carnegie. D. Franklin Pierce.

Q: (p. 436) Historically, public relations officers worked mostly through contact with traditional media outlets.

Q: (p. 436) Members of the Public Relations Society of America are expected to adhere to the core values of advocacy, honesty, and fairness, among others.

Q: (p. 434 - 435) As one group of scholars has written, the essential role of the public relations program appears to be that of: A. A window out of the corporation through which management can perceive, monitor, and understand external change. B. A window in through which society can influence corporate policy and practice. C. Making sure that the reputation of the CEO is preserved. D. Both A and B, but not C.

Q: (p. 436) The Public Relations Society of America is the government agency charged with regulating advertisements in the United States.

Q: (p. 434) A good public relations program: A. Sends a constant stream of information to the company's stakeholders. B. Is separate from the company's public affairs program to avoid conflicts of interest. C. Should be primarily reactive, responding to issues as they arise. D. Is necessary only for highly vulnerable companies.

Q: (p. 434) The major activity carried out by public relations managers is writing blogs.

Q: (p. 433) In 2007, the Cartoon Network was fined for public disruption of the Bostonian transportation system while using a new form of public relations called: A. Guerilla advertising. B. Terror advertising. C. Attack advertising. D. Strike advertising,

Q: (p. 435) An example of indirect communications is through television.

Q: (p. 435) An example of direct communications is through a company Web site.

Q: (p. 447) Key employees must be identified in advance of a crisis so that they are ready to address the issue.

Q: (p. 444) The public scrutiny following a corporate crisis can have a political, legal, financial, and governmental impact on its business.

Q: (p. 435) A public relations program should be reactive, not proactive.

Q: (p. 435) The public relations function is a boundary-spanning role that primarily involves the flow of information to and from the organization.

Q: (p. 444) The Securities and Exchange Commission is charged with regulating interstate and international communications by radio, television, wire, satellite, and cable.

Q: (p. 434) An effective public relations program is not fundamental to an organization's relationship with the public.

Q: (p. 432) How the general public perceives a business firm can have a major effect on its performance.

Q: (p. 425) Factor conditions are strategic contributions focusing on: A. The supply of trained workers, physical infrastructure, and natural resources. B. Policies that create a more productive environment for competition. C. The demand for a product or service. D. All of the above.

Q: (p. 425) According to a Harvard Business Review study, which of the following is not an area in which corporate contributions are most likely to enhance a company's competitiveness? A. Context for strategy and rivalry. B. Demand conditions. C. Stakeholder management. D. Factor conditions.

Q: (p. 426 - 427) Explain four strategies that businesses can use to help them get the most benefit from their contributions. Cite examples of companies that adopt these strategies.

Q: (p. 425 - 426) Describe how companies can target their corporate contributions strategically to meet the needs of the recipient while satisfying business goals and objectives. Cite an example.

Q: (p. 424) In a study conducted by the Council on Foundations, companies with high Corporate Philanthropy Index (CPI) scores: A. Gave more money than companies with low CPI scores. B. Had better reputations and generated more admiration than others did. C. Gave more of their time to community projects than others did. D. All of the above.

Q: (p. 421 - 424) Discuss the three forms of gifts typically made by corporations and their foundations. Which form of gift do you think is most valuable, and why?

Q: (p. 423 - 424) Which of the following sectors receives the largest percentage of corporate cash and in-kind contributions? A. Health and human services. B. Education. C. Civic and community. D. Culture and arts.

Q: (p. 414 - 418) In your opinion, what are the most pressing and significant concerns facing communities today? Why do you think so? How would a business' community relations department address that concern?

Q: (p. 423) How do companies encourage their employees to volunteer their time? A. By publicizing specific projects. B. By offering recognition for service. C. By publicizing opportunities to serve. D. All of the above.

Q: (p. 414 - 418) Discuss the ways a business can demonstrate organized involvement with the community. Which way do you feel is the most important? Why?