According to general systems theory, boundary exchanges are exemplified by which of the following

Business & Society, 16e (Lawrence)

Chapter 1 The Corporation and Its Stakeholders

1) Amazon has been called "Earth's biggest store."

Answer: TRUE

Difficulty: 1 Easy

Learning Objective: 01-01 Understanding the relationship between business and society and the

ways in which business and society are part of an interactive system.

Accessibility: Keyboard Navigation

Gradable: automatic

2) A business is any organization that is engaged in making a product or providing a service for a

profit.

Answer: TRUE

Difficulty: 1 Easy

Learning Objective: 01-01 Understanding the relationship between business and society and the

ways in which business and society are part of an interactive system.

Accessibility: Keyboard Navigation

Gradable: automatic

3) Businesses and society are independent of one another.

Answer: FALSE

Difficulty: 1 Easy

Learning Objective: 01-01 Understanding the relationship between business and society and the

ways in which business and society are part of an interactive system.

Accessibility: Keyboard Navigation

Gradable: automatic

4) The stakeholder theory of the firm argues that a firm's sole purpose is to create value for its

shareholders.

Answer: FALSE

Difficulty: 1 Easy

Learning Objective: 01-02 Considering the purpose of the modern corporation.

Accessibility: Keyboard Navigation

Gradable: automatic

1

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written consent of McGraw-Hill Education.

Chapter 1 The Corporation and Its Stakeholders

1) Amazon has been called "Earth's biggest store."

2) A business is any organization that is engaged in making a product or providing a service for a

profit.

3) Businesses and society are independent of one another.

4) The stakeholder theory of the firm argues that a firm's sole purpose is to create value for its

shareholders.

5) 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.

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.

7) 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.

8) Market stakeholders include nongovernmental organizations and business support groups.

9) Government can be considered both a market and nonmarket stakeholder.

10) The interests of different stakeholders often coincide.

11) Stakeholders involved with one part of a company may have little or no involvement with

another part of the company.

12) Some scholars have suggested that managers pay the most attention to stakeholders

possessing the least salience.

13) Urgency refers to the extent to which a stakeholder's actions are seen as proper or appropriate

by the broader society.

14) A corporation's investor relations department interacts mainly with shareholders.

15) The external environment of business is static.

16) 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 affect business.

17) According to general systems theory, boundary exchanges are exemplified by which of the

following?

What is general systems theory quizlet?

What is the purpose of the firm under the shareholder theory of the firm?

Which one of the following is considered to be a nonmarket stakeholder of business quizlet?

What is the purpose of the firm under the shareholder theory of the firm quizlet?