Chapter 2 Multiple Choice Questions

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. A corporation is ________ from its managers, employees, investors and customers. It therefore has _______ succession and also ________.

Indistinguishable, Perpetual, Does not own its own assets correct incorrect

Independent, Limited, Owns its own assets correct incorrect

Independent, Perpetual, Owns its own assets correct incorrect

Indistinguishable, Perpetual, Owns its own assets correct incorrect

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. Which of the following statements are correct, given the definition and legal status of corporations?
1. Corporations are typically regarded as 'artificial' persons in the eyes of the law
2. Managers cannot typically be individually prosecuted for wrongdoing or fraudulent and illegal behaviour
3. Corporations are notionally 'owned' by shareholders, but exist independently of them
4. Managers and directors have a fiduciary responsibility to protect the investment of shareholders

1,3,4 correct incorrect

1,2,3, correct incorrect

1,2,4 correct incorrect

2,3,4 correct incorrect

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. Beyond the business case for engaging in CSR there are a number of moral arguments relating to: negative _______, the _______that corporations possess and the ________ of business and society.

Externalities, Power, Independence correct incorrect

Publicity, Insubstantial resources, Mutual dependence correct incorrect

Publicity, Power, Independence correct incorrect

Externalities, Power, Mutual dependence correct incorrect

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. According Carroll what four categories or aspects can corporate social responsibility be broken down into?

Political, Legal, Ethical and Philanthropic correct incorrect

Economic, Legal, Ethical and Philanthropic correct incorrect

Economic, Legal, Cultural and Philanthropic correct incorrect

Economic, Legal, Ethical and Environmental correct incorrect

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. What are, according to Wood (1991), the three outcomes of CSR?

Social policies, Social programmes and Social impacts correct incorrect

Social evaluations, Social programmes and Social impacts correct incorrect

Social policies, Social evidencing and Social impacts correct incorrect

Social policies, Social programmes and Social analysis correct incorrect

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. According to Evan and Freeman (1993), the Principle of ________ and the Principle of _______ can be used in a specific situation to determine who constitutes a _______.

Corporate rights, Corporate effect, Stakeholder correct incorrect

Corporate deniability, Corporate effect, Stakeholder correct incorrect

Corporate rights, Corporate responsibility, Stakeholder correct incorrect

Corporate rights, Corporate effect, Shareholder correct incorrect

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. What are the three differing types of stakeholder theory according to Donaldson and Preston (1995)?

Normative, Descriptive and Economic correct incorrect

Normative, Moral and Instrumental correct incorrect

Political, Descriptive and Instrumental correct incorrect

Normative, Descriptive and Instrumental correct incorrect

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. ______ is the corporate role in governing citizenship rights for the individual

Political Corporate Social Responsibility correct incorrect

Triple Bottom Line correct incorrect

Sustainability correct incorrect

Corporate Citizenship correct incorrect

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. The degree to which corporate decisions, policies, activities and impacts are acknowledged and made visible to relevant stakeholders is known as ________

Corporate Opaqueness correct incorrect

Corporate Transparency correct incorrect

Corporate Openness correct incorrect

Corporate Visibility correct incorrect

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. What, according to Schnackenberg and Tomlinson (2014), are the three criteria which can be used to assess the quality of corporate transparency?

Breadth, Clarity, Accuracy correct incorrect

Disclosure, Detail, Accuracy correct incorrect

Disclosure, Clarity, Accuracy correct incorrect

Disclosure, Clarity, Efficiency correct incorrect