Download BUS 404 Stern Midterm 1 (Ch. 1-3) Actual Exam Questions | 100% Correct Answers | Verified and more Exams Law in PDF only on Docsity!
BUS 404 Stern Midterm 1 (Ch. 1-3) Actual
Exam Questions | 100% Correct Answers
| Verified 2024 Version
The American financial community's near collapse in late 2008 had been most directly ignited by the subprime mortgage-crisis - ✔✔True Capitalism in American was built on the strong philosophical foundation of personal freedom and private property rights - ✔✔True Democratic capitalism and state capitalism trade with each other for mutual advantage but are economic and political rivals - ✔✔True Capitalism features economic cooperation and varying degrees of centralized control - ✔✔False The term collectivism embraces communism and socialism and similar philosophies on the left side of the political or economic spectrum - ✔✔True Political scientist Benjamin Barber believes that capitalism drags us into decadence by encouraging us to buy as many unnecessary products as we can manage - ✔✔True Socialism embraces totalitarianism while calling for aggressive government intervention to correct economic and social ills - ✔✔False Capitalists fear the irrationality of a society based on competition and unrestrained pursuit of industrial growth - ✔✔False Capitalists consider class distinctions unjust - ✔✔False
Communists are convinced that problems of market failure mean that the free market is simply incapable of meeting the needs of all segments of society - ✔✔False To pay for its comprehensive welfare benefits, the United States takes 50.1 percent of its national income in taxes, the highest rate of any industrialized nation - ✔✔False Sweden and the other Scandinavian states rely on wise government spending as their key ingredient in a successful market-based economy - ✔✔True The pure free market approach adds all forms of government including regulatory agencies, consumer protection, environmental rules, and antitrust law to our business system and our society - ✔✔False American capitalism, despite its extraordinary success, is criticized for problems of poverty, inequality, and unfairness - ✔✔True It is a well-known fact that the United States ranks well on standard social measure not so well on standard economic measures - ✔✔False Taking the privatization movement a step further, state and local governments are selling or leasing existing roads to private companies - ✔✔True Privatization often brings substantially reduced costs and improved expertise - ✔✔True China's reliance on cheap labor to drive its economy still remains unchallenged as other nations are unable to undercut the Chinese advantage - ✔✔False Extravagant wealth, side-by-side with punishing poverty, is perhaps the greatest disappointment and injustice, from the critic's point of view, in the global advance of capitalist principles - ✔✔True In the context of capitalism in America, which of the following most likely led the government to curb the power of big business? - ✔✔Emergence of monopolistic abuse
The proper balance between ____ remains the central public policy debate in American Life - ✔✔open markets and government intervention What efforts have been made by Sweden to keep its economy healthy? - ✔✔It has followed a policy of comparatively low corporate taxes Which of the following is most likely to be a result of a country maintaining its core welfare commitment in combination with an entrepreneurial spirt? - ✔✔an economy of relatively low unemployment, low inflation, and high GDP growth In terms of markets and governments, the United States: - ✔✔chose a capitalist, democratic approach to life In the context of economy systems, the "Third Way" refers to ___ - ✔✔market socialism Which of the following countries followed the "Third Way" between the harsher extremes of capitalism and communism? - ✔✔Sweden The pure free market approach assumes that: - ✔✔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? - ✔✔Robert Putnam was criticized for focusing too much on older activities such as social clubs Identify the result of a growing gap in opportunities among socioeconomic classes of American children:
- ✔✔Children of the well-off express increasing trust in those around them Which of the following involves making a service more expensive at times of peak demand in order to curb that demand? - ✔✔congestion pricing
Identify a reason why some parents and school boards have adopted a free market "fix" - ✔✔Parents and school boards hope that completion will push all schools to high achievement levels In the context of toll roads, parking meters, and congestion pricing, which of the following is true of privatization? - ✔✔Some struggling governments see privatization as a solution for financial distress How do privatization supporters envision major changes to daily life? - ✔✔By citing free market efficiency and personal freedom while challenging moral conventions Which of the following statements about the economic and political issues of China is true? - ✔✔China's gap between rich and poor if estimated to be the worlds largest In the context of state capitalism explain why the government is the dominant economic force? - ✔✔The gov intervenes in and shapes the market to further the stat's political goals According to Robert Putnam, which of the following is true of the growing gap in opportunities among socioeconomic classes of American children? - ✔✔Today, the more comfortable class of children receive about one hour per day more time with their parents than the less advantaged children In the context of liberartiarianism, justice and fairness, right and wrong are measured not by equality of results for all but from ensuring equal opportunity for all to engage in informed choices about their own welfare - ✔✔True Virtue ethics applauds the person who is motivated to fo the right thing and who cultivates that motivation in daily context - ✔✔True To the deontologist, the end is primary and that end or result is the measure of the ethical quality of a decision or act - ✔✔False Kant believed that every ration creature can act according to his or her categorical operative because all such persons have "autonomous, sefl-legislating wills" that permit them to formulate and act on their own systems of rules - ✔✔True
In all nations, the payment of bribes is considered as an unlawful way of doing business - ✔✔False the FCPA requires rigorous internal accounting controls and carefully; record keeping to ensure that all bribes cannot be concealed via slush funds and other devices - ✔✔True Among its major provisions the false Claims Act raises penalties for whistle-blowers to as much as 25 years imprisionment alone with heavy fines - ✔✔False Whistle-blowing appears to be om the rise following the passage of the 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act - ✔✔True Which of the following is an existentialists belief? - ✔✔An existentialists believes no actions are inherently right or wrong Which of the following ethical theories takes essentially a free market view of ethics? - ✔✔Libertarianism Virtue ethics focuses on the classic notion that the key to good ethics lies in a persons - ✔✔character Which of the following provides the foundation for a moral life built on religion - ✔✔faith Which of the following is involved in a teleological view of life - ✔✔Ends A ___ ethical system emphasizes the consequences of an act - ✔✔Teleologist A ___ believes principle is primary and consequence is secondary even irrelevant - ✔✔deontologist A ___ believes that good must be weighted against evil in reaching an ethical decision - ✔✔utilitarian Teleogical ethical systems are often referred to as - ✔✔Consequentialist ethical system
A father may be morally committed to saving his son from a burning building rather than saving another person who might do more total good for society. The action of the rather would be primarily dictated by the ___ ethical system - ✔✔Deontological The principal that is most likely to be followed by a utilitarian is - ✔✔the greatest good for the greatest number Which of the following statements describes the formalistic view of ethics - ✔✔The rightness of an act depends little on the result of the act Identify the correct statement regarding Immanuel Kant's categorical imperative - ✔✔It is the notion that every person should act on only those principles that he as a rational person, would prescribe as universal laws to be applied to the whole of humankind Which of the following Is identified as the postconventional live; of the six universal stages of moral development - ✔✔following self-chosen universal ethical principles Which of the following universal stages is grouped under the conventional level - ✔✔Adhering to stereotypical images which of the following statements symbolizes the idea of a feminine "voice" in view of morality - ✔✔women consider relationships and the needs of others If Kohlberg was correct, a consequence of adults not passing beyond level 2, that is following rules only if it is in their own best interest but letting others do the same and conforming to secure awards, of the six stages is that: - ✔✔managers may behave unethically since they haven't achieved moral maturity Which of the following is the decisive argument in the criticism put forth by Carol Gilligan against Kohlberg proposition on moral development - ✔✔Conceptions on morality are substantially based on gender
The business community in American 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 action 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 most comprehensive lobbying and ethics reform effort in the federal government in many years - ✔✔True The outsourcing of good, high-paid factor 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 of 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 1950's 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 firms that maximizes its profits is not necessarily maximizing its contributions 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 disability of an organization - ✔✔False Social Accountability Accreditation Services accredits companies that meet the Social Accountability 8000 standard in the area of child labor - ✔✔True According to stakeholder advocates, simply maximizing the interests of the primary shareholders 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 stakeholders 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? - ✔✔The pluralist, democratic approach to governance will be undermined Which of the following is a highly controversial 5-4 ruling by the U.S. Supreme Court in the 2010 Citizens United Case? - ✔✔It held that limited corporate campaign contributions violated corporate free speech rights
Which of the following best describes the historical view of business responsibilities till the first half of the twentieth century? - ✔✔The duty of businesses was the production and distribution of the best products services at the lowest possible prices According to the free market view, which of the following is considered the best measure of social responsibility? - ✔✔profit maximization Which of the following falls under the "desired" category of Carroll's Social Responsibility Pyramid? - ✔✔Philanthropic responsibilities Which of the following is a view professed by Nobel prize-winning economist Milton Friedman? - ✔✔Any dilution of the profit-maximizing mode-such as charitable contributions-is a misuses of the stockholders' resources Which of the following statements is true of shared value advocates? - ✔✔They expect businesses to recognize that their goal must be creating shared value rather than profit per se Which of the following falls under the "expected" category of Carroll's Social Responsibility Pyramid? - ✔✔Ethical responsibilities Which of the following statements is true of Carroll's Social Responsibility Pyramid? - ✔✔A company's social responsibility begins with making a profit lawfully An organization that contributes resources to the community and strives to improve the quality of life for the community is most likely fulfilling the discretionary ____ of Carroll's Social Responsibility Pyramid - ✔✔philanthropic responsibilities From a profit maximization point of view, the only responsible and moral course of behavior is to: - ✔✔reap the highest return possible A firm that adopts the triple-bottom line approach: - ✔✔considers its social and environmental responsibilities as important as its financial responsibilities
Which of the following statements is true of the triple bottom-line approach? - ✔✔Financial success is necessary, but social and environmental responsibilities are of equal importance, and corporations paying attention to those social and economic duties will contribute to both organizational and societal sustainability Digi V, an electronics company, focuses on striking a balance between its profits and its responsibility toward the environment. It uses biodegradable substances to manufacture its products and has over the years attracted many loyal customers who are concerned about the environment. The strategy used by Digi V is an example of the : - ✔✔triple bottom-line approach Which of the following best defines the stakeholders of a corporation? - ✔✔All the groups that may significantly affect the corporation's performance or be affected by it Which of the following statements is true of a company that adopts the stakeholder approach? - ✔✔For a company adopting the stakeholder approach, profit depends on the interplay between the corporation, government, and society Which of the following is the first global standard which measures companies' social and environmental records? - ✔✔The Social Accountability 8000 A company that adopts the shareholder approach to business would be most likely make ____ its top priority - ✔✔profit Classical Capitalism vs. Neo-Capitalism - ✔✔Classical:
- decision-making and investment is determined by the owners of the factors of production in financial and capital markets, and prices and the distribution of goods are mainly determined by competition in the market.
- no regulations Neo:
- deregulated corporations
- trick down economics
- privatization
- bank bailouts
What is privatization? - ✔✔-The idea that companies should own things that the government traditionally supplies
- sale or lease of public assets to a private party
- contracting out where govt turns over a portion of its duties to a private firm
- brings reduced costs and improved expertise America has experienced a shift from government funded projects to business-funded. There are negative consequences. (1) the company is unable to bear the burden of the debt and must be bailed out by the government (2) the project goes exceedingly well, private companies prosper, the government suffers Government is a provider, optimizing for social good. Businesses are in the business of making money. In addition, because businesses are subject to higher interest rates, the cost of the project would be higher for a private business than the government, and as a result, would increase tolls, fees, and rates. The status quo is not in line with the vision of America's founders. A lot of private projects relied on government land and grants, and as a result would not exist without the help of the government. The vision is that "the government is everywhere, but the ideology is that government is not there." The government insists that it has no money to finance projects, and as a result, private businesses step in. However, American citizens will pay. Either "through taxes and tolls paid to their government, or through tolls, fees and rates paid to equity investors." Compare and contrast Universal Truths, Teleology, Deontology: - ✔✔Deontology basically says to be fair and not use anyone for selfish reasons whereas teleology says to basically do whatever you need to do to become successful that that the results you produce justifies all your actions. Teleology is a reason or explanation of something in function of its end, purpose or goal. This allows you to explain actions by its results People do things knowing the result they wish to achieve. Universal truth: something that is typical of the whole mankind or of the whole nature. It means to exist and prevail everywhere Read Kantanian, Justice as Fairness and Market Failures Approach, and compare and contrast philosophies; - ✔✔Kantian Approach:
--claim that humanity should be treated always as an end, never as just a means. --singles out temptations to deceive, cheat, or manipulate others to gain an edge as violations of human dignity --claim that deceiving others is disrespectful, because of this claim companies can be at a competitive disadvantage Justice As Fairness: --dominant theory of justice in English-speaking world --scholars argue: Incompatible with significant inequalities of power and authority within businesses Requires people to have an opportunity to perform meaningful work Requires alternative forms of corporate governance and corporate ownership Market Failures Approach: --focuses more on the comprehension of laws and regulations that structure markets and organizations --according to heath, more efficient --fails due to imperfect information, externalities, transaction costs --state corrects market failure through regulation --businesspeople have moral obligation not exploit market failures that laws allow them to Planned Obsolescence - ✔✔the idea that consumer goods are now being made to have a shorter life span than possible, in order for products to break down faster causing the need to buy more products and thus giving the corporations a larger profit Pros- it adds more employees as the more product produced the more jobs needed to fulfill the demand Cons- more hazardous waste, waste of money for consumer Jose Bove and his impact on globalization - ✔✔-activist farmer in France who opposed the WTO
- destroyed McDonalds brick by brick in 1988 to show his opposition to globalism and GMO's
- believed capitalism was was infringing on French identity
place where members of government sort out any trade issues they have
- founded in 1995
- purpose is to help trade flow as freely as possible; ensures there is no sudden changes in policy
- promotes efficiency; helps to keep commerce flowing
- legal disputes that are resolved through arbitration by selected boards (corps)
- Con: encourages a race to the bottom for labor/wages and human rights What is the International Monetary Fund (IMF), who belongs to it, what is its purpose, and what are the pros/cons as stated by it proponents and detractor - ✔✔-188 countries; working to foster global monetary stability
- Pro: facilitate international trade; reduce poverty
- Con: loans conditionally, reduces government borrowing, provides less services, allows bankruptcy and moral instability Pros: Provides loans to member nations in need of bailouts/have a balance of payments deficit Example: 1976 IMF Crisis, UK had to borrow 3.9 billion to buy them time to stabilize their economy with budget cuts Cons: Forces certain policies on governments that actually harms their economy Example: Asian Crisis of 1997, Countries such as Indonesia, Malaysia, and Thailand were forced to increase taxes and decrease spending in order to obtain loans but instead of helping economy, it slowed down their economies and led to recessions Big Con: Lots of countries get taken advantage of by corporations. IMF will give a loan to a country and force it to undergo certain policy changes, most of which are outsourced to private corporations from foreign countries. All the money that comes from these loans go to the private corporations and the changes are implemented, but the country is left with this huge loan that it doesn't have the money to pay. The country ends up becoming hostage to private corporations. What is the World Bank who belongs to it, what is its purpose, and what are the pros/cons as stated by it proponents and detractor. - ✔✔--The world bank is a financial institution that provides loans to countries for capital programs. It deals more with 3rd world countries (different than IMF), working to end poverty, and support fostering the income for the bottom 40% of each country. Made up of 189 member countries (one board member per country). The world bank is based out of Washington D.C and is
funded by its supporting countries. The countries who support the most (U.S) dictate how it is run, which can lead to unfair loans. Pros: - Global Growth (accelerated to 3.1% in 2018)
- Works to end poverty, helping countries in need EX: World Bank assisted in post tsunami recovery in the maldives. Supported education and financial capabilities Cons: - Loans often have conditions that end up negatively affecting the country (countries providing the capital want something in return)
- Projects negatively affect the inhabitants of the country EX: Forest conservation project in Kenya backed by the world bank ended up displacing close to 1,000 people. 1st Amendment - ✔✔Freedom of Speech 5th Amendment - ✔✔"No person shall be held to answer for a capital, or otherwise infamous crime, unless on a presentment or indictment of a grand jury, except in cases arising in the land or naval forces, or in the militia, when in actual service in time of war or public danger; nor shall any person be subject for the same offense to be twice put in jeopardy of life or limb; nor shall be compelled in any criminal case to be a witness against himself, nor be deprived of life, liberty, or property, without due process of law; nor shall private property be taken for public use, without just compensation." The clauses incorporated within the Fifth Amendment outline basic constitutional limits on police procedure. While the Fifth Amendment originally only applied to federal courts, the U.S. Supreme Court has partially incorporated the 5th amendment to the states through the Due Process Clause of the Fourteenth Amendment. 10th Amendment - ✔✔The Tenth Amendment was included in the Bill of Rights to further define the balance of power between the federal government and the states. The amendment says that the federal government has only those powers specifically granted by the Constitution. 13th Amendment - ✔✔abolished slavery and involuntary servitude, except as punishment for a crime.
