Chapter 4 Assessment Questions
Chapter 4 Assessment Questions
1.
True or false? Corporations that embrace CSR policies consistently produce a lower rate of return on investment for shareholders.
2.
True or false? Milton Friedman’s economic philosophy advocates increased government regulation to ensure that corporations are socially responsible.
3.
Which of the following is not true?
Shareholder primacy is the clear legal precedent in the United States.
Maximizing shareholder profits is a legitimate goal of management.
Dividends are paid out of corporate profits.
Companies that pursue CSR policies can also be profitable.
4.
Industries like to be in control of their own destiny and as a result prefer self-regulation to laws imposed by governments. Self-regulation is often ________.
based on external codes of conduct
enforced by the courts
in conflict with common law
less costly for firms than government regulation
5.
Identify two benefits for a company following a policy of corporate social responsibility (CSR).
6.
What is earth jurisprudence?
7.
Which of the following best describes the tragedy of the commons?
People are always willing to sacrifice for the good of society.
People are likely to use all the natural resources they want without regard to others.
The common good of the people is a popular corporate goal.
Tragedies occur when there is too much government regulation.
8.
ISOs are sustainability standards for businesses ________.
promulgated by the state government
promulgated by the federal government
promulgated by the World Trade Organization
none of the above
9.
True or false? If environmental harm is discovered, the business entity causing it is frequently held liable by both the government and the victims of the harm in separate proceedings.
10.
Which of the following is a potentially effective way to reduce global warming?
build more coal-burning power plants
build more diesel-burning cars
implement a carbon tax
implement tax-free gasoline
11.
True or false? The law prohibits all executives from serving in senior government posts and then leaving to go back to work for the same company in the private sector.
12.
True or false? Air pollution is regulated by three levels of government: local, state, and federal.
13.
Which of the following is true?
Very few business executives have ever left private jobs to go into government service.
Most government regulatory agencies are funded by donations.
Numerous executives have left Goldman Sachs to go to work for the government.
Few people leave government service to go into the private sector.
14.
Which of the following constitutional provisions gives regulatory power to the federal government?
First Amendment
Tenth Amendment
Commerce Clause
Supremacy Clause
15.
The Citizens United case ________.
upheld existing law limiting spending on behalf of political candidates
overturned existing law
sent the case back to the lower court to be re-tried
created more restrictive limits on political spending
16.
What Amendment was at the center of the Citizens United case? Explain.
