ACC 309 WEEK 5 CHAPTER 4 AND 5 QUIZ
1. Rather than strong work ethic, a common attitude is:

A. Me-first
B. I like it easy
C. Happy days are here to stay
D. Let the boss sweat it
Answer;A. Me-first

2. The profit motive

A. is a fundamental feature of all societies.
 B. is no longer a key feature of capitalism.
 C. must be checked by competition if society is to benefit.
 D. is basically immoral.
Answer;  C. must be checked by competition if society is to benefit.

3. How many Americans believe that “if you work hard enough, you’ll make it?”

A. One out of two.
 B. One out of three.
 C. One out of four.
 D. One out of five.
Answer;  B. One out of three.

4. An assessment of work in America is

A. American manufacturing is growing faster than ever.
B. American corporations ignore short-term performance.
C. manufacturing still employs more people than government.
D. many manufacturing companies have become “hollow” or “weightless”.
Answer; D. many manufacturing companies have become “hollow” or “weightless”.

5. A basic premise of Adam Smith’s invisible hand argument is
 

A. human beings try to avoid acquisitive behavior.
B. when people are left to pursue their own economic interests, disaster looms.
C. the division of labor, though good for the firm, reduces overall efficiency.
 D. We often get what we want from others by offering something they need from us.
Answer;A. human beings try to avoid acquisitive behavior.

6. The Fugger dynasty was an example of

A. industrial capitalism.
 B. financial capitalism.
 C. mercantile capitalism.
 D. globalized capitalism.
Answer;C. mercantile capitalism.

7. Which statement best describes capitalism?

A. Capitalism is an economic system in which the means of production and distribution is in state hands.
 B. Capitalism is an economic system that operates under the profit motive.
 C. Capitalism is an economic system that dispenses with competition.
 D. Capitalism is an economic system where the profits generated belong to the state as a whole.
Answer;A. Capitalism is an economic system in which the means of production and distribution is in state hands.

8. Karl Marx believed that

A. capitalist workers suffer from alienation.
 B. capitalism no longer exploits workers.
 C. industrialization does away with alienation.
 D. workers are alienated from their products, but not from themselves or other people.
Answer; A. capitalist workers suffer from alienation.

9. A basic tenet of capitalism is that

A. property refers only to physical objects.
 B. ownership is a simple relationship between a person and the thing owned.
 C. capitalism requires private ownership of the major means of production.
 D. in the 21st century, capitalism no longer requires capital.
Answer; C. capitalism requires private ownership of the major means of production.

10. One of the key features of capitalism is

A. favoritism.
 B. cooperation.
 C. inequality.
 D. competition.
Answer; D. competition.

11. Marxism states

A. capitalism leads to a concentration of property and thus a concentration of resources and power in relatively few hands.
 B. socialism will eventually be replaced by financial capitalism.
 C. the means of production should be placed under the control of the bourgeoisie.
 D. only workers who are poorly paid in a capitalist system are alienated.
Answer; A. capitalism leads to a concentration of property and thus a concentration of resources and power in relatively few hands.

12. Which statement accurately describes capitalism?

A. Industrial capitalism is characterized by pools, trusts, holding companies and an interpenetration of banking, insurance and industrial interests.

B. Mercantile capitalism emerged in the United States in the period directly following the civil war.
 C. In state welfare capitalism the government plays an active role in regulating economic activities in an effort to smooth out the boom-and-bust pattern of the business cycle.
 D. Financial capitalism developed in the period immediately prior to the Renaissance.
Answer; A. Industrial capitalism is characterized by pools, trusts, holding companies and an interpenetration of banking, insurance and industrial interests.

13. According to one survey of cultural values

 A. Americans value work more than Japanese do.
 B. for Americans, only good health is more important than work.
 C. Americans typically value things like their children’s education and a satisfactory love life more than work.
 D. Americans place no value on work, only on money.
Answer; C. Americans typically value things like their children’s education and a satisfactory love life more than work.

15.Which of the following historical stages of capitalism came first?

A. financial
B.mercantile
 C. industrial
 D. state welfare
Answer; B.mercantile

16. Many economists are concerned that the growing trade deficit makes the U.S. vulnerable to

 A. terrorist attacks.
 B. ease.
 C. depression.
 D. economic extortion.
Answer;D. economic extortion.

17. Kenneth Arrow discussed two important situations in which profit maximization can be socially inefficient. One of these occurs when

A. there is an imbalance of knowledge between buyer and seller.
 B. business would be an “inept custodian” of public values.
 C. firms are unwilling or simply refuse to maximize profits.
 D. corporate culture promotes dysfunctional social relations.
Answer; A. there is an imbalance of knowledge between buyer and seller.

18. Momentum for the corporate organization of business really gained momentum after which war?

 A. Revolutionary War
 B. Civil War
 C. French and Indian War
 D. World War I
Answer;  B. Civil War

19. Which of the following is one of the three arguments in favor of narrow corporate social responsibility discussed in Chapter 5?

A. business-can-handle-it
 B. society-lacks-the-expertise
 C. let-government-do-it
 D. visible-hand
Answer; A. business-can-handle-it

20. One of the three important “limits to what the law can do” discussed by Christopher Stone is

A. laws are passed before there is any real problem to worry about.
 B. consumers don’t want further legal regulation.
 C. designing effective regulations is difficult.
 D. regulators are often “bought off” by corporations.
Answer;  C. designing effective regulations is difficult.

21. Which of the following contributed to the more relaxed incorporation procedures of modern times?

A. The idea that incorporation is a by-product of the people’s right to associate, not a gift from the state.
B. The move from mercantilist thinking to a belief in Benjamin Franklin’s invisible hand.
C. The idea that incorporation is a gift from the state.
D. The thought that laissez-faire is a losing proposition..
Answer; A. The idea that incorporation is a by-product of the people’s right to associate, not a gift from the state

21. The idea that corporations are moral agents

A. is accepted by many people and companies without hesitation.
B. has not been accepted by the courts.
C. has not been accepted by any major corporation.
D. is supported by the fiduciary relationship between management and shareholders.
Answer; A. is accepted by many people and companies without hesitation.

22. Which of the following do advocates of the broader view of corporate social responsibility believe?

A. Corporations should not internalize their externalities.
B. Moral responsibility arises from social power.
C. Corporations have moral obligations to consumers, to employees, to suppliers and contractors, to the surrounding community, and to society at large.
D. The moral contract between business and society has changed since the 19th century.
Answer; C. Corporations have moral obligations to consumers, to employees, to suppliers and contractors, to the surrounding community, and to society at large.

23. Milton Snoeyenbos argues that

A. settled economic life requires purely selfish behavior.
B. with ethical codes, there’s no need for taxes, laws, or regulations as a way of controlling corporate behavior.
C. Corporate moral codes can make it more reasonable to expect employees to behave ethically.
D. to be viable, ethical codes need not be widely accepted or part of corporate culture.
Answer; C. Corporate moral codes can make it more reasonable to expect employees to behave ethically.

24. Milton Friedman argues that

 A. corporations today should adopt a broader view of their social responsibilities than they have in the past.
 B. corporate officials have a social responsibility that goes beyond serving the interests of their stockholders.
 C. strict governmental controls are necessary if society is to maximize its overall economic well-being.
 D. a business’s only social responsibility is to maximize profits within the rules of the game.
Answer;  D. a business’s only social responsibility is to maximize profits within the rules of the game.

25. The “rules of the game” for corporate work are intended to

A. let the games begin.
B. destroy the competition.
C. promote open and free competition.
D. make business fun.
Answer; C. promote open and free competition.

26. The statement that accurately describes corporations is

A. corporate shareholders have limited liability for their debts.
B. corporations must be “publicly held” and thus traded on the stock market.
C. corporations are always for-profit.
D. corporate shareholders are immediately entitled to any profits.
Answer; A. corporate shareholders have limited liability for their debts.

27. In the corporate world, the board of directors will typically

A. rubber stamp the policies and recommendations of the management.
B. write the policies and procedures.
C. be there just for show.
D. hire and fire people for key management positions.
Answer; A. rubber stamp the policies and recommendations of the management.

28. A common point of contention about corporations is

A. corporate punishment is no different from individual punishment.
B. modern corporations no longer utilize a CID structure.
C. philosophers and business theorists disagree whether corporations are moral agents.
D. if corporations are moral agents, then this relieves individual human beings of any moral responsibility.

Answer; C. philosophers and business theorists disagree whether corporations are moral agents.

29.Melvin Anshen suggests that there is a relationship between business and society which he termed as

A. “share the wealth.”
B. “the rich get richer and the poor get poorer.”
C. “social contract.”
D.“one for all and all for one.”
Answer; C. “social contract.”

30. Corporations differ from partnerships and other forms of business association in two ways. One of these is that

A. they are regulated by the Federal Trade Commission.
B. they are formed simply by an agreement entered into among their members.
C. they must be publicly registered or in some way officially acknowledged by the law.
D. their shareholders are entitled to their share of the company’s profits as soon as they are ascertained or determined.

Answer; C. they must be publicly registered or in some way officially acknowledged by the law.

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