Exam 5: Corporations

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.

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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.

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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.

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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.

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A) more power.
B) more money.
C) too many limits .
D) social responsibility.

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A) corporations don't need moral codes.
B) corporate culture refers to the cultural activities sponsored by the company for its employees.
C) pollution caused by corporations isn't an externality.
D) corporate culture can be both explicit and implicit.

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