{"id":186076,"date":"2025-01-24T05:54:00","date_gmt":"2025-01-24T05:54:00","guid":{"rendered":"https:\/\/learnexams.com\/blog\/?p=186076"},"modified":"2025-01-24T05:54:02","modified_gmt":"2025-01-24T05:54:02","slug":"which-argument-says-that-stakeholder-management-realistically-depicts-how-companies-really-work","status":"publish","type":"post","link":"https:\/\/www.learnexams.com\/blog\/2025\/01\/24\/which-argument-says-that-stakeholder-management-realistically-depicts-how-companies-really-work\/","title":{"rendered":"Which argument says that stakeholder management realistically depicts how companies really work"},"content":{"rendered":"\n<p>Which argument says that stakeholder management realistically depicts how companies really work?<br>A. Descriptive argument<br>B. Instrumental argument<br>C. Normative argument<br>D. Fiduciary argument<br>Question<br>2<br>A<br>stakeholder analysis:<br>A. creates equality among all<br>stakeholder interests.<br>B. allows managers to examine two<br>primary questions.<br>C. involves understanding the nature<br>of stakeholder interests.<br>D. All of the above<br>Question<br>3<br>The<br>instrumental argument says stakeholder management is:<br>A. A more<br>realistic description of how companies really work.<br>B. More<br>effective as a corporate strategy.<br>C. Simply the<br>right thing to do.<br>D. Determined<br>by the amount of stock owned in the firm.<br>Question<br>4<br>Interactions<br>between business and society occur:<br>A. Within a<br>finite natural ecosystem.<br>B. Only<br>during an environmental crisis.<br>C. When<br>business employees and the community are of similar cultural backgrounds.<br>D. When<br>legislation is passed requiring interaction.<br>Question<br>5<br>Customers<br>can exercise economic stakeholder power by:<br>A. Voting on<br>a proposed merger for the company and a competitor.<br>B. Boycotting<br>products if they believe the goods are too expensive.<br>C. Attending<br>the company\u00e2\u20ac\u2122s annual meeting.<br>D. Applying for a job with the company.<br>Question<br>6<br>Which<br>of the following is not considered to be a nonmarket stakeholder?<br>A. Government agencies.<br>B. Creditors.<br>C. Activist groups.<br>D. Non-governmental organizations.<br>Question<br>7<br>The<br>phenomenon of a person or group holding multiple stakeholder duties is referred<br>to as:<br>A. Role sets.<br>B. Primary<br>Stakeholder(s).<br>C. Ownership<br>Theory.<br>D. None of<br>the above.<br>Question<br>8<br>When<br>something stands out from a background, is seen as important, or draws<br>attention it is:<br>A. Urgent.<br>B. Salient.<br>C. Powerful.<br>D.<br>Legitimate.<br>Question<br>9<br>The<br>five types of stakeholders\u00e2\u20ac\u2122 power recognized by most experts are:<br>A. Voting,<br>economic, political, legal, and informational power.<br>B. Social,<br>legal, environmental, economic, and political power.<br>C. Social,<br>regulatory, voting, governance, and media power.<br>D. Economic,<br>media, legal, stockholder, and political power.<br>Question<br>10<br>A<br>number of European countries require public companies to include employee<br>members on their boards of directors, so:<br>A. The<br>employees are available to answer questions.<br>B. Management<br>does not have to attend the meetings.<br>C. That their<br>interests will be explicitly represented.<br>D. They have<br>more power than any other stakeholder.<br>Question<br>11<br>A<br>firm subscribing to the ownership theory of the firm would mainly be concerned<br>with providing value for its:<br>A.<br>Shareholders.<br>B. Customers.<br>C. Board of<br>Directors.<br>D. Community.<br>Question<br>12<br>When<br>a community group sues a company for health effects caused by the unsafe<br>disposal of toxic chemicals, this is an exercise of a stakeholder\u00e2\u20ac\u2122s:<br>A. Legal<br>power.<br>B. Voting<br>power.<br>C. Economic<br>power.<br>D. Political<br>power.<br>Question<br>13<br>Which<br>one of the following is considered to be a nonmarket stakeholder of business?<br>A. Customers.<br>B. Media.<br>C. Creditors.<br>D.<br>Stockholders.<br>Question<br>14<br>All<br>of the following are external stakeholders of the firm except:<br>A. Managers.<br>B. Customers.<br>C. Stockholders.<br>D. Suppliers.<br>Question<br>15<br>Departments,<br>or offices, within an organization that reach across the dividing line that<br>separates the company from groups and people in society are:<br>A. Inter-departmental divisions.<br>B.<br>Geographical location areas.<br>C.<br>Boundary-spanning departments.<br>D.<br>Organizational maps.<\/p>\n\n\n\n<p><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-ast-global-color-6-color\"><strong>The Correct Answer and Explanation is :<\/strong><\/mark><\/p>\n\n\n\n<p>Here are the correct answers and explanations for each question:<\/p>\n\n\n\n<p><strong>Question 1: Which argument says that stakeholder management realistically depicts how companies really work?<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Answer: A. Descriptive argument<\/strong><\/li>\n\n\n\n<li><strong>Explanation:<\/strong> The <strong>descriptive argument<\/strong> states that stakeholder management provides a more accurate reflection of how companies function in reality. Companies often deal with a variety of stakeholders whose interests, needs, and expectations influence business decisions, and the descriptive argument highlights this as a realistic depiction of corporate behavior.<\/li>\n<\/ul>\n\n\n\n<p><strong>Question 2: A stakeholder analysis:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Answer: D. All of the above<\/strong><\/li>\n\n\n\n<li><strong>Explanation:<\/strong> A stakeholder analysis is a tool used to understand and manage stakeholder interests. It involves creating equality among stakeholder interests (A), allowing managers to examine primary questions about the importance and power of stakeholders (B), and understanding the nature of these interests (C).<\/li>\n<\/ul>\n\n\n\n<p><strong>Question 3: The instrumental argument says stakeholder management is:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Answer: B. More effective as a corporate strategy<\/strong><\/li>\n\n\n\n<li><strong>Explanation:<\/strong> The <strong>instrumental argument<\/strong> focuses on the idea that managing stakeholders effectively leads to better financial performance and corporate success. It suggests that considering stakeholder interests can enhance the company\u2019s long-term profitability and competitive advantage.<\/li>\n<\/ul>\n\n\n\n<p><strong>Question 4: Interactions between business and society occur:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Answer: A. Within a finite natural ecosystem<\/strong><\/li>\n\n\n\n<li><strong>Explanation:<\/strong> Business and society interact within the larger context of a natural ecosystem. These interactions include the impact of business activities on the environment, the natural resources used, and the social consequences of those activities.<\/li>\n<\/ul>\n\n\n\n<p><strong>Question 5: Customers can exercise economic stakeholder power by:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Answer: B. Boycotting products if they believe the goods are too expensive<\/strong><\/li>\n\n\n\n<li><strong>Explanation:<\/strong> Economic stakeholder power is the ability to affect a company\u2019s profitability. Customers can exercise this power by refusing to purchase goods, such as through boycotts, especially if they perceive prices as unfair or if a company is not meeting their needs.<\/li>\n<\/ul>\n\n\n\n<p><strong>Question 6: Which of the following is not considered to be a nonmarket stakeholder?<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Answer: B. Creditors<\/strong><\/li>\n\n\n\n<li><strong>Explanation:<\/strong> <strong>Nonmarket stakeholders<\/strong> are those groups or individuals who do not directly engage in market transactions but still influence or are influenced by business activities, such as government agencies (A), activist groups (C), and NGOs (D). <strong>Creditors<\/strong>, on the other hand, are market stakeholders because they directly engage in financial transactions.<\/li>\n<\/ul>\n\n\n\n<p><strong>Question 7: The phenomenon of a person or group holding multiple stakeholder duties is referred to as:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Answer: A. Role sets<\/strong><\/li>\n\n\n\n<li><strong>Explanation:<\/strong> <strong>Role sets<\/strong> refer to situations where a person or group has multiple responsibilities to different stakeholders. For example, a manager may be responsible to both shareholders and employees.<\/li>\n<\/ul>\n\n\n\n<p><strong>Question 8: When something stands out from a background, is seen as important, or draws attention it is:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Answer: B. Salient<\/strong><\/li>\n\n\n\n<li><strong>Explanation:<\/strong> <strong>Salience<\/strong> refers to the degree to which a stakeholder or issue demands attention. An issue is considered salient if it stands out and is perceived as important.<\/li>\n<\/ul>\n\n\n\n<p><strong>Question 9: The five types of stakeholders\u2019 power recognized by most experts are:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Answer: A. Voting, economic, political, legal, and informational power<\/strong><\/li>\n\n\n\n<li><strong>Explanation:<\/strong> These five powers are commonly recognized as ways stakeholders can influence businesses. Voting power refers to the ability to vote on business decisions; economic power comes from purchasing or investing; political power involves influencing policy; legal power includes the ability to initiate lawsuits; and informational power refers to access to valuable knowledge.<\/li>\n<\/ul>\n\n\n\n<p><strong>Question 10: A number of European countries require public companies to include employee members on their boards of directors, so:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Answer: C. That their interests will be explicitly represented<\/strong><\/li>\n\n\n\n<li><strong>Explanation:<\/strong> Including employees on boards of directors ensures that employee interests are represented in corporate governance. This practice aligns with the stakeholder theory that companies should consider the interests of all stakeholders, not just shareholders.<\/li>\n<\/ul>\n\n\n\n<p><strong>Question 11: A firm subscribing to the ownership theory of the firm would mainly be concerned with providing value for its:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Answer: A. Shareholders<\/strong><\/li>\n\n\n\n<li><strong>Explanation:<\/strong> <strong>Ownership theory<\/strong> asserts that the primary responsibility of a firm is to maximize value for its shareholders. This theory places shareholders at the center of corporate decision-making.<\/li>\n<\/ul>\n\n\n\n<p><strong>Question 12: When a community group sues a company for health effects caused by the unsafe disposal of toxic chemicals, this is an exercise of a stakeholder\u2019s:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Answer: A. Legal power<\/strong><\/li>\n\n\n\n<li><strong>Explanation:<\/strong> <strong>Legal power<\/strong> refers to a stakeholder\u2019s ability to take legal action against a company. In this case, the community group is exercising its legal power to hold the company accountable.<\/li>\n<\/ul>\n\n\n\n<p><strong>Question 13: Which one of the following is considered to be a nonmarket stakeholder of business?<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Answer: B. Media<\/strong><\/li>\n\n\n\n<li><strong>Explanation:<\/strong> The <strong>media<\/strong> is a nonmarket stakeholder because it can influence public opinion, company reputation, and regulatory decisions, even though it does not engage in direct market transactions with the company.<\/li>\n<\/ul>\n\n\n\n<p><strong>Question 14: All of the following are external stakeholders of the firm except:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Answer: A. Managers<\/strong><\/li>\n\n\n\n<li><strong>Explanation:<\/strong> <strong>Managers<\/strong> are considered internal stakeholders, as they are part of the organization. External stakeholders include customers, stockholders, and suppliers.<\/li>\n<\/ul>\n\n\n\n<p><strong>Question 15: Departments, or offices, within an organization that reach across the dividing line that separates the company from groups and people in society are:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Answer: C. Boundary-spanning departments<\/strong><\/li>\n\n\n\n<li><strong>Explanation:<\/strong> <strong>Boundary-spanning departments<\/strong> are those that bridge the gap between the organization and external groups, such as public relations or government affairs.<\/li>\n<\/ul>\n\n\n\n<p>These questions cover key concepts related to stakeholder theory and corporate governance, emphasizing how companies engage with their stakeholders and how different stakeholders can influence corporate strategies.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Which argument says that stakeholder management realistically depicts how companies really work?A. Descriptive argumentB. Instrumental argumentC. Normative argumentD. Fiduciary argumentQuestion2Astakeholder analysis:A. creates equality among allstakeholder interests.B. allows managers to examine twoprimary questions.C. involves understanding the natureof stakeholder interests.D. All of the aboveQuestion3Theinstrumental argument says stakeholder management is:A. A morerealistic description of how companies really work.B. 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