1. Private law provides the legal rules within which firms compete.

Chapter 1

• Private law provides the legal rules within which firms compete.
• True
• False

ANSWER: False

POINTS: 1

DIFFICULTY: Easy

NATIONAL STANDARDS: United States - AACSB: Analytic ACCREDITING STANDARDS: DISC: - AICPA: BB-Legal TOPICS: Introduction: Winning Legally KEYWORDS: Blooms: Knowledge

• Managers can make their own "public" law.
• True
• False

ANSWER: False

POINTS: 1

DIFFICULTY: Easy

NATIONAL STANDARDS: United States - AACSB: Analytic ACCREDITING STANDARDS: DISC: - AICPA: BB-Legal

TOPICS: 1-2 Law and Public Policy

KEYWORDS: Blooms: Knowledge

• Insurance policies may help firms manage risk.
• True
• False

ANSWER: True

POINTS: 1

DIFFICULTY: Moderate

NATIONAL STANDARDS: United States - AACSB: Analytic ACCREDITING STANDARDS: DISC: - AICPA: BB-Legal TOPICS: Introduction: Winning Legally KEYWORDS: Blooms: Comprehension

• Researchers have determined that Fortune 500 firms convicted of illegal conduct earned significantly lower returns on

assets than firms that had not been convicted of wrongdoing.

• True
• False

ANSWER: True

POINTS: 1

DIFFICULTY: Moderate

NATIONAL STANDARDS: United States - BUSPROG: - ANALYTIC ACCREDITING STANDARDS: DISC: - AICPA: BB-Legal

TOPICS: 1-1 Systems Approach to Business and Society

KEYWORDS: Blooms: Comprehension

(Managers and the Legal Environment Strategies for the 21st Century, 8e Constance Bagley) ( Edition 2023-24, , ) 1 / 4

• Lobbying legislators is one method by which managers can help shape the environment in which they do business.
• True
• False

ANSWER: True

POINTS: 1

DIFFICULTY: Easy

NATIONAL STANDARDS: United States - BUSPROG: - ANALYTIC ACCREDITING STANDARDS: DISC: - AICPA: BB-Legal

TOPICS: 1-1 Systems Approach to Business and Society

KEYWORDS: Blooms: Knowledge

• Laws enacted in response to corporate misdeeds often impose fewer restrictions and costs on business than would have

been imposed had firms as a whole acted more responsibly at the outset.

• True
• False

ANSWER: False

POINTS: 1

DIFFICULTY: Moderate

NATIONAL STANDARDS: United States - BUSPROG: - ANALYTIC ACCREDITING STANDARDS: DISC: - AICPA: BB-Legal

TOPICS: 1-1 Systems Approach to Business and Society

KEYWORDS: Blooms: Application

• Promoting economic growth is one of the primary public policy objectives of laws and regulations applicable to

business.

• True
• False

ANSWER: True

POINTS: 1

DIFFICULTY: Moderate

NATIONAL STANDARDS: United States - BUSPROG: - ANALYTIC ACCREDITING STANDARDS: DISC: - AICPA: BB-Legal

TOPICS: 1-2 Law and Public Policy

KEYWORDS: Blooms: Comprehension

• Worker protection is one major public policy concern underlying U.S. business law.
• True
• False

ANSWER: True

POINTS: 1

DIFFICULTY: Easy

NATIONAL STANDARDS: United States - BUSPROG: - ANALYTIC ACCREDITING STANDARDS: DISC: - AICPA: BB-Legal

TOPICS: 1-2 Law and Public Policy

KEYWORDS: Blooms: Comprehension

• / 4

• A firm's illegal conduct has no bearing on the firm's competitive advantage because it does not necessarily divert funds

form strategic investments or affect its image and reputation with its customers.

• True
• False

ANSWER: False

POINTS: 1

DIFFICULTY: Easy

NATIONAL STANDARDS: United States - BUSPROG: - ANALYTIC ACCREDITING STANDARDS: DISC: - AICPA: BB-Legal TOPICS: 1-1b Effect of Law on the Competitive Environment and the Firm's Resources KEYWORDS: Blooms: Application

• Researchers found a statistically significant inverse relationship between a country's economic prosperity, as measured

by the per capita gross domestic product, and the country's judicial independence.

• True
• False

ANSWER: False

POINTS: 1

DIFFICULTY: Moderate

NATIONAL STANDARDS: United States - BUSPROG: - ANALYTIC ACCREDITING STANDARDS: DISC: - AICPA: BB-Legal TOPICS: Introduction: Winning Legally KEYWORDS: Blooms: Application

• As used in the text, the term "legal astuteness" refers to the ability of a manager to avoid situations making

consultation with legal counsel necessary.

• True
• False

ANSWER: False

POINTS: 1

DIFFICULTY: Moderate

NATIONAL STANDARDS: United States - BUSPROG: - ANALYTIC ACCREDITING STANDARDS: DISC: - AICPA: BB-Legal

TOPICS: 1-3 Legally Astute Manager

KEYWORDS: Blooms: Comprehension

• The entering into of nondisclosure agreements is an unethical practice that should not be tole by a legally astute

manager.

• True
• False

ANSWER: False

POINTS: 1

DIFFICULTY: Moderate

NATIONAL STANDARDS: United States - BUSPROG: - ANALYTIC ACCREDITING STANDARDS: DISC: - AICPA: BB-Legal

TOPICS: 1-3 Legally Astute Manager 3 / 4

KEYWORDS: Blooms: Comprehension

• A legally astute manager would wait as long as possible to consult legal counsel once a problem arises in order to keep

legal fees to a minimum.

• True
• False

ANSWER: False

POINTS: 1

DIFFICULTY: Moderate

NATIONAL STANDARDS: United States - BUSPROG: - ANALYTIC ACCREDITING STANDARDS: DISC: - AICPA: BB-Legal

TOPICS: 1-3 The Legally Astute Manager

KEYWORDS: Blooms: Application

• A legally astute manager understands that legal analysis is often ambiguous.
• True
• False

ANSWER: True

POINTS: 1

DIFFICULTY: Easy

NATIONAL STANDARDS: United States - BUSPROG: - ANALYTIC ACCREDITING STANDARDS: DISC: - AICPA: BB-Legal

TOPICS: 1-3 The Legally Astute Manager

KEYWORDS: Blooms: Comprehension

• Each activity in regard to "law and the value chain" referenced in the text has legal aspects.
• True
• False

ANSWER: True

POINTS: 1

DIFFICULTY: Easy

NATIONAL STANDARDS: United States - AACSB: Analytic ACCREDITING STANDARDS: DISC: - AICPA: BB-Legal

TOPICS: 1-1 The Systems Approach to Business and Society

KEYWORDS: Blooms: Comprehension

• The European Union's center of operations is in Brussels, Belgium.
• True
• False

ANSWER: True

POINTS: 1

DIFFICULTY: Easy

NATIONAL STANDARDS: United States - BUSPROG: - ANALYTIC ACCREDITING STANDARDS: DISC: - AICPA: BB-Legal

TOPICS: Global View

KEYWORDS: Blooms: Knowledge

• / 4