Business Ethics and Stakeholders Quiz

What is a shareholder?

• A person who manages a company

• A person who owns stock in a business

• A person who works for a company

• A person who buys products from a company

Who claimed that "the social responsibility of business is to increase its profits"?

• Adam Smith

• John Maynard Keynes

• Milton Friedman

• Karl Marx

Which theory did Friedman use to justify his views on business responsibility?

• Keynesian economics

• Marxist theory

• Invisible hand theory

• Game theory

According to the Friedman, what might businesses be accused of if they try to promote social objectives?

• Stealing shareholders' money

• Enhancing public image

• Increasing market share

• Reducing competition

Who are considered stakeholders according to the text?

• Only shareholders

• Suppliers, customers, stockholders, management, and the local community

• Only employees

• Only customers

What is a potential long-term effect of a business acting as an ethical egoist?

• Increased short-term profits

• Production of a bad product

• Requirement for a better product

• Decreased consumer demand

What does Kant believe about humans?

• They are primarily economic beings

• They should be treated as means to an end

• They are rational beings

• They are naturally competitive

What is the primary focus of corporate social responsibility according to the text?

• Maximizing shareholder value

• Balancing interests of all stakeholders

• Reducing operational costs

• Expanding market share

What does the text suggest about the relationship between business and consumers?

• It is purely transactional

• It involves ethical considerations

• It is based on competition

• It is irrelevant to corporate success

According to Robert Solomon, what is necessary for any long-term business enterprise?

• High profits

• Sound ethics

• Advanced technology

• Global expansion