2-1. The concept that proposes private corporations have responsibilities to society that extend beyond making a profit is known as
A. flexible responsibility.
B. social responsibility.
C. social flexibility.
D. managerial responsibility.
E. profit maximization.
2-2. Which one of the following is not one of the arguments against social responsibility as used by economist Milton Friedman?
A. Spending money for social responsibility is spending the stockholder’s money for a general social interest.
B. Businesses can actually do very little in terms of social responsibility.
C. Spending money on social responsibility is acting from motives other than economic and may, in the long run, cause harm to the very society the firm is trying to help.
D. There is one and only one social responsibility of business—to use its resources and engage in activities designed to increase its profits so long as it stays within the rules of the game.
E. Through taking on the burden of social costs, the organization becomes less efficient, causing price increases or postponement of growth.
2-3. Who said that the social responsibility of business is a “fundamentally subversive doctrine” and that the one social responsibility of business is “to use its resources and engage in activities designed to increase its profits so long as it stays within the rules of the game…”?
A. Adam Smith
B. Edward Freeman
C. Archie Carroll
D. William C. Norris
E. Milton Friedman
2-4. Economist Milton Friedman has argued that a business’s only responsibility is to
A. maximize profits and stay within the rules of the game.
B. sustain its market share.
C. promote the welfare of society.
D. satisfy its employees.
E. satisfy its customers.
2-5. According to Archie Carroll, the responsibility that management of a business organization has to produce goods and services of value to society so that the firm may repay its creditors and stockholders is called
A. legal responsibilities.
B. ethical responsibilities.
C. economic responsibilities.
D. financial responsibilities.
E. discretionary responsibilities.
2-6. According to Archie Carroll, the responsibilities defined by government in laws for management to obey are
A. legal responsibilities.
B. ethical responsibilities.
C. financial responsibilities.
D. economic responsibilities.
E. discretionary responsibilities.
2-7. According to Archie Carroll, the responsibilities that management of a business organization assumes which are purely voluntary obligations are
A. legal responsibilities.
B. ethical responsibilities.
C. financial responsibilities.
D. economic responsibilities.
E. discretionary responsibilities.
2-8. The term “social responsibility,” according to Archie Carroll, can be viewed as a combination of an
A. organization’s ethical and discretionary responsibilities.
B. organization’s legal and ethical responsibilities.
C. organization’s economic and ethical responsibilities.
D. organization’s financial and economic responsibilities.
E. organization’s legal and discretionary responsibilities.
2-9. Archie Carroll’s four responsibilities listed in order of priority are
A. legal, economic, ethical, and discretionary.
B. legal, ethical, discretionary, and economic.
C. economic, legal, ethical, and discretionary.
D. economic, ethical, discretionary, and legal.
E. ethical, economic, legal, and discretionary.
2-10. Society generally expects firms to work with employees and the company to plan for layoffs. This is an example of which of Archie Carroll’s responsibilities?
A. economic
B. legal
C. justice
D. ethical
E. discretionary