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1)   Which of the following represent types of interests?


a)   Advocacy groups


b)   Special interest


c)   Activist groups


d)   All of the above




2)  Which of the following is not an organized interest group that directly impacts the automobile industry?


a) United Auto Workers


b) Trial lawyers


c) American Association of Automobile Manufacturers


d) Mothers Against Drunk Driving




3)   Which of the following is not a primary public institution in the nonmarket environment?


a)   Legislatures


b)   The executive branch


c)   The World Court


d)   Administrative agencies




4)   Which of the following is a powerful force for providing information to officeholders regarding the likely consequences of policy alternative for their constituents and the public more broadly?


a)   United Auto Workers


b)   Newspapers from advocates of some position


c)   Lobbying


d)   None is correct




5)    Which one of the following makes up the Administrative and regulatory agencies arena in which nonmarket issues for the automobile industry are addressed?


a)   Congress


b)   Environmental Protection Agency


c)   European Union


d)   All of the above




6)    Which auto company was targeted by the environmental groups seeking to mobilize the public to support greater fuel economy?


a)   General Motors


b)   Hummer


c)   Toyota


d)   Saturn




7)    Which of the following is NOT a source of nonmarket issues?


a)   Moral concerns


b)   Institutional change


c)   Interest group activity


d)   Crash of the stock market




8)   What is the following new theory called: ‘under which firms could be held liable if their stock prices fell significantly when the firms’ projections of future earnings had been favorable?


a)   Fraud on the market


b)   Fraud on the nonmarket


c)   The common factor


d)   Collective deception




9)   In terms of strategy and nonmarket issue life cycle, Nike found itself reacting to what      rather than shaping the development of the issue?


a)   The government only


b)   Their own culture


c)   Others’ actions


d)   None are correct




10) Nonmarket issue life cycle and strategy ranges from what to what on the continuum of time?


a)   Issue identification; enforcement


b)   Interest group formation; enforcement


c)   Legislation; administration


d)   Issue identification; administration




11) The most effective means of integrating nonmarket strategies and market strategies is      to what?


a)   Consider both strategies


b)   Consider only nonmarket strategies


c)   Consider only market strategies


d)   Consider neither but come up with new strategies




12) ______ is a foundation for market or competitive strategy because it is a source of competitive advantage.


a)   Timing


b)   Lobbying


c)   Positioning


d)   Marketing




13) Nonmarket positioning is influenced by a firm’s


a)   finances.


b)   market strategy.


c)   customers.


d)   competition.




14) What was the primary concern for eBay in its positioning for a certain type of space?


a)   Market


b)   Consumer


c)   Legal


d)   Moral




15) The collection of diverse interests, viewpoints, and preferences of the individuals in society is known as what?


a)   Public individualiality


b)   Common sense


c)   Public sentiment


d)   Public wants and demands




16) BP managed its environment in many ways. One way that it solidified its positioning      relative to the natural environment was to what?


a)   Move away from oil production and distribution of gasoline


b)   Change its symbol and slogan


c)   Join the Green Party


d)   Appoint only environmentalists to its Board of Directors




17) Law-making and rule-making take place in what type of space?


a)   Social


b)   Legal


c)   Political


d)   Commercial




18) What space has Microsoft largely ignored, relying instead on its aggressive approach      to markets?


a)   Legal


b)   Public sentiment


c)   Political


d)   Nonmarket




19) Positioning can also have its perils. Which of the following companies has been lobbied heavily to increase its commitment to its own causes?


a)   Xerox


b)   GM


c)   Microsoft


d)   Starbucks




20) Firms deploy nonmarket capabilities to do what?


a)   Add value


b)   Beat the competition


c)   Create new markets


d)   Try new strategies




21) Which of the following are parts of the framework for the analysis of nonmarket is-      sues?


a)   Screening


b)   Analysis


c)   Choice


d)   All of the above




22) The societal significance perspective of news media coverage assumes the following roles, except:  a)   maintaining democracy


b)   the First Amendment protects the news media in assuming its role in the society


 c)   informing citizens of unjust behavior


d)   protecting the government, the president and the Congress from themselves




23) Using the Audience Interest/Societal Significance continuum, which of the following rates highest on both?


a)   Poverty


b)   Environmental protection


c)   International trade


d)   The economy




24) Which of the following makes an issue more newsworthy?


a)   The degree of urgency


b)   A celebrity being involved with an issue


c)   If the issue contains controversy or conflict


d)   All are correct answers




25) According to well-known journalist Edwin Newman, “What is news on television often depends on _____________?”


a)   what the editor wants covered


b)   where your reporters and cameramen are


c)   what the month is


d)   what you covered last




26)   In terms of an activists’ generic strategy, what is a low-cost method of getting information out to the public that they want to be distributed?


a)   Use the news media


b)   Use television spots


c)   Use nationwide lobbying of legislatures


d)   Go with a lawsuit




27)   Which of the following is not one of Greenpeace’s campaigns?


a)   Ancient rain forests


b)   Climate


c)   Toxins


d)   River dumping in the Amazon




28)   In terms of addressing the activist environment, which of the following is the guideline for engaging in a fight?


a)   Fight all out


b)   Win at any cost


c)   Fight when you are right and can win—but be careful


d)   Fighting never gains an advantage




29)   When confronted with a private nonmarket action, a natural reaction is to be _______, but a better response is to _______the claims and demands the activists make.


a)   Defensive; deny


b)   Defensive; evaluate


c)   Welcoming; accept


d)   Offensive; reject




30)   What was Environmental Defense’s (ED) concern about McDonald’s?


a)   Sourcing supplies from old growth forests


b)   Practice of harvesting old timber


c)   Practice of solid waste disposal


d)   All of the above




31)   All of the following were the threats against OnBank except?


a)   Direct action against the bank


b)   Required regulatory approval


c)   The reporting of lending data by census track


d)   Bringing in a union




32)   Why was Royal Dutch/Shell such a formidable company for Greenpeace to take on?


a)   It is well-regarded in the British Isles and it has a history of fighting all comers


b)   It is the largest corporation in Europe and the third largest in the world


c)   It is the third largest corporation in Europe and the sixth in world


d)   It is regarded as the best oil company in the world and consumers back it in all issues




33)   What was one of Greenpeace’s principal strategies used against Royal Dutch/Shell?


a)   Attracting public attention through high profile, confrontational actions that were covered by Greenpeace photographers and film crews


b)   A lawsuit filed in Wales


c)   Using passive techniques to encourage a boycott of the company


d)   A sit-down strike of all of its gas stations




34)   ______ media coverage can be expected when the issue at the core of the crisis is viewed as important to society and when the potential audience is large.


a)   Lesser


b)   Greater


c)   Biased


d)   Unbiased




35) __________ involves actions by the company or government to deal with the crisis.


a)   Reconciliation


b)   Settlement


c)   Intervention


d)   Postponement




36) Resolution involves turning the crisis into a manageable ________ issue.


a)   operating


b)   tactical


c)   strategic


d)   nonmarket




37) Which of the following is NOT a component of crisis management?


a)   Response


b)   Avoidance


c)   Root cause analysis


d)   All are components




38) Which is the most important component of a crisis management program?


a)   Preparedness


b)   Resolution


c)   Avoidance


d)   Reconciliation




39) The second most important component of a crisis management program is


a)   auditing


b)   preparedness


c)   root cause analysis


d)   budgeting




40) One aspect of an avoidance strategy is


a)   budgeting


b)   auditing


c)   strategizing


d)   confronting




41) Which step of a crisis management program deals with identifying the cause of the      crisis?


a)   Root cause analysis


b)   Pareto analysis


c)   Avoidance analysis


d)   Confrontation analysis




42) On some issues, the benefits from nonmarket action can be obtained through other means, referred to as:


a)   complements  


b)   substitutes


c)   benefits


d)   legalistic




43) In the case of the unitary tax and the location of foreign firms, which of the following represents the concept presented?


a)   Substitutes


b)   The unfairness of taxing foreign companies located in the United States


 c)   The benefits of taxation to foreign businesses


d)   The no-way-out policy




44) When the benefits from supporting a political alternative are concentrated and the benefits from opposing it are widely distributed, the supporters would have:


 a)   stronger incentive to take political action than the opponents


b)   weaker incentive to take political action than the opponents


c)   it is better for them not to take any action


d)   none of the above actions is advisable




45) When the benefits from supporting a political alternative are widely distributed but the benefits for opposing it are concentrated, the opponents would have:


a)   no incentive to undertake political action against it while its supporters have little incentive to work for its adoption


b)   strong incentive to undertake political action against it


c)   a weaker incentive to undertake political action against it


d)   any one of the above actions is reasonable to win




46) Proposition 13, the public referendum in California, is an example of what at work?


a)   Political entrepreneurship


b)   Congressional redistricting


c)   Federal mandates


d)   Failed public policy




47) Nonmarket assets include which of the following?


a)   Reputation of firm


b)   Reputation of top management


c)   Personal relationships with institutional officeholders


d)   All are assets




48) The value chain includes all but which one of the following?


a)   Inbound logistics


b)   Marketing & sales


c)   Suppliers


d)   Operations




49) Nonmarket analysis involves the following activities, EXCEPT which of the following?


a)   Identifying the interests affected by an issue


b)   Analyzing the demand for and the supply of political action


c)   Identifying the institutional arenas in which the issue will be addressed


d)   Analyzing the financial statements of the firm




50) Each of the following is seen as an asset to a firm except:


a)   the firm’s reputation


b)   the firm’s access to institutional actors


c)   the experience of the firm


d)   the stakeholders’ views of the firm




51)   Business grassroots strategy is built on corporate stakeholders as identified by what?


a)   Rent chain


b)   Money


c)   Partisan politics


d)   Median voters




52)   The principal vehicle for creating a majority coalition is from:


a)   Collection of minorities


b)   Large firms


c)   Those without power


d)   Anyone willing to join




53)   Business coalitions are made up of three types except which of the following?


a)   Peak organizations


b)   Industry organizations


c)   Ad hoc coalitions


d)   stakeholder groups




54)   Which of the following peak associations focuses on the concerns of small business?


a)   Small Businesses Inc.


b)   Association of Small Business Concerns


c)   Entrepreneurs and Small Business Organization


d)   National Federation of Independent Business.




55)   Trade associations serve a variety of _____ and ______ functions.


a)   market, corporate


b)   market, nonmarket


c)   corporate, nonmarket


d)   corporate, stakeholder




56)   In Buckley v. Valeo (1976), the Supreme Court ruled what concerning limits on campaign expenditures?


a)   There are definite dollar limits


b)   Any limit threatens the freedoms of speech and association


c)   A limit of $100 million


d)   A partial limit is fine to preserve the First Amendment




57)   Campaign contributions are made for all but which of the following reasons?


a)   Influence legislative voting


b)   Obtain access to present or future officeholders


c)   Affect outcome of elections


d)   Help a CEO with his/her political future




58)   In which of the following venues do managers testify?


a)   Regulatory agencies


b)   Congressional committees


c)   Courts


d)   All are correct




59)   The Hart-Scott-Rodino Antitrust Improvement Act of 1976 requires premerger notifications to the ___ and the ___ of plans to merge.


a)   DOJ; FTC


b)   DOJ; FBI


c)   FTC; FCC


d)   There is no such provision in the law




60) In 2000, what was the number of possible mergers reported under the provisions of the Hart-Scott-Rodino Act?


a)   None because firms do not need to report such information to the government


b)   1,547


c)   2,389


d)   4,926




61) Private antitrust suits appear to be going in which of the following directions?


a)   Increasing substantially


b)   Decreasing substantially


c)   Doubling in numbers year to year


d)   Almost disappearing




62) The Clayton Act has a provision for ____ damages and this provides a _____ incentive to file suits.


a)   quadruple; strong


b)   treble; strong


c)   seven times; strong


d)   only twice; weak




63) If acts are said to be per se illegal, one defense allowed is the defendant did not commit the act and the second is what?


a)   Defendant is irrational


b)   Defendant is unethical


c)   Prosecution is out to get the defendant


d)   The defendant committed the act, but it was not unreasonable to do so




64) Which of the following characteristics is not part of the Structural school of thought regarding the purpose of antitrust policy?


a)   International and global


b)   Government is to protect society from economic power


c)   Competition is the best protector of consumers and economic efficiency


d)   Market is fragile and prone to failure




65) Under the structural or traditional approach, it believed that in concentrated industries collusion is _____________.


a)   unlikely


b)   given


c)   likely


d)   very rare




66) Which of the following statements is a characteristic of the Chicago school of thought pertaining to antitrust laws?


a)   Social and political as well as economic objectives


b)   Markets are resilient enough that market imperfections can be addressed through incentives


c)   Government is to protect society from economic power


d)   Market power derives from both horizontal and vertical arrangements




67) The Congress exerts great influence on the regulatory agencies through which of the following means?


a)   Using its budgetary and oversight authorities


b)   Appointing the regulatory agencies administrators


c)   Using the Office of Management and Budget (OMB)


d)   Using the independent commissions




68) Which of the following is a cause of market imperfection?


a)   Pure competition


b)   Asymmetric information


c)   Government has no intervention in the economy


d)   Complete free trade




69) In the case of a natural monopoly, economic theory recommends that government set the price of goods and services to be:


a)   Equal to total cost of production


b)   Equal to average cost of production


c)   Equal to marginal cost of production


d)   Equal to the competitors’ price




70) Which one of the following activities could be considered a nonpecuniary externality?


a)   Effect of a firm’s new plant on the demand and price of labor


b)   The increase in the oil price after the oil shock of the 1970’s


c)   Generating pollution by driving a car


d)   All the above have nonpecuniary externalities




71) Which of the following is not a public good?


a)   National defense


b)   Radio broadcasting


c)   Bridges and roads


d)   Buying a TV set from the army’s surplus store




72) What term below refers to behavior induced when people do not bear full consequences for their actions?


a)   Moral hazard


b)   Transaction costs


c)   Asymmetric information


d)   Free entry and exit into the market




73) What theory predicts that regulation initially will be found where there are market      imperfections and over time will evolve to serve the interests of the regulated industry?


a)   Interest group


b)   Capture


c)   Flexible


d)   Jurassic




74) Capture theory predicts that regulation will be found where there is/are market ______.


a)   perfection


b)   shifts


c)   imperfections


d)   regularities




75) ______ occurs when one group of customers pays more and another group pays less than the cost of providing their service.


a)   Market imperfection


b)   Free-riding


c)   Moral hazard


d)   Cross-subsidization




76)   The Kyoto Protocol called for country-specific reductions in carbon dioxide emissions by:


a)   2005


b)   2010


c)   2008


d)   2006




77)   Which of the following countries rejected the Kyoto Protocol?


a)   Russia


b)   India


c)   China


d)   Australia




78)   The EPA was established in which decade?


a)   1950’s


b)   1960’s


c)   1970’s


d)   1980’s




79)   How many employees did the EPA employ in 2008?


a)   Over 4,500


b)   Over 9,800


c)   Over 17,000


d)   Over 25,000




80)   The federal government can seek both criminal and civil convictions of polluters from:


a)   firms only


b)   firms, investors and customers


c)   firms and individuals


d)   individuals only




81)   What is the name of the account that was established to clean up toxic waste disposal sites?


a)   Toxic Waste Cleanup Fund


b)   Superfund


c)   SuperiorFund


d)   ToxWasteFund




82)   Two complaints in terms of government’s demands for cleaning up toxic wastes are:


a)   time and cost


b)   litigation costs and new standards for cleanup


c)   litigation costs and retroactive liability


d)   retroactive liability and time




83)   Most of the costs of environmental protection are borne by:


a)   private parties


b)   government


c)   business


d)   all of the above




84)   What is NIMBY?


a)   Not In My Best Year


b)   Not In My Backyard


c)   Not In Money By Years


d)   Not Involved More By Yards




85) A trademark produces what two values?


a)   economic and political


b)   economic and social


c)   economic and public


d)   social and private




86) Contracts are entered into to induce _______, which refers to a change in behavior by a party.


a)   assurances


b)   reliance


c)   common law


d)   exchanges




87) Which two of the following are ex ante concepts?


a)   conditions and statutes


b)   reliance and inducements


c)   duress and unconsionability


d)   duress and contracts




88) Which industry highlighted in your text seems to struggle mightily with contract problems around research findings?


a)   dairy


b)   automobile


c)   record


d)   biotechnology




89) What ex ante approach is based on the principle that more complete contracts can be more efficient?


a)   liquidated damages


b)   duress damages


c)   consequential damages


d)   expectation damages




90) What are torts?


a)   civil rights


b)   civil wrongs


c)   civil damages


d)   private wrong through public statutes




91) All of the following are the basic elements of a tort except:


a)   an injury


b)   an action that causes harm


c)   the breach of duty owed to the injured party


d)   the breach of utilitarian ethics




92) Which of the following requires the balancing of the costs of injuries and the costs of care?


a)   political efficiency


b)   social efficiency


c)   economic efficiency


d)   technological efficiency




93) What is the leading online advertising services firm?


a)   DoubleClick


b)   Ads-are-Us


c)   MonsterBoard


d)   WebDesign




94) What is the stance of most business concerning legislating privacy rules for the Internet?


a)   support strongly


b)   opposed generally


c)   neutral


d)   lobbying for legislative passage




95) What are some of the components of self-regulation?


a)   policies and practices of companies


b)   certification by independent nongovernmental organizations


c)   personal protection by individuals


d)   all are components




96) What describes the European Union’s approach to Internet privacy?


a)   enacted a directive (law) that strongly protected privacy for personally identifiable information


b)   decided to follow the lead of the US and not pass legislation


c)   is considering strong legislation


d)   believes that privacy is an individual matter




97) Confidence in the Internet is a public good, but the provision of that public good is subject to a _________ problem.


a)   network externality


b)   standardization


c)   free-rider


d)   customization




98) Why do online retailers fight tax collection for their items?


a)   it is too much of a bother


b)   they do not want to do the state’s work


c)   it would be prohibitively expensive they contend


d)   it would be too complex




99) According to eBay, what is the key to its success?


a)   hard work


b)   privacy


c)   trust


d)   money




100) eBay’s ______ lives in the shadow of public order.


a)   public ordering


b)   private ordering


c)   flexible ordering


d)   traditional ordering

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