The purpose of the right to be forgotten is to:

  1. Increase protection of privacy and personal information.
  2. Protect property rights.
  3. Protect intellectual property.
  4. Prevent software privacy.


Which of these steps has the U.S. recently taken to counter cybercrime?

  1. Setup a system of voluntary cybersecurity standards.
  2. Opened a new center dedicated to managing cyber activities.
  3. Passed sweeping new legislation that required Internet providers to guarantee security.
  4. Both A and B, but not C.


Which of the following statements is not true about shareholders?

  1. They are the legal owners of business corporations.
  2. They own equal shares of company assets.
  3. They are investors in the company.
  4. Managers pay close attention to their needs and interests.


In 2008 and early 2009, share values declined sharply as the global economy fell into a severe

recession. This type of stock market is referred to as a:

  1. Bull market.
  2. Volatile market.
  3. Bear market.
  4. None of the above.


Corporate governance involves the exercise of control over a company’s:

  1. Finance and accounting departments.
  2. Entire corporate direction.
  3. Manufacturing facilities.
  4. Marketing and human resources departments.

The “agency problem” arises when:

  1. Owners manage the company on their own behalf.
  2. There is no separation of ownership and control in a company.
  3. Managers act in their own interest, rather than in the interest of shareholders.
  4. Shareholders act in their own interest, rather than in the interest of the board.


The mission of the Securities and Exchange Commission (SEC) is to:

  1. Protect shareholders’ rights by making sure that stock markets are run fairly.
  2. Protect companies from hostile takeovers.
  3. Ensure that institutional investors do not take control of company management.
  4. Ensure that the federal treasury receives its share of the revenues from stock trading.


Which of the following is not true about institutional investors?

  1. Institutions invest their funds by purchasing shares of stock in corporations.
  2. The proportion of institutional ownership of stock in the U.S. has declined slowly since

the 1960s.

  1. Pension funds and university endowments are examples of institutional investors.
  2. Institutions accounted for 63 percent of the value of all equities owned in the U.S. in



Which of the following is not a legal right of shareholders?

  1. To vote on members for the board of directors.
  2. To vote on major mergers and acquisitions.
  3. To vote on changes in the corporate charter and proposals.
  4. To vote on who will become chief executive officer (CEO).








 Which of the following is a key feature of effective boards of directors?

  1. Hold regular meetings without the CEO present.
  2. Fill all important positions on the board with managers with insider knowledge of the


  1. Combine the duties of the board chairman and the chief executive.
  2. Ensure that no outside members are included on the board.


Consumers have become more dependent on businesses for product quality because:

  1. The complexity of products makes choices complicated for consumers.
  2. Instructions for use or care of product are provided in clear and simple language.
  3. Their technical competence allows them to inspect the products thoroughly.
  4. Competition has forced manufacturers to market lower-quality goods.


Which of the following is not a goal of consumer protection laws?

  1. Encourage competitive pricing.
  2. Facilitate consumers’ getting extended credit when making purchases.
  3. Provide consumers with better information when making purchases.
  4. Protect consumers against possible hazards from products purchased.


Warning consumers about the possible side effects of pharmaceutical drugs is an example of

consumer protection against:

  1. Predatory pricing.
  2. Incomplete information disclosure.
  3. Hazardous products.
  4. Violations of individual privacy.




Advertising that is targeted to particular customers, based on their observed online behavior, is called:

  1. Targeted advertising.
  2. Tracking advertising.
  3. Behavioral advertising.
  4. Online advertising.


The “right to be heard” assures that consumers’ interests will:

  1. Receive full and sympathetic consideration.
  2. Be protected against fraudulent or misleading information.
  3. Be assured satisfactory quality and service at a fair price.
  4. Be given all the facts to make an informed choice.


In the United States, which of the following agencies enforces the laws prohibiting deceptive


  1. Congress.
  2. Consumer Product Safety Commission.
  3. Federal Trade Commission.
  4. Department of Justice.




Which of the following is not a goal of consumer protection laws?

  1. Encourage competitive pricing.
  2. Facilitate consumers’ getting extended credit when making purchases.
  3. Provide consumers with better information when making purchases.
  4. Protect consumers against possible hazards from products purchased.




The major federal consumer protection agencies are authorized by law to:

  1. Intervene directly into the very center of free market activities, if that is considered

necessary to protect consumers.

  1. Substitute government-mandated standards for decision making by private buyers and


  1. Substitute private manufacturing standards for government-mandated standards.
  2. Both A and B, but not C.



Under what legal doctrine does a firm bear legal responsibility for injuries caused by something

it made or sold, whether or not it was negligent or breached a warranty?

  1. A. Strict liability.
  2. Product liability.
  3. Consumer liability.
  4. Supplier liability.


Business depends on the community for:

  1. Education.
  2. Public services.
  3. Transportation systems.
  4. All of the above.


 The term civic engagement describes:

  1. The active involvement of businesses and individuals in improving communities.
  2. A competitive, free market environment.
  3. Strong governmental regulation to control businesses at the municipal level.
  4. A close and collaborative business-government relationship.




As communications improve and people around the world are able to witness the horrors of natural disasters, terrorism, and war, international relief efforts by corporations are becoming:

  1. Less important.
  2. More important.
  3. Obsolete because of social media.
  4. A liability because of negative media.


Another term for corporate giving is corporate:

  1. Welfare.
  2. Goodwill.
  3. Philanthropy.
  4. Citizenship.




 Which of the following statements is true about the relationship between business and the


  1. It is one of mutual interdependence.
  2. Business has more responsibility towards community than the community does towards


  1. Communities possess more social power than businesses do.
  2. All of the above statements are true.



What is one reason that firms partner with communities to increase economic development?

  1. To expand environmental sustainability.
  2. To develop workplace skills.
  3. To control the rate of entrepreneurship.
  4. To avoid paying higher taxes.

Restrictive governments often reduce or eliminate citizen access to the Internet and social

media sites in order to?

  1. Suppress political dissent.
  2. Impose religious or ideological views.
  3. Increase bandwidth for government usage.
  4. A and B, but not C.


Which of these actions have Western nations taken to fight cybercrime?

  1. Protected only the individual’s intellectual property.
  2. Guaranteed only personal information privacy.
  3. Accessed public information strictly for the private good.
  4. Some nations protected personal privacy and others accessed private information for

the public good.


Downloading illegal files, spreading computer viruses, and stealing from online bank accounts

is collectively referred to as:

  1. Hacking.
  2. Software piracy.
  3. Cybercrime.
  4. Internet censorship.


Intellectual property refers to:

  1. Protecting one’s ideas, concepts, and symbolic creations.
  2. Special laws protecting copyrights, patents, and trademarks.
  3. Prohibiting the downloading of commercial software or videogames.
  4. All of the above.






Software piracy is a major problem in which part of the world?

  1. Globally.
  2. North America only.
  3. Asia only.
  4. North America and Asia.




This law tightened regulation on issuers of complex securities, especially those related to

subprime mortgages:

  1. Sarbanes-Oxley Act.
  2. Dodd-Frank Act.
  3. Affordable Care Act.
  4. Securities and Exchange Act.


Social capital is a phrase that refers to all of the following, except:

  1. The goodwill that is engendered by the fabric of social relations.
  2. A close relationship between companies and groups in the community.
  3. The norms and networks that enable collective action.
  4. Funds set aside for company events.


What is the primary goal of a community relations department?

  1. To improve the financial bottom line.
  2. To build relationships with important community groups.
  3. To collaborate with other company teams to create policy.
  4. Both B and C, but not A.






Which of these situations is not a reason for a firm to communicate through the media?

  1. Repairing a damaged image.
  2. Ignoring or downplaying an organizational crisis.
  3. Managing its public relations.
  4. Engaging with multiple stakeholders.


The public has the ability to demand a certain level of performance from a firm through which Organizations with strong positive reputations are generally more successful because they:

  1. Receive fewer opportunities.
  2. Are generally less immune to long-term criticism.
  3. Often get the benefit of the doubt in uncertain circumstances.
  4. Both A and C, but not B.


Which of the following is (are) true regarding a recognizable brand?

  1. Identifies how a company is distinctive from their rivals.
  2. Instills an emotional attachment that creates brand loyalty.
  3. Customers trust its exceptional value.
  4. All of the above.


During crisis management, doing the right thing should include:

  1. Accepting responsibility.
  2. Expressing regret.
  3. Minimizing the seriousness of the problem.
  4. Both A and B, but not C.


A significant business disruption that stimulates extensive news media and social networking

coverage is called a(n):

  1. Explosion.
  2. Crisis management.
  3. Corporate crisis.
  4. Human error.

Brand management often involves conveying what about a product or service?

  1. The solutions provided.
  2. The disadvantages of the product or service.
  3. The expected experience.
  4. Both A and C, but not B.


The way organizational members believe others see the organization is called the corporate:

  1. Identity.
  2. Reputation.
  3. Image.
  4. Perception.


A customer tweeting about a recent bad shopping experience is using which type of media


  1. Paid content
  2. Public service announcement
  3. User-generated content
  4. Event sponsorship