Which of the following best sums up Freeman’s opinion of shareholder capitalism?

1. Which of the following best sums up Freeman’s opinion of shareholder capitalism? Choose the BEST answer.

• Connecting corporations with making money was a mistake from the beginning.
• The basic assumptions are wrong and it leads to bad thinking.
• While it was well-suited to the manufacturing economy of the 1970’s, it doesn’t make sense today.

2. Suppose I want to fix the problem of high turnover at my company. What does Meadows say I should look for?  Choose the BEST answer.

The solution to the problem element.

Leverage points where I can intervene.

The problem element.

The toxic workplace culture that is causing people to leave.

3. Friedman has three reasons for thinking that managers’ only goal should be to maximize profits. Which of the following is NOT one of them?

• If they have more than one goal, it will be confusing, and prevent them from maximizing profits.
• Maximizing profits is what managers are good at.
• Business needs to be purely economics, and other values undermine that purity.
• It is wrong to force shareholders to contribute to causes that they don’t share.

4. Which of the following BEST captures the relationship between Wells Fargo’s code of conduct and the behavior of its employees during the fake accounts era?

• The code of conduct was so vague that it is impossible to say whether employees were breaking it.
• The code of conduct codified Wells Fargo’s aggressive sales culture, proclaiming that “greed is good” so long as you don’t get caught.
• The code of conduct expressly prohibited the common business practices employees were using to meet the unrealistic targets.

5. Suppose you own a house. What does Milton Friedman say about your property rights vis a vis the rights of someone who owns a plane and wants to fly over your house?

• Group of answer choices
• The airplane owner has the right to fly over your house.
•  It depends on how noisy the airplanes are and how high the person flies.
•  Property rights in this case have to be determined by society.
•  You have the right to deny someone the right to fly over your house.

6． Systems consist of three things.  Which of the following is NOT one of them?

• Group of answer choices
• Benefits/burdens..
•  A function or purpose.
•  Elements.
•  Interconnections.

7. What slogan is connected with Sharon Allen’s conception of Return on Ethics?

• Group of answer choices
• Force and fraud are wrong.
•  Ethics and profit are best pursued in moderation.
•  WWBD (What Would Beyoncé Do)
•  Doing well begins with doing right.

8. The environment is not a living entity (think mountains and swamps). Can it be a stakeholder?

• Group of answer choices
• No: only living things or things made of living things can be stakeholders.
•  Yes: something doesn’t have to be alive to be a stakeholder.

9. How does Ferrell define an ethical business culture?

• Group of answer choices
• A culture where there is effective leadership.
•  A culture that creates shared values and norms within a business and supports making ethical decisions.
•  A culture where the business is profitable because employees are productive.
•  A culture where people are always polite and courteous, even when a deadline is fast approaching.

10. Which of the following is NOT something that classical liberals advocate?

• Group of answer choices
• Rules that prevent fraud.
•  Consistent and clear rules.
•  Rules that prevent people from having arbitrary power over others.
•  Rules that prevent force.
•  Clear procedures for what to do when someone breaks the rules.

11. Which of the following is NOT one the most important qualities of Google’s employees?

Group of answer choices

Being willing to speak up and lead.

Possessing insights into others.

Being a good coach.

Being a good problem solver.

12. Why does Freeman think people start businesses?

Group of answer choices

To improve lives.

To earn money.

All of these answers are correct.

13. In the immediate aftermath of the Wells Fargo fake accounts scandal, who was fired? Choose the BEST answer.

Group of answer choices

Over 5000 employees (mostly low level).

No one.

100 managers.

Over 5000 employees (including 2000 managers and 1 executive).

Over 3000 employees (all levels).

14. Which of the following is NOT one of the connections between an ethical culture and profits, discussed by Ferrell?

Group of answer choices

Employee commitment and trust.

Customer satisfaction and trust.

Supplier relationships and trust.

Investor loyalty and trust.

15. Suppose the government was actively investigating Wells Fargo. In which quadrant of this Power-Interest grid would the government belong? (Wells Fargo is constructing it.)

Group of answer choices  X

Y

W

Z

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18. In the history of American capitalism, have corporations always had the goal of maximizing profits for shareholders? Choose the BEST answer.

Group of answer choices  With a few notable exceptions, maximizing profits has been the only goal for corporations in America. It was different in Europe.

No, because it used to be the case that corporations had to prove to the state legislature that they’d promote the public good to be allowed to operate.

19. Suppose I think that the only problem with what Wells Fargo did with their fake accounts was that they got caught. Which theorist(s) would agree with me?

Group of answer choices

Neither Friedman nor Freeman.

Both Friedman and Freeman.

Milton Friedman.

Edward Freeman.

20. Suppose I think that Starbucks’s policy of offering healthcare for employees working at least 20 hours a week is good because I think companies have special obligations to protect their workers. Which theorist(s) would agree with me?

Group of answer choices

Edward Freeman.

Neither Friedman nor Freeman.

Milton Friedman.

Both Friedman and Freeman.