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Name Chapter 03 Business Power
Description Questions which Blackboard's assessment component is incapable of supporting are not
included in the export.
Instructions

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Question 1 True/False

Question Business has little power in which to change U.S. society.
Answer True
False
Correct Feedback correct
Incorrect Feedback incorrect
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Question The strength to act or to compel another person to act is called power.
Answer True
False
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Question Power is used in U.S. society to force change.
Answer True
False
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Question Power is sometimes used in U.S. society to prevent change.
Answer True
False
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Question Few societies have mechanisms to control power.
Answer True
False
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Question The force behind a company's actions is called its business power.
Answer True
False
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Question The broad agreement that permits a business to work in and with the
society in which it is located is called a social contract.
Answer True
False
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Question Society gives businesses the power to use the resources of the society
and convert these into goods and services that are desirable to society.
Answer True
False
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Question A social contract between business and society gives this relationship
a moral basis for its operation.
Answer True
False
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Question When companies violate society's values, they breach the social
contract that exists between these companies and society.
Answer True
False
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Question On a deep level, corporate power creates many indirect effects on the
society in which it operates.
Answer True
False
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Question The pluralist theory of business power is based on the dominance
theory of the BGS relationship.
Answer True
False
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Question The pluralist theory of business power assumes that business power is
excessive in society.
Answer True
False

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Question Karl Marx believed that business power could be harnessed to benefit
society largely through the market forces in the society.
Answer True
False
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Question The pluralist theory of business power is the basis of the countervailing
forces model of the BGS relationship.
Answer True
False
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Question Increases in business mergers are caused by changes in the economic
environment of the society that create incentives to combine businesses.
Answer True
False
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Question Because of the trend toward global production today, the number of
domestic firms and the scale of their activity have grown.
Answer True
False
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Question The power of the largest corporations exceeds the power of
uncontrollable competitive forces to maintain their dominance.

Answer True
False
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Question The elite dominance theory of business power assumes that a small
number of people act together in democratic ways to control society.
Answer True
False
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Question C. Wright Mills believed strongly that the U.S. was a true democracy.
Answer True
False
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Question Thomas Dye believed that a small number of people in a society
constitute a national institutional elite who rule the vast majority of the society.
Answer True
False
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Question In a pluralistic society, business interests override the interests of the
other institutions in the society.
Answer True
False
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Question The U.S. Constitution discourages pluralism.
Answer True
False
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Question Governments and laws regulate business activities and decide what
behavior is "legitimate" in society.
Answer True
False
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Question In terms of social interest groups in U.S. society, the constitution has
been the great counterweight to business power.
Answer True
False
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Question 26 Multiple Choice

Question The force to act or to compel another person or entity to act is called:
Answer Power.
Legitimacy.
The doctrine of natural rights.
Pluralism.
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Question This exists on a wide spectrum ranging from coercion at one extreme
to weak influence at the other.
Answer The doctrine of natural rights.
Legitimacy.
Power.

Pluralism.
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Question What do corporations breach in exercising "power beyond right", when
they endanger the public or act illegally?
Answer Legitimacy.
Governments and laws.
Social interest groups.
Social contract.
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Question The basic origin of _____ is a grant of authority from society to convert
resources efficiently into needed goods and services.
Answer Pluralism.
Economic power.
Business power.
Social contract.
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Question The force behind a company's actions is called:
Answer Pluralism.
Economic power.
Business power.
Social contract.
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Question The broad agreement that permits a business to have a working
relationship with the society in which it operates is:
Answer Pluralism.
Economic power.

A social contract.
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Question The rightful use of business power is called:
Answer Legitimacy.
Pluralism.
Elite power.
Environmental power.
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Question In terms of levels of corporate power, on which of the following levels is
business power the direct cause of visible, immediate changes, both great and
small?
Answer Deep level.
Multiple levels.
Mid level.
Surface level.
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Question On which of the following levels does corporate power shape society
over time through the aggregate changes of industrial growth?
Answer Deep level.
Multiple levels.
Mid level.
Surface level.
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Question At the surface level, the operation of a corporation may immediately
and visibly affect its stakeholders. Identify the business power exercised.
Answer

Technological power.
Social power.
Legal power.
Economic power.
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Question The ability of a company to influence society by its control over
resources is called:
Answer Legal power.
Economic power.
Social power.
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Question Identify the business power due to which industrialization engenders
values that radiate freedom and erode authoritarian regimes on a deeper level
around the world.
Answer Technological power.
Political power.
Legal power.
Economic power.
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Question The ability of a company to influence the consequences of physical
innovations in society is called:
Answer Social power.
Pluralism.
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Question In 1914, Henry Ford used assembly lines to produce Model T cars.
This is an example of:
Pluralism.
Legal power.
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Question The ability of a business to influence government is called:
Answer Political power.
Social power.
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Question When businesses hire lobbyists to influence legislation, they are
attempting to use:
Answer Political power.
Social power.
Cultural power.
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Question The ability of businesses to influence the laws of the society in which
they operate is called:
Legal power.
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Question The ability of businesses to shape the values and habits of people in
society is called:
Answer Cultural power.
Economic power.
Legal power.
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Question The impact of a company on nature is called its:
Legal power.
Social power.
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Question If a production plant of a business pollutes the air that we breathe, it is
an example of the plant's:
Legal power.
Legitimacy.
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Question The idea that businesses have excessive power to influence U.S.
society is based on which theory of business power?
Answer Dominance theory.
Doctrine of natural rights.
Pluralist theory.
Market capitalism theory.
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Question The dominance model of the BGS relationship is the basis for which
theory of business power?
Answer Pluralist theory.
Dominance theory.
Market capitalism theory.
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Question This business power theory is inadequately checked and, therefore,
excessive.
Answer Market capitalism theory.
Pluralist theory.
Dominance theory.
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Question This business power theory is counterbalanced and restricted and,
therefore, not excessive.
Answer Market capitalism theory.
Pluralist theory.
Dominance theory.
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Question Which theory of business power asserts that other institutions besides
businesses such as markets, government and advocacy groups also have
power?
Elite dominance theory.
Pluralist theory.
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Question Which theory of business power is the basis for the countervailing
forces model in the BGS relationship?
Pluralist theory.
Elite dominance theory.
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Question Which theory of business power postulates that a small number of
people in society act together in undemocratic ways to influence society?
Answer Elite dominance theory.
Pluralist theory.
Social contract theory.
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Question The theory of power elite is based on the writings of:
Answer Immanuel Kant.
C. Wright Mills.
Bill Gates.
Alexander Hamilton.
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Question The theory of the existence of _____ is associated with the American
sociologist, C. Wright Mills.
Answer Dominance.
Natural rights.
Pluralism.
Power elite.
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Question The idea of a "national institutional elite" is based on the writings of:
Answer Bill Gates.
Immanuel Kant.
Thomas Dye.
Alexander Hamilton.
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Question A society that has multiple groups that exercise power over the
members of society is called a(n):
Answer Socialist society.
Communistic society.
Pluralistic society.
Power elite society.
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Question The idea that all people were created equal and entitled to the same
opportunities and protections offered by the society in which they live is called
the:
Answer Doctrine of natural rights.
Pluralistic theory.
Power elite theory.
Dominance theory.
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Question All of the following are true of the theory of pluralism EXCEPT:
Answer American society is infused with democratic values.
Strong forces in a free market society like America limit
business power.
American constitution encourages pluralism.
America has limited range of business interests.
Correct
correct
Feedback
Incorrect

Feedback incorrect
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Question These represent every segment of society and use many methods to
restrain business, including product boycotts and lawsuits.
Answer Governments and laws.
Social values.
Markets and economic stakeholders.
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Question All of the following are the major boundaries on managerial power
EXCEPT:
Answer Governments and laws.
Social values.
Elite dominance.
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Question 61 Fill in the Blank

Question _____ is the strength to act or to compel others to act.
Answer Power
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Question _____ is the force behind a company's ability to change the society in
which it operates.
Answer Business power
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Question _____ is the opposite of the legitimacy of the exercise of power beyond

its rightful use.
Answer Tyranny
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Question The actions of companies that are the direct cause of changes in
society are called the _____ level of business power.
Answer surface
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Question The actions of companies that are the indirect cause of changes in
society are called the _____ level of business power.
Answer deep
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Question _____ are the actions of a business that exercise power over
employees, stockholders and consumers.
Answer Power over individuals
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Question The _____ theory of business power asserts that the power of
business in society is excessive and is not checked adequately.
Answer dominance
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Question The _____ theory of business power asserts that other institutions
besides businesses exercise significant power in society.
Answer pluralist

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Question _____ are small groups of people who exert great influence on the
economy and government of the society in which they live.
Answer power elite
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Question A _____ society is one that has multiple institutions through which
power is exercised.
Answer pluralistic society
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Question 71 Essay

Question Discuss what is meant by the concept of power and give two examples
of how power is exercised in a society.
Answer Power is the force or strength to act or to compel another entity to act. In
human society, it is used to organize and control people and materials in
order to achieve individual or collective goals. It exists on a wide
spectrum ranging from coercion at one extreme to weak influence at the
other. Its use in human society creates change. Although power is
sometimes exerted to prevent change, such resistance is itself a force
that alters history. There are many sources of power, including wealth,
position, knowledge, law, arms, status and charisma.
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Question 72 Essay

Question Discuss what is meant by the concept of business power and give two
examples of how this power is exercised in a society.
Answer Business power is the force behind an act by a company, industry or
sector. The greater this force, the more the action creates change or
influences the actions of other entities in society. Its basic origin is a
grant of authority from society to convert resources efficiently into
needed goods and services.
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Question 73 Essay

Question Explain what is meant by the dominance theory of business power and
discuss the type of BGS relationship on which it is based.
Answer The dominance theory holds that business is preeminent in American

society, primarily because of its control of wealth and that its power is
both excessive and inadequately checked. The dominance theory is the
basis of the dominance model of the business-government-society
relationship.
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Question 74 Essay

Question Explain the elite dominance theory of business power and discuss its
roots in the BGS relationship between business and society.
Answer Elite dominance supports the dominance theory through the argument
that there exist a small number of individuals who, by virtue of wealth
and position, control the nation. The members of these elite are alleged
to act in concert and in undemocratic ways. The modern impetus for the
theory of elite dominance comes from the sociologist, C. Wright Mills.
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Question 75 Essay

Question Which American sociologist asserted the theory of the power elite and
how was this power supposedly exercised in American society?
Answer The modern impetus for the theory of elite dominance comes from the
sociologist, C. Wright Mills. Mills saw American society as a pyramid of
power and status. At the top was a tiny elite in command of the
economic, political and military domains. Mills was never specific about
its numbers, but said it was small. Just below was a group of lieutenants
who carried out the elite's policies. They included professional managers
of corporations, politicians beholden to the elite for their election and
bureaucrats appointed by the politicians. The large base of the pyramid
was composed of a mass of powerless citizens.
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Question 76 Essay

Question Which sociologist defined the concept of the national institutional elite
and how was their power supposedly exercised in American society?
Answer Thomas R. Dye has tried to identify precisely which individuals constitute
an American elite. Believing that power comes from leadership roles in
corporations, government and other large organizations, he defines a
"national institutional elite" composed of individuals who occupy the top
positions in the institutional structure of American society. These are the
individuals who possess the formal authority to formulate, direct and
manage programs, policies and activities of the major corporate,
governmental, legal, educational, civic and cultural institutions in the
nation.
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Question 77 Essay

Question Explain what is meant by a pluralistic society in terms of power.
Answer A pluralistic society is one having multiple groups and institutions
through which power is diffused. Within such a society no entity or
interest has overriding power and each may check and balance others.
The countervailing forces model illustrates how, in such a society,

business must interact with constraining forces in its environment.
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Question 78 Essay

Question Explain what is meant by the concept of the doctrine of natural rights.
Answer The doctrine of natural rights held that all persons were created equal
and entitled to the same opportunities and protections. In America, laws
apply equally to all. All interests have the right to be heard. To be
legitimate, power must be exercised for the common good.
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Question 79 Essay

Question Explain why the U.S. Constitution encourages pluralism in American
society.
Answer The Constitution encourages pluralism. Its guarantees of rights protect
the freedom of individuals to form associations and freely to express and
pursue interests. Thus, business is challenged by human rights,
environmental and other groups. The Constitution diffuses political
power through the three branches of the federal government and
between the federal and state governments and to the people. This
creates a remarkably open political system.
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Question 80 Essay

Question Explain how social interest groups form boundaries on business power
and give two examples of these boundaries.
Answer Social interest groups represent every segment of society and use many
methods to restrain business, including product boycotts, lawsuits, picket
lines, media campaigns and lobbying for more regulation.
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