1

Which of the following is the estimated proportion of family businesses in the UK economy? A) B) C) D) 10 % 20 % 50 % 75 %

The nation with largest number of family businesses in the top 200 is: A) B) C) D) Korea USA UK France

One of the key issues in family businesses is: A) B) C) D) Future planning Strategic planning Succession planning Support for planning

Which one of the following is not a characteristic problem in family business management A) B) C) D) Sibling rivalry Nepotism Issuing shares on flotation Launching a new business

Which one of the following is not an advantage of a family business at start-up? A) Credibility Additional capital

B) C) D) Family labour Family advice

Which one of the following is regarded as an advantage of family businesses, especially during business development: A) B) C) D) Additional capital Employee loyalty Close knit network of contacts Family advice and support

Which of the following actions would dilute family control in a family-owned business? A) B) C) D) Increasing the size of the business Increasing non-executive directors Increasing number of shares issued Increasing family board members

Why can venture capital organisations assist family businesses? A) B) C) D) They can inject capital They can review performance They can implement strategic planning They can call on experienced family-business advisers

If a new CEO is brought into a family business, it is advisable that he/she has: A) B) C) D) Family business experience Sectoral experience New firm experience Taxation experience

10

In developing a successful exit strategy, a founder of a family business would not consider: A) B) C) D) Trade sale to another organisation Educating heirs to take over management Bring in non-executive directors to assist succession Abandoning succession planning

The correct answer for each question is indicated by a

1 INCORRECT

Which of the following is the estimated proportion of family businesses in the UK economy? A)10 %

B)20 %

C)50 %

D)75 %

2 CORRECT

The nation with largest number of family businesses in the top 200 is: A)Korea

B)USA

C)UK

D)France

3 INCORRECT

One of the key issues in family businesses is: A)Future planning Strategic planning

B)

C)Succession planning

D)Support for planning

4 CORRECT

Which one of the following is not a characteristic problem in family business management A)Sibling rivalry

B)Nepotism

C)Issuing shares on flotation

D)Launching a new business

5 INCORRECT

Which one of the following is not an advantage of a family business at start-up? A)Credibility

B)Additional capital

C)Family labour

D)Family advice

6 INCORRECT

Which one of the following is regarded as an advantage of family businesses, especially during business development: A)Additional capital

B)Employee loyalty

C)Close knit network of contacts

D)Family advice and support

7 CORRECT

Which of the following actions would dilute family control in a family-owned business? A)Increasing the size of the business

B)Increasing non-executive directors

C)Increasing number of shares issued

D)Increasing family board members

8 INCORRECT

Why can venture capital organisations assist family businesses? A)They can inject capital

B)They can review performance

C)They can implement strategic planning

D)They can call on experienced family-business advisers

9 INCORRECT

If a new CEO is brought into a family business, it is advisable that he/she has: A)Family business experience

B)Sectoral experience

C)New firm experience

D)Taxation experience

10 INCORRECT

In developing a successful exit strategy, a founder of a family business

would not consider: A)Trade sale to another organisation

B)Educating heirs to take over management

C)Bring in non-executive directors to assist succession

D)Abandoning succession planning

Question 1 What is meant by the phrase CSR?

a) Corporate Social Responsibility b) Company Social Responsibility

c) Corporate Society Responsibility d) Company Society Responsibility

Question 2 What is meant by the phrase 'teleological ethics'?

a) Is used to judge is an action is right, fair and honest. b) An action can only be judged by its consequences. c) Developing the individual personal characteristics. d) The key purpose of ethics is to increase freedom.
Question 3 For Karl Marx, where do our values come from?

a) They are a product of our upbringing and our parents. b) They are a product of the economic system within which we live. c) They are a product of social inequality. d) They are a product of what we are taught at school.
Question 4 What does Milton Friedman believe to be the sole responsibility of business?

a) The only social responsibility of business is to its shareholders. b) Managers should act in ways that balance the interest of society and shareholders. c) The primary responsibility organizations have is to its employees. d) The primary responsibility organizations have is to its stakeholders.
Question 5 What, according to Adam Smith, is the best way to promote collective interest?

a) Through government making decisions about what is in the public interest. b) Through everyone working together to support each other. c) Through everyone working on their own self-interest. d) Through individuals forgoing their personal interest for the good of the collective.
Question 6 Why, according to stakeholder theory, is it in companies' best interests to pay attention to their stakeholders?

a) If firms only act in their own self-interest employees may feel exploited. b) If firms only act in their own self-interest government might put more regulation on them. c) If firms only act in their own self-interest customers might not like the image that the company portray. d) If firms only act in their own self-interest and inflict harm on stakeholders then society might withdraw its support.
Question 7 What is the enlightened self-interest model of CSR?

a) That it is in an organization's own best interest to put itself first rather than its ethics. b) That it is in an organization's best interest to consider what a shareholder would want. c) That it is in an organization's own best interest to act in an ethical way. d) That it is in an organization's own best interest to follow the legislation and abide by the law.
Question 8 What is greenwashing?

a) Transforming products to be more ethical. b) Making a product appear more ethical that it really is. c) Converting the company to green production methods. d) Convincing customers to buy ethically.
Question 9 What is triple bottom line?

a) An accounting tool that looks at the impact on people, planet and profits. b) A management strategy which states all the attention should be on profits. c) An accounting tool that looks at cost, profit and loss. d) A management strategy which focuses on corporate social responsibility.
Question 10 Why do alternative organizations run differently from conventional shareholder led approach?

a) They do not have shareholders.

b) They are run in non-hierarchical ways which aim to provide a positive impact on society rather than to make profit. c) They prioritise corporate social responsibility. d) They aim to give money to charities and good causes.
Submit my answ ers Clear my answ ers

What is meant by the phrase CSR? Your answer: c) Corporate Society Responsibility Correct answer: a) Corporate Social Responsibility Feedback: The phrase CSR stands for Corporate Social Responsibility. It has come to be one of the key concepts as well as Business Ethics and Sustainability. They have different meanings and focus on different aspects of the organization. Page reference: 554 Question 2 What is meant by the phrase 'teleological ethics'? Your answer: c) Developing the individual personal characteristics. Correct answer: b) An action can only be judged by its consequences. Feedback: Teleological ethics derives its title from the Greek word telos meaning end. Therefore it judges the ethics of a decision by the outcome that it achieves. Page reference: 419-421 Question 3 For Karl Marx, where do our values come from? Your answer: d) They are a product of what we are taught at school. Correct answer: b) They are a product of the economic system within which we live. Feedback: For Marx our values and beliefs (which include our beliefs about what is ethical) are part of what he called the superstructure. This superstructure - which includes aspects like education, religion, the mass media, is, according to Marx, a product of the base - ultimately the relations of production. Therefore for Marx the prime driver for what we consider to be ethical is a result of the economic system that we are in - capitalism. Page reference: 550 Question 4

What does Milton Friedman believe to be the sole responsibility of business? Your answer: a) The only social responsibility of business is to its shareholders. Feedback: Milton Friedman offers one of the most controversial perspectives on CSR. He argues that businesses, and particularly their managers, have only one responsibility, and that is to their shareholders. The shareholders own the company and the managers of the organization work for them, and consequently should work in their own best interests;to maximize (within the laws of society) profits. Taking a libertarian view Friedman claims that if everyone works to their best interest then society will be freer and ultimately better. Page reference: 551 Question 5 What, according to Adam Smith, is the best way to promote collective interest? Your answer: c) Through everyone working on their own self-interest. Feedback: Economist Adam Smith, the author of The Wealth of Nations, argued that everyone should act in a way that maximizes their own best interests. This, taking a somewhat narrow reading of utilitarianism, means that everyone works to maximize their own happiness and by doing so overall the level of happiness will improve. Page reference: 4552 Question 6 Why, according to stakeholder theory, is it in companies' best interests to pay attention to their stakeholders? Your answer: b) If firms only act in their own self-interest government might put more regulation on them. Correct answer: d) If firms only act in their own self-interest and inflict harm on stakeholders then society might withdraw its support. Feedback: Stakeholder theory argues that it is important for firms to pay attention to those that have a stake in the organization. It is not only shareholders that are directly (or indirectly) affected by the actions of an organization but numerous others. These stakeholders include employees, suppliers, customers, local residents, the government, and non-people such as the environment. According to some stakeholder theorists firms only have the right to exist and freedom to trade because society gives them the right, and they have the power to remove this right. This can be seen, for instance, when oil companies are refused the right to drill for oil because of government fears of pollution. Page reference: 561 Question 7 What is the enlightened self-interest model of CSR? Your answer:

d) That it is in an organization's own best interest to follow the legislation and abide by the law. Correct answer: c) That it is in an organization's own best interest to act in an ethical way. Feedback: One of the arguments made by supporters of CSR is that done well it does not necessarily harm profits but may in fact increase them. There are many benefits to this; they include attracting better employees, gaining more affluent customers, developing a good long-term reputation. Page reference: 565-566 Question 8 What is greenwashing? Your answer: b) Making a product appear more ethical that it really is. Feedback: Greenwashing is a term used to criticize firms who present their goods or services in more ethical (or environmental) ways that they really are. For instance a firm might claim a product is organic or fair trade when only some of the ingredients are organic or fair trade. They also might present the positive eco-credentials whilst downplaying that it was imported or used sweatshop labour. This accusation is often made to companies that present their positive ethical attributes in the CSR statements whilst not actually acting on them in practice. Page reference: 567-568 Question 9 What is triple bottom line? Your answer: c) An accounting tool that looks at cost, profit and loss. Correct answer: a) An accounting tool that looks at the impact on people, planet and profits. Feedback: Over recent years a number of attempts to calculate the social and environmental impacts of businesses have arisen. One such approach is triple bottom line. This approach extends the 'bottom line' focus on profits to wider concerns about the environment and people. Page reference: 569 Question 10 Why do alternative organizations run differently from conventional shareholder led approach? Your answer: d) They aim to give money to charities and good causes. Correct answer: b) They are run in non-hierarchical ways which aim to provide a positive impact on society rather than to make profit. Feedback: Employee run cooperatives are often driven by a social purpose rather than simply trying to make money for shareholders or profit for its own sake. This not only impacts their organizational purpose but also the way that they run themselves. For instance they are often committed to being

run in a non-hierarchical manner, stressing the importance of consensus-based decision making. Some also pay everyone the same wage regardless of position in the organization. They often seek to offer goods or services that they feel have a benefit to society rather than simply for the purposes of making money.

What does and Ethical Foundation for an organisation embody

The basic principles which govern the external and internal relations of the organisation The structure, operational and conduct of the activities of the organisation Neither of the above

Who does what The extent to which managers should attempt to change the underlying beliefs and values of individual followers What we do next None of the above All of the above

A ________ _________ sets out the purpose and general direction for the organisation?

Mission statement Vision Purpose statement Profit statement All of the above None of the above

What is the purpose of a balanced scorecard?

To combine a range of qualitative and quantitative indicators of performance To relate business performance to customer satisfaction To measure contribution of people to business growth To relate business performance to financial measures All of the above None of the above

Who are organisational stakeholders?

Providers of finance Customers Government Community Employees All of the above

Which legislation relates to the concept of business ethics?

Freedom of Information Act Building regulations Food Act All of these

What does and Ethical Foundation for an organisation embody?

Your Answer: The basic principles which govern the external and internal relations of the organisation

2.

What does the importance of ethical behaviour, integrity and trust call into question? Your Answer: The extent to which managers should attempt to change the underlying beliefs and values of individual followers

3.

A ________ _________ sets out the purpose and general direction for the organisation? Your Answer: Mission statement

4.

Which of the following would most effectively act as the primary objective of a business organisation? Your Answer: All of the above Correct Answer: To make a profit

5.

What is the purpose of a balanced scorecard? Your Answer: To relate business performance to financial measures Correct Answer: To combine

a range of qualitative and quantitative indicators of performance

6.

Which of the following does the term Corporate Social Responsibility relate to? Your Answer: Community investment Correct Answer: All of the above

7.

Who are organisational stakeholders? Your Answer: All of the above

8.

What is Ethics to do with? Your Answer: Right and wrong

9.

Which of the following is an example of an area where business ethics apply? Your Answer: In the personal life of staff Correct Answer: Conduct of international operations

10.

Which legislation relates to the concept of business ethics? Your Answer: All of these Correct Answer: Freedom of Information

Act