Business, Government, and Society Exam Review
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Questions and Answers

Which company adopted private regulation after being invited by a social regulator?

  • Suncor
  • Unilever
  • Nike
  • Levi Strauss (correct)

    • What factor did Greenpeace emphasize to target Facebook regarding its energy practices?

  • Low regulatory scrutiny
  • Consumer-oriented products (correct)
  • High profit margins
  • Strong employee advocacy

    • Which company is noted for rejecting private regulation and waiting for government intervention?

  • Nike
  • Apple
  • Suncor (correct)
  • Unilever

    • What was a significant reason for Facebook choosing Prineville, Oregon for its new data facility?

    <p>Energy efficiency</p> Signup and view all the answers

    Which company complied with a social regulator without initiating private regulation?

    <p>Apple</p> Signup and view all the answers

    What characteristic made Facebook a 'biggest sinner' in its industry according to Greenpeace?

    <p>History of environmental negligence</p> Signup and view all the answers

    Which aspect could be considered a marginal benefit of voluntary compliance for companies?

    <p>Improved brand reputation</p> Signup and view all the answers

    What is a potential marginal cost associated with voluntary compliance mentioned in the context?

    <p>Loss of profits</p> Signup and view all the answers

    What was the primary purpose of BP's 'Beyond Petroleum' campaign?

    <p>To signal a shift towards renewable energy</p> Signup and view all the answers

    What design change accompanied BP's rebranding during the 'Beyond Petroleum' campaign?

    <p>A sunflower logo named Helios</p> Signup and view all the answers

    Which of the following actions did BP take as part of its stakeholder engagement strategy?

    <p>Acquiring Solarex to lead in solar production</p> Signup and view all the answers

    What is most likely to happen to a company that lacks a sense of purpose?

    <p>It will lose its ability to achieve full potential.</p> Signup and view all the answers

    According to Larry Fink, how should CEOs present their strategic framework to shareholders?

    <p>Annually with an emphasis on long-term value creation.</p> Signup and view all the answers

    What is a characteristic of oil and gas that impacted BP's marketing approach?

    <p>They are considered perfect substitutes.</p> Signup and view all the answers

    How are environmental, social, and governance (ESG) issues interconnected with financial performance?

    <p>They create stakeholder risk that affects profit.</p> Signup and view all the answers

    What potential challenge did BP anticipate that influenced its strategic shift?

    <p>Climate change limiting scalability and pricing</p> Signup and view all the answers

    Which of the following best describes the relationship BP sought to build with governments through its campaign?

    <p>Collaboration on a renewable energy policy</p> Signup and view all the answers

    What type of risk can activists pose to a company's brand?

    <p>Social risk.</p> Signup and view all the answers

    How did BP plan to attract talent as part of their stakeholder engagement?

    <p>By branding as a leader in environmental sustainability</p> Signup and view all the answers

    What is an outcome of stakeholder capitalism according to the content?

    <p>Durable profitability and business survivability.</p> Signup and view all the answers

    What was a significant acquisition BP made during the 'Beyond Petroleum' initiative?

    <p>Acquisition of Arco for oil production</p> Signup and view all the answers

    Which of the following is a potential consequence of regulatory risk?

    <p>Higher compliance costs for companies.</p> Signup and view all the answers

    What can result from a company having an unresponsive brand?

    <p>Loss of consumer trust.</p> Signup and view all the answers

    Which of the following best defines the relationship between profits and purpose?

    <p>They are intrinsically linked and affect company success.</p> Signup and view all the answers

    What does the equality R’(Q) = C’(Q) indicate in the context of profit maximization?

    <p>Marginal revenue equals marginal cost.</p> Signup and view all the answers

    Which of the following correctly represents the derivative of the revenue function R(Q) when revenue is defined as R(Q) = P(Q) x Q?

    <p>R'(Q) = m + 2nQ</p> Signup and view all the answers

    How is the optimal quantity Q* calculated from the equation m + 2nQ = b?

    <p>Q* = (b - m) / 2n</p> Signup and view all the answers

    In the given profit maximization context, what does the variable 'b' represent?

    <p>The intercept of the cost function.</p> Signup and view all the answers

    What is the significance of the slope 'dQ/dt' being zero at Q*?

    <p>It indicates the maximum profit condition.</p> Signup and view all the answers

    If the marginal cost function C’(Q) is represented as MC = b, what does this imply about the relationship between cost and quantity produced?

    <p>Marginal cost is constant with respect to the level of output.</p> Signup and view all the answers

    When calculating economic value added by sustainability, what does the term (Q*) represent?

    <p>Optimal output for the sustainability-oriented product.</p> Signup and view all the answers

    How is the optimal price P* for quantity Q* derived from the demand function P(Q) = m + nQ?

    <p>P* = (b + m) / 2</p> Signup and view all the answers

    What is the focus of Phase 1 in the evolution of social issue regulation?

    <p>Activists express concern without public support</p> Signup and view all the answers

    Which of the following best describes Phase 4 of social issue regulation?

    <p>Regulators enforce new rules which can be legally challenged</p> Signup and view all the answers

    How does a firm determine its level of compliance with social regulations?

    <p>Based on the expected net benefit of compliance</p> Signup and view all the answers

    What factor can increase a firm's motivation to comply with social regulations?

    <p>A stronger perceived threat to profit from social lobbying</p> Signup and view all the answers

    Which attributes of a company might suggest higher returns from social targeting campaigns?

    <p>Well-recognized brand and industry leadership</p> Signup and view all the answers

    What is the primary action taken during the Politicization phase?

    <p>Public awareness and engagement from politicians</p> Signup and view all the answers

    What occurs if a company's compliance costs are perceived as too high?

    <p>The company often ignores the regulations</p> Signup and view all the answers

    What is a characteristic of firms that typically respond positively to social regulation?

    <p>Past corporate interest in the issue at hand</p> Signup and view all the answers

    What is meant by creative destruction in economic terms?

    <p>A market-driven process that replaces old products and processes with new innovations.</p> Signup and view all the answers

    How does policy conflict of interest impact creative destruction?

    <p>It leads to social inefficiency by protecting certain groups from competition.</p> Signup and view all the answers

    What does the term 'stakeholder engagement' imply in business decision making?

    <p>Considering the long-term benefits for all parties impacted by business decisions.</p> Signup and view all the answers

    What is the significance of understanding prediction error in regression analysis?

    <p>It measures the accuracy of predicted values against observed data.</p> Signup and view all the answers

    How might replacing an old product with a sustainably designed one affect demand?

    <p>It could increase demand as consumers favor environmentally friendly options.</p> Signup and view all the answers

    What factor must be considered when evaluating the future profits of a new sustainability strategy?

    <p>The immediate increase in production costs associated with new designs.</p> Signup and view all the answers

    In terms of strategic business decision making, which of the following reflects traditional practices?

    <p>Prioritizing short-term profits over stakeholder impacts.</p> Signup and view all the answers

    What is a likely outcome when regulations hinder creative destruction?

    <p>It can slow down market evolution and increase inefficiency.</p> Signup and view all the answers

    Study Notes

    Course Information

    • Course name: Business, Government, and Society
    • Course code: BUS-G202
    • Professor: Phil Powell
    • Topic: Various, including Business Analytics, Stakeholder Engagement, Asymmetric Information, Social Regulation, Social Innovation, and others.

    Specific Topics

    • Business Analytics: Exam 3 is scheduled for Thursday, December 5th. Exam 3 review materials cover Topics 9, 10, 11, 12, and 13 including regression analysis, prediction error, cost/demand functions, and profit maximization.
    • Stakeholder Engagement: This topic addresses how companies interact with various stakeholders and the potential implications of stakeholder engagement on profits, and tradeoffs for firms.
    • Asymmetric Information: This topic studies the situations where one party in a transaction has more information than the other and how regulation can address these imbalances, closing gaps in knowledge and aiming for more socially efficient outcomes.
    • Social Regulation: This topic covers regulations and governmental policies driven by social concerns, and how these impact business strategies.
    • Social Innovation: Explores entrepreneurial ventures creating new products and services to redefine markets, add social value, and generate economic profit. It also assesses the tradeoffs and benefits of innovation vs. profit.
    • Case Debriefs: The course includes case studies on companies like BlackRock, BP, Apple, Facebook, and Starbucks, examining their responses to social pressures and regulations, analyzing tradeoffs and motivations.
    • Specific Dates and Deadlines: Note important dates for exams, case discussions, and deadlines for accommodations.

    Additional Information

    • Top Hat: The join code is needed for relevant course materials and updates.
    • Reminders: Various reminders are included in the slides about upcoming deadlines, course materials and class cancellations for particular days.

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    Related Documents

    BUS-G202 Business, Government, and Society Lecture Notes - Topic 9 - Business Analytics

    Description

    Prepare for Exam 3 in Business, Government, and Society with this review covering essential topics such as Business Analytics, Stakeholder Engagement, and Asymmetric Information. Understand key concepts like regression analysis and the implications of stakeholder interactions on corporate profits. This quiz will help solidify your knowledge before the exam on December 5th.

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