Question 1

Under the __________ view of the firm,resources can be a source of competitive advantage if they are __________.
A) resource-based; rare
B) systems-based; hard to copy
C) resource-based; available to competitors
D) systems-based; available to competitors

Accepted Answer

The resource-based view of the firm suggests that resources can be a source of competitive advantage only if they are rare, valuable, and difficult to imitate or substitute. Option A is the only choice that correctly includes the resource-based view and the criteria for resources to be a basis for a competitive advantage, making it the correct answer.Option B, C, and D are incorrect because they either refer to the systems-based view, which is not mentioned, or suggest that resources that competitors are able to obtain can still be a source of competitive advantage, which is not true according to the resource-based view.

Question 2

In CASE 1.1 Sorrell v.IMS Health Inc.,drug manufacturers challenged as unconstitutional a Vermont statute prohibiting pharmacies from selling prescriber-identifying information for marketing prescription drugs without the consent of prescribers.What was the U.S.Supreme Court ruling in this matter?
A) Although speech promoting marketing was not protected by the First Amendment,the law was unconstitutional based on the due process clause.
B) The statute regulated commercial speech,which was evaluated under an "intermediate" standard and the law was,therefore,constitutional.
C) The statute did not involve constitutional issues and was,therefore,a permissible type of regulation.
D) The conduct prohibited by the law was protected by the First Amendment and the law was unconstitutional.

Accepted Answer

The U.S. Supreme Court ruled that the conduct prohibited by the Vermont statute was protected by the First Amendment, and therefore, the law was unconstitutional. This decision emphasized the protection of free speech, even in the context of commercial activities such as marketing prescription drugs.

Question 3

Law is not just a static,external force acting upon managers and their firms; rather law and organizations are "endogenously coevolutionary."

Accepted Answer

This means that law and organizations are not separate, isolated entities, but rather they interact and influence each other in an ongoing, dynamic process.

Question 4

Management teams that practice __________.
A) value-based compliance management view the cost of compliance as an expense rather than an investment
B) strategic compliance management identify and embrace operational changes in order to convert regulatory constraints into innovation opportunities
C) resource-based management see regulation compliance as a competitive advantage
D) strategic-based risk management are the most legally astute of managers

Accepted Answer

Strategic compliance management identify and embrace operational changes in order to convert regulatory constraints into innovation opportunities. The other options reflect incorrect or incomplete views on compliance management. For example, value-based compliance management views the cost of compliance as an investment rather than an expense. Resource-based management sees regulation compliance as necessary, but not necessarily a competitive advantage, while strategic-based risk management focuses on minimizing risk rather than converting regulatory constraints into opportunities.

Question 5

Discuss ways in which laws and regulations promote economic growth.

Accepted Answer

The answer of Discuss ways in which laws and regulations...

Question 6

Which of the following is a component of managing risk when assembling a team in business development?
A) Analyzing any covenants not to compete
B) Purposefully refusing to address issues such as sexual harassment
C) Informing employees that e-mail communications are not discoverable
D) Ignoring whistleblower protection

Accepted Answer

Analyzing any covenants not to compete is a component of managing risk when assembling a team in business development as it helps ensure that the team members do not have any legal restrictions that could hinder the progress of the business.

B, C, and D are not components of managing risk when assembling a team in business development as they all involve unethical or illegal behavior. Purposefully refusing to address issues such as sexual harassment could lead to lawsuits and damage the company's reputation. Informing employees that e-mail communications are not discoverable could be seen as an attempt to cover up wrongdoing. Ignoring whistleblower protection could discourage employees from reporting potential legal or ethical violations, increasing the risk of legal action.

Question 7

Which of the following falls within the legal limits of lobbyist activity?
A) Giving gifts to governmental officials
B) Contributing to entities that hold the lawmaker's interest
C) Hosting campaign events for lawmakers running for reelection
D) Paying lawmakers' staff for personal access to lawmakers on behalf of client

Accepted Answer

Lobbyists are legally allowed to contribute to entities that hold the lawmaker's interest, such as political action committees (PACs) or non-profit organizations.

Question 8

U.S.laws promote public welfare in a variety of ways.Which of the following would be one of those ways?
A) Protecting fundamental rights
B) Preventing deceptive practices
C) Regulating terms and conditions of employment
D) Allocating risks

Accepted Answer

Protecting fundamental rights, such as the right to free speech and equal protection under the law, not only promotes public welfare but is also an essential part of a functioning democracy. Laws that protect these rights ensure that individuals are free to express themselves and participate fully in society without fear of retaliation or discrimination.

Question 9

Under the resource-based view of a firm,when can a firm's resources be a source of sustained competitive advantage?

Accepted Answer

The answer of Under the resource-based view of a firm,when...

Question 10

Assume that after paying a large fine,a company survives charges of illegal activity.In what ways does illegal conduct put a company at a competitive disadvantage?

Accepted Answer

The answer of Assume that after paying a large fine,a...

Question 11

Which of the following is NOT one of "Porter's Five Forces" that affect the competitive environment?
A) Threat of entry
B) Direct competition
C) Logistics and component supply
D) Buyer power

Accepted Answer

Porter's Five Forces are: Threat of entry, Bargaining power of suppliers, Bargaining power of buyers, Threat of substitutes, and Rivalry among existing competitors. Logistics and component supply does not fit into any of these categories.

Question 12

How does U.S.business law promote consumer welfare?

Accepted Answer

The answer of How does U.S.business law promote consumer welfare?...

Question 13

Legally astute management teams typically wait until later in the strategic development to bring counsel in and evaluate legal considerations.​

Accepted Answer

Legally astute management teams bring in counsel early on in the strategic development process to evaluate legal considerations and avoid potential legal issues. Waiting until later in the process can lead to costly mistakes and missed opportunities to address legal concerns.

Question 14

Lobbying activities look different in the European Union from the way they look in the United States.Which of the following represents the advice of lobbyists for U.S.interests in the European Union?
A) Refrain from presenting your position to commission members individually; the presentation must be to the full commission to be considered.
B) The most effective lobbying follows the relevant EU commission's preliminary draft opinion.
C) Refrain from any lobbying activity until a full presentation can be made to regulators.
D) Present your position to regulators ahead of any political debate on the issue.

Accepted Answer

Lobbyists in the EU often advise presenting positions to regulators early, before political debates, to influence the initial stages of policy formation.

Question 15

Which of the following entities is at the center of a systems approach to law,business,and society?
A) Public law
B) Value proposition
C) Competitive environment
D) Top management team

Accepted Answer

The answer of Which of the following entities is at...

Question 16

__________ is a type of relationship building lobbying that is prevalent in China.
A) Xantu
B) Olaying
C) Guanxi
D) Quinta

Accepted Answer

Guanxi refers to the practice of building relationships and networks in order to establish trust and mutual benefit. It is an important aspect of lobbying and business in China, where personal connections and reputation are highly valued. A, B, and D are not relevant terms in this context.

Question 17

In what three specific ways does U.S.law protect workers?

Accepted Answer

The answer of In what three specific ways does U.S.law...

Question 18

_____ strategies for dealing with the interface between a firm's business and the natural environment that go beyond environmental regulatory compliance have been associated with _____ financial performance.
A) Proactive; sub-par
B) Legislative; improved
C) Proactive; improved
D) Defensive; peak

Accepted Answer

Proactive strategies for dealing with the interface between a firm's business and the natural environment that go beyond environmental regulatory compliance have been associated with improved financial performance. Research has shown that firms that adopt proactive environmental strategies, such as implementing eco-friendly practices and investing in green technologies, tend to have better financial performance than those that only comply with environmental regulations. Defensive strategies that simply aim to minimize negative environmental impacts without investing in proactive measures are not as effective in driving financial performance. Legislative strategies, which rely on government regulations to dictate environmental practices, may improve environmental performance but are not necessarily linked to financial performance.

Question 19

The ____ approach to business and society introduced in the text is a descriptive framework that integrates legal and societal considerations with mainstream theories of competitive advantage and social responsibility.
A) Integrative
B) Systems
C) Proactive
D) Economic

Accepted Answer

The answer of The ____ approach to business and society...

Question 20

Merle,the CEO of a corporation owning a number of pet stores,calls you for advice.Merle shares inside information that the stock of the company is going to go down because of reports that a number of dogs sold by the store had become ill and that Merle,therefore,immediately sold all personal stock in the company before the information became public.Then Merle tells you that counsel has warned of pending charges of securities violation involving Merle's insider trading.Which of the following is true regarding Merle's situation?
A) Corporate executives may be fined but may not be sent to jail.
B) Corporate executives may be sent to jail,but only for offenses endangering others.
C) Corporate executives may be sent to jail,but only for fraud involving banks.
D) Corporate executives may be sent to jail for violation of criminal laws.

Accepted Answer

Corporate executives may be sent to jail for violation of criminal laws, including insider trading. Merle's actions of selling personal stock based on inside information is a violation of securities law and can lead to criminal charges.

Quiz 1: Law-Value-Creation-And-Risk-Management

Under the view of the firm,resources can be a source of competitive advantage if they are .

In CASE 1.1 Sorrell v.IMS Health Inc.,drug manufacturers challenged as unconstitutional a Vermont statute prohibiting pharmacies from selling prescriber-identifying information for marketing prescription drugs without the consent of prescribers.What was the U.S.Supreme Court ruling in this matter?

Law is not just a static,external force acting upon managers and their firms; rather law and organizations are "endogenously coevolutionary."

Management teams that practice __________.

Discuss ways in which laws and regulations promote economic growth.

Which of the following is a component of managing risk when assembling a team in business development?

Which of the following falls within the legal limits of lobbyist activity?

U.S.laws promote public welfare in a variety of ways.Which of the following would be one of those ways?

Under the resource-based view of a firm,when can a firm's resources be a source of sustained competitive advantage?

Assume that after paying a large fine,a company survives charges of illegal activity.In what ways does illegal conduct put a company at a competitive disadvantage?

Which of the following is NOT one of "Porter's Five Forces" that affect the competitive environment?

How does U.S.business law promote consumer welfare?

Legally astute management teams typically wait until later in the strategic development to bring counsel in and evaluate legal considerations.

Lobbying activities look different in the European Union from the way they look in the United States.Which of the following represents the advice of lobbyists for U.S.interests in the European Union?

Which of the following entities is at the center of a systems approach to law,business,and society?

__________ is a type of relationship building lobbying that is prevalent in China.

In what three specific ways does U.S.law protect workers?

_ strategies for dealing with the interface between a firm's business and the natural environment that go beyond environmental regulatory compliance have been associated with _ financial performance.

The ____ approach to business and society introduced in the text is a descriptive framework that integrates legal and societal considerations with mainstream theories of competitive advantage and social responsibility.

Quiz 1: Law-Value-Creation-And-Risk-Management

Under the __________ view of the firm,resources can be a source of competitive advantage if they are __________.

In CASE 1.1 Sorrell v.IMS Health Inc.,drug manufacturers challenged as unconstitutional a Vermont statute prohibiting pharmacies from selling prescriber-identifying information for marketing prescription drugs without the consent of prescribers.What was the U.S.Supreme Court ruling in this matter?

Law is not just a static,external force acting upon managers and their firms; rather law and organizations are "endogenously coevolutionary."

Management teams that practice __________.

Discuss ways in which laws and regulations promote economic growth.

Which of the following is a component of managing risk when assembling a team in business development?

Which of the following falls within the legal limits of lobbyist activity?

U.S.laws promote public welfare in a variety of ways.Which of the following would be one of those ways?

Under the resource-based view of a firm,when can a firm's resources be a source of sustained competitive advantage?

Assume that after paying a large fine,a company survives charges of illegal activity.In what ways does illegal conduct put a company at a competitive disadvantage?

Which of the following is NOT one of "Porter's Five Forces" that affect the competitive environment?

How does U.S.business law promote consumer welfare?

Legally astute management teams typically wait until later in the strategic development to bring counsel in and evaluate legal considerations.​

Lobbying activities look different in the European Union from the way they look in the United States.Which of the following represents the advice of lobbyists for U.S.interests in the European Union?

Which of the following entities is at the center of a systems approach to law,business,and society?

__________ is a type of relationship building lobbying that is prevalent in China.

In what three specific ways does U.S.law protect workers?

_____ strategies for dealing with the interface between a firm's business and the natural environment that go beyond environmental regulatory compliance have been associated with _____ financial performance.

The ____ approach to business and society introduced in the text is a descriptive framework that integrates legal and societal considerations with mainstream theories of competitive advantage and social responsibility.

Under the view of the firm,resources can be a source of competitive advantage if they are .

Legally astute management teams typically wait until later in the strategic development to bring counsel in and evaluate legal considerations.

_ strategies for dealing with the interface between a firm's business and the natural environment that go beyond environmental regulatory compliance have been associated with _ financial performance.