Business And Society Ethics And Stakeholder Management 1st Canadian Edition by Len Karakowsky -Test Bank

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Chapter 5—Issues Management and Crisis Management

 

TRUE/FALSE

 

  1. Issues management and crisis management are the same thing.

 

ANS:  F

 

  1. The conventional approach to issues management addresses issues that fall within the domain of public policy or public affairs management.

 

ANS:  T

 

  1. The strategic approach to issues management is broader than the conventional approach.

 

ANS:  T

 

  1. The conventional approach to issues management cannot be used as a “stand alone” decision process because it is intimately interconnected with the strategic management process as a whole.

 

ANS:  F

 

  1. The emergence of issues managers is a direct outgrowth of the changing mix of issues that managers have had to handle.

 

ANS:  T

 

  1. In practically all conceptualizations of the issues management process, issue analysis is the first stage.

 

ANS:  F

 

  1. According to author Joseph Coates, in an emerging issue, the terms of the debate are not clearly defined.

 

ANS:  T

 

  1. T. Graham Molitor has advocated that there are only three leading forces in predicting social change: leading events, leading literature, and leading political jurisdictions.

 

ANS:  F

 

  1. An example of a “leading event” might be the group known as the Sierra Club.

 

ANS:  F

 

  1. A probability-impact matrix is most useful in the issue identification stage.

 

ANS:  F

 

  1. Strategy relevance, action ability, criticality, and urgency are filter criteria for ranking issues.

 

ANS:  T

 

  1. To date, no one has been able to describe or explain the issues development process.

 

ANS:  F

 

  1. One view is that the issues development process tends to follow an eight-year curve, though it is very difficult to generalize about the time frame.

 

ANS:  T

 

  1. The use of “precursor” events or “bellwethers” are among the techniques used in issues identification.

 

ANS:  T

 

  1. An essential factor in whether issues management is effective has been found to be whether the CEO is a member of the Issues Management Association.

 

ANS:  F

 

  1. In practice, issues management may only be conducted when it is housed, organizationally, in a department of its own.

 

ANS:  F

 

  1. The first of the four crisis stages is the prodromal stage.

 

ANS:  T

 

  1. The acute crisis stage is the first of the four crisis stages.

 

ANS:  F

 

  1. Communications planning should be a part of managing business crisis.

 

ANS:  T

 

  1. One key aspect of a crisis is that conditions will always get worse.

 

ANS:  F

 

MULTIPLE CHOICE

 

  1. Which of the following approaches to issues management is restricted to public and social issues?
a. conventional approach
b. strategic management approach
c. public affairs approach
d. restricted approach

 

 

ANS:  A

 

  1. Which of the following is not included in the conventional approach to issues management?
a. issues fall within the domain of public policy or public affairs
b. issues typically have a public policy/public affair orientation
c. issues management is responsible of senior line management
d. issues originate in social/political/regulatory environments

 

 

ANS:  C

 

  1. Which of the following approaches to issues management can be used as a “stand alone” decision process?
a. conventional approach
b. strategic management approach
c. public affairs approach
d. restricted approach

 

 

ANS:  A

 

  1. A ___________ refers to a matter that is in dispute between to or more parties.
a. trend
b. issue
c. action
d. threat

 

 

ANS:  B

 

  1. The emergence of “issues managers” is a direct outgrowth of
a. the professionalism of the field.
b. the rise of public affairs specialists to CEO positions.
c. the changing mix of issues that managers have had to handle.
d. college programs that train issues managers.

 

 

ANS:  C

 

  1. Which of the following was not cited by Coates as a characteristic of an emerging issue?
a. The terms of the debate are not clearly defined.
b. It deals with matters of conflicting values and issues.
c. Tradeoffs play no role in the issue.
d. It is often stated in value-laden terms.

 

 

ANS:  C

 

  1. Which of the following does not refer to issue identification?
a. social forecasting
b. future research
c. megatrends
d. environmental scanning

 

 

ANS:  C

 

  1. In the Issues Management Process presented in the text, which of the following best represents the sequence of steps involved?
a. Issues ranking, analysis, identification, response formulation
b. Issues identification, analysis, prioritization, response formulation
c. Formulation of issue response, implementation of issues response, identification of issues, analysis of issues
d. Prioritization of issues, analysis, response formulation, response implementation

 

 

ANS:  B

 

  1. The major contribution of books like Megatrends is
a. in explaining issues identification.
b. in the realm of trend-spotting services.
c. in providing vivid, recent examples of corporate crises.
d. none of the above.

 

 

ANS:  B

 

  1. In the issues management process what step comes after the identification of issues?
a. analysis of issues
b. ranking or prioritization of issues
c. formulation of issue responses
d. implementation of issue responses

 

 

ANS:  A

 

  1. According to John Naisbitt,
a. the really important issues always start somewhere in the countryside.
b. issues management is a dying art.
c. the really important issues always start in the major, large cities.
d. the really important issues typically start in Europe.

 

 

ANS:  A

 

  1. At various times, the terms social forecasting, futures research, and environmental scanning have been used to refer to
a. public affairs management.
b. stakeholder analysis.
c. probability-diffusion analysis.
d. issue identification.

 

 

ANS:  D

 

  1. William R. King has developed an issues-ranking scheme. He recommends that issues be screened on five filter criteria. Which one of the following is not one of the five?
a. strategy
b. relevance
c. actionability
d. normative

 

 

ANS:  D

 

  1. Which of the following was not one of Molitor’s five leading forces in predicting change?
a. political jurisdictions
b. authorities/advocates
c. Cabinet decisions
d. literature

 

 

ANS:  C

 

  1. A probability-impact matrix compares the probability (high, medium, low) of occurrence of an issue with an assessment of the impact on
a. the company.
b. Society.
c. primary stakeholders.
d. voting patterns.

 

 

ANS:  A

 

  1. William R. King recommends that issues be screened on the basis of
a. urgency to society.
b. five filter criteria.
c. probability-impact analysis.
d. executive intuition.

 

 

ANS:  B

 

  1. Which of the following is not one of Thomas Marx’s stages in the issue development process?
a. prodromal initiative
b. social expectations
c. political issues
d. social control

 

 

ANS:  A

 

  1. The loss of executives, personnel or workplace violence is and example of which type of crisis?
a. economic
b. human resource
c. psychopathic
d. Natural

 

 

ANS:  B

 

  1. The study by Wartick and Rude on issues management effectiveness discovered all of the following to be success factors except
a. top management support and involvement.
b. issues management must fill a void in decision making.
c. membership in the Issues Management Association.
d. an emphasis on output, not processes.

 

 

ANS:  C

 

  1. Which of the following depicts the correct sequence of the issue development life cycle process stages presented in the text?
a. Leading political jurisdictions, media coverage, felt need, regulation/litigation
b. Media coverage, felt need, leading political jurisdictions, regulation/litigation.
c. Regulation/litigation, felt need, media coverage, leading political jurisdictions.
d. Felt need, media coverage, leading political jurisdictions, regulation/litigation.

 

 

ANS:  D

 

  1. There are four crisis stages. Which of the following is not one of the four?
a. prodromal crisis stage
b. acute crisis stage
c. Chronic crisis stage
d. strategy crisis stage

 

 

ANS:  D

 

  1. Star-Kist Foods, Johnson & Johnson, and the Canadian beef industry have which of the following in common?
a. They all went bankrupt.
b. They all have effective public affairs offices.
c. They all use Naisbitt’s trend-spotting service.
d. They all have experienced significant crises.

 

 

ANS:  D

 

  1. Which of the following is seen by Steven Fink as the first vital stage in crisis management?
a. identifying the crisis
b. isolating the crisis
c. managing the crisis
d. ending the crisis

 

 

ANS:  A

 

  1. In which four-crisis stage does the crisis usually occur?
a. chronic crisis stage
b. crisis resolution stage
c. acute crisis stage
d. prodromal crisis stage

 

 

ANS:  C

 

  1. According to Fink, which of the following crisis stages is the “warning” stage?
a. Prodromal
b. Acute
c. Chronic
d. crisis resolution

 

 

ANS:  A

 

  1. Fink conducted a survey of Fortune 500 firms and found that
a. most of them have a prepared crisis plan.
b. of those who reported as already having had a crisis, almost all now have a crisis management plan in place for future crisis.
c. most of the executives who responded felt that a crisis in business today is as inevitable as death and taxes.
d. Most of the respondents felt that crimes were less likely today because of their sophisticated crisis management approaches.

 

 

ANS:  C

 

  1. Augustine’s stages of crisis management contain how many stages?
a. 6 stages
b. 4 stages
c. 10 stages
d. 8 stages

 

 

ANS:  A

 

  1. Communication planning and training executives in product dangers and dealing with media is contained in which step of crisis management?
a. identifying areas of vulnerability
b. forming crisis teams
c. simulation crisis drills
d. developing a plan for dealing with threats

 

 

ANS:  D

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