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20 Cards in this Set
- Front
- Back
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What is business power?
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The force behind an act by a company, industry, or sector. The social contract legitimizes business power by giving it a moral basis
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When is business power legitimate?
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Business power is said to be legitimate when the public believes that business is acting within the scope of the implied social contract.
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What is meant by the term "expectations gap"?
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An expectation gap arises when the public expectations of business exceed what business sees as its responsibilities.
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In 1884, who was the person that established the American Tobacco Trust? |
James B. Duke
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What are the two levels do corporate actions have an impact on society and how are they impacted? |
Surface level- Business power is the direct cause of visible, immediate changes, both great and small.
Deep level- Corporate power shapes society over time through the aggregate changes of industrial growth. |
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Name the 7 levels and spheres of corporate power. |
1. Economic power- Ability of the corporation to influence events, activities,and people by virtue of control over resources. 2. Technological power- Ability to influence the direction, rate, characteristics,and consequences of physical innovations as they develop. 3. Political power- Ability to influence governments 4. Legal power- Ability to shape the laws of society 5. Cultural power- Ability to influence cultural values, habits, and institutions such as the family 6. Environmental power- The impact of a company on nature 7. Power over individuals- exercised over employees, managers, stockholders,consumers, and citizens |
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Railroads revolutionized transportation due to what three things?
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a. Speed
b. Cost c. Direct routes |
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How did the railroads change American politics? |
Trains changed the way candidates were picked, enabled associations to have national meetings and spread issues that might in an earlier era have remained local.
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Name the two perspectives on business power. |
a. Dominance theory
b. Pluralist theory |
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Describe the Dominance Theory. |
The view that business is the most powerful institution in society, because of its control of wealth. This power is inadequately checked and, therefore, excessive.
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Describe the Pluralist Theory. |
The view that business power is exercised in a society where other institutions also have great power. It is counterbalanced and restricted and, therefore, not excessive
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Who are the power elite? |
A small group of individuals in control of the economy, government, and military.
(The theory of its existence is associated with the American sociologist C. Wright Mills) |
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The force or strength to act or to compel another entity to act is known as:
A) management. B) regulation. C) power. D) virtue. |
C) power.
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On the _____ level of societal impact, corporate power shapes society over time through the aggregate changes of industrial growth.
A) shallow B) deeper C) surface D) apparent |
B) deeper
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At the _____ level of power over individuals, a corporation determines the work life and buying habits of individuals.
A) deeper B) central C) core D) surface |
D) surface
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According to the dominance theory:
A) business power is exercised in a society in which other institutions also have great power. B) asset concentration creates monopoly in markets that increases competition. C) the rise of huge corporations creates a business elite. D) business power is counterbalanced, controlled, and subject to defeat. |
C) the rise of huge corporations creates a business elite.
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Which theory states that business power is counterbalanced, restricted, controlled, and subject to defeat?
A) The Marxist theory B) The pluralist theory C) The dominance theory D) The state autonomy theory |
B) The pluralist theory
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Sociologist C. Wright Mills saw American society as a pyramid of power and status. At the top of the pyramid was a:
A) group of politicians beholden to the elite for their election. B) mass of powerless citizens. C) big group of lieutenants who carried out the elite's policies. D) tiny elite in command of the economic, political, and military domains. |
D) tiny elite in command of the economic, political, and military domains.
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According to the doctrine of natural rights:
A) people behave in ways that allow them to obtain favorable outcomes. B) all persons are created equal and are entitled to the same opportunities and protections. C) inalienable rights are considered to be self-evident and universal. D) inalienable rights cannot be surrendered by citizens to the sovereign. |
B) all persons are created equal and are entitled to the same opportunities and protections.
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According to the theory of _____, governments and laws, social interest groups, social values, and markets and economic stakeholders are the boundaries of managerial power.
A) pluralism B) transnational power elite C) institutional elite D) dominance |
A) pluralism
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