1. According to limited liability, _____.

a) smaller pools of capital could be aggregated for larger enterprises

b) if the venture fails, shareholders would not lose their investments

c) there would be personal liability only

d) there would only be a loss in the value of the corporate stock

2) According to the stakeholder theory, _____.

a) a corporation's social responsibilities are limited to staying within the law only

b) corporations should pay attention only to the bottom line

c) a socially responsible corporation is likely to consider the impact of its decision on the shareholders only

d) all the stakeholders to a corporate decision deserve some kind of moral consideration

3. Which of the following is true according to conscious capitalism?

a) Companies should operate with a holistic or systems view.

b) Companies that practice conscious capitalism concentrate only on giving superior results to shareholders.

c) People in an organization tend to closely watch what the top managers do and say.

d) The best ethics codes are legalistic or compliance driven.