The self-transcendence part of Schwartz's model is composed of
A. security and conformity.
B. universalism and benevolence.
C. achievement and hedonism.
D. self-direction and stimulation.
E. power and achievement.
Answer: B
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How does a sustainable strategy typically help a firm?
A. It reduces the need for corporate social responsibility within the firm. B. It facilitates the firm in effectively isolating its external stakeholders. C. It helps the firm focus solely on its financial goals. D. It helps the firm achieve positive results along the social and ecological dimensions.
Which of the following statements is CORRECT?
A. The factors that affect a firm's business risk are affected by industry characteristics and economic conditions. Unfortunately, these factors are generally beyond the control of the firm's management. B. One of the benefits to a firm of being at or near its target capital structure is that this eliminates any risk of bankruptcy. C. A firm's financial risk can be minimized by diversification. D. The amount of debt in its capital structure can under no circumstances affect a company's business risk. E. A firm's business risk is determined solely by the financial characteristics of its industry.
Greg Buntz is late for his class at Sac Town College in Natomas, California and carelessly runs a stop sign. As luck would have it, Sanjay Varshney is driving through the intersection. Sanjay is a visitor in Natomas from Nevada. Although Sanjay injures are minor, his Porsche suffers badly, with $70,000 total damages, and he is forced to rent a car for a week while it is repaired. Additional
expenses for car repair and medical bills bring his total damages to $79,000. a. Sanjay can sue Greg in an California court, because the accident occurred in California. b. Sanjay can sue Greg in a federal court, because of diversity of citizenship. c. Both of the above. d. None of the above
Duty to Consumers. Terry Campbell, a six-year-old boy, placed a cigarette lighter under his shirt and lit the lighter. His shirt caught on fire, causing him to suffer severe burns. Terry's mother, Mary Campbell, sued Bic Corp, the manufacturer of the
lighter, for damages. Mrs. Campbell contended that the corporation had the capacity to produce cigarette lighters with child-resistant qualities and that its failure to do so was a design defect that made its lighters unreasonably dangerous. (Under strict product liability laws, if a design defect makes a product unreasonably dangerous, the manufacturer and seller of the product may be held liable for any resulting injuries.) Bic sought to dismiss the complaint, claiming that it did not have a duty to design and manufacture child-resistant lighters because the lighters it manu-factured were intended only for adult use. Bic cited the Restatement (Second) of Torts, which holds that manufacturers are subject to liability for physical harm caused to consumers by the manufacturers' products only when the products are being used "for the purposes and in the manner normally intended." Bic further argued that the risks associated with a lighter are open and obvious and that the corporation therefore should not be held liable. Should Bic be held liable for Terry Campbell's injuries, even though the lighter was not being used as intended? Discuss fully.