Public Relations Exam 3

All three types of nonprofits, including charities, foundations, and social advocacy organizations, rely on public relations strategies to achieve their goals. Public relations is a crucial tool for these organizations to raise awareness about their cause, promote the use of their services, develop educational materials to inform the public, attract volunteers to support their initiatives, and secure funding for their operations. Therefore, it is true that all three types of nonprofits utilize public relations as an essential aspect of their overall strategy.

The three distinct purposes of corporations are to raise capital, sell company stock, and fund expansion. These purposes are essential for the growth and sustainability of a corporation. By raising capital, corporations can secure funds from investors or lenders to finance their operations and investments. Selling company stock allows corporations to raise additional funds by offering ownership shares to the public. Lastly, funding expansion refers to using the generated capital to expand the corporation's operations, enter new markets, or develop new products or services. These purposes collectively contribute to the financial success and growth of corporations.

The given statement explains that the "Pantene Beautiful Lengths" campaign encourages consumers to grow, cut, and donate their hair to make wigs for women who have lost theirs to cancer. This act of encouraging consumers to contribute towards a social cause by supporting cancer patients aligns with the concept of Cause-Related Marketing. Therefore, the statement is true.

Google is considered the second most admired company in the world because of its strong brand reputation, innovative products and services, and its impact on various industries. Google has a dominant presence in the technology sector, with its search engine being the most widely used globally. The company has also diversified its offerings with products like Google Maps, Gmail, YouTube, and Android. Google's success in areas such as artificial intelligence, cloud computing, and autonomous vehicles has further solidified its position as a highly admired company. Its commitment to corporate social responsibility and sustainability initiatives has also contributed to its positive image.

The basic purpose of IR is to build and maintain relationships with institutional investors, stockholders, financial analysts, and financial media. This is important because it helps to create investor confidence and trust in publicly held companies. By providing timely and full disclosure of financial information, IR contributes to the overall transparency and accountability of these companies. This, in turn, helps to attract and retain investors, which is crucial for the success and growth of the organization.

IR practitioners must have an understanding of finance, accounting, and law because these areas are interconnected and crucial for effectively managing and navigating international relations. Finance knowledge helps in understanding economic systems, managing budgets, and analyzing financial data. Accounting knowledge is essential for accurately recording and reporting financial transactions. Law knowledge is necessary to comprehend and comply with legal frameworks, regulations, and international treaties. Having a comprehensive understanding of all three areas enables IR practitioners to make informed decisions, negotiate agreements, and address financial and legal challenges that arise in the field.

The correct answer is the 1968 Supreme Court case SEC v. Texas Gulf Sulphur Co., and the collapse of energy giant Enron in Houston in 2001-02. These two events had a significant impact on corporate financial public relations. The SEC v. Texas Gulf Sulphur Co. case established important precedents in insider trading regulations, highlighting the need for transparency and accountability in corporate communications. The Enron scandal exposed widespread corporate fraud and accounting irregularities, leading to increased scrutiny and regulation in the financial industry. These events served as catalysts for reforms and shaped the way companies communicate with the public in matters of finance.

In a proxy fight, individuals or groups attempt to gain control of a corporation by persuading shareholders to give them the authority to cast their votes. Shareholders are asked to give their proxy, which is similar to absentee voting rights, to either side involved in the fight. This means that shareholders do not sell their stocks, but rather grant their voting power to the party they support. The other options mentioned (Sarbanes-Oxley Act of 2002, Publics for investor relations, and the Tender offer) do not directly relate to the scenario described.

The correct answer is PETA because PETA, which stands for People for the Ethical Treatment of Animals, is an animal rights organization, not a social organization. While social organizations typically focus on providing services or support to individuals or communities, PETA's main objective is to advocate for animal rights and promote animal welfare.

The statement "Measuring and monitoring our progress for each project" is not a part of Starbucks company mission statement. The other statements focus on providing a great work environment, treating each other with respect and dignity, applying high standards to coffee purchasing and delivery, and recognizing profitability as essential to future success. However, measuring and monitoring project progress is not explicitly mentioned in the mission statement.

The correct answer is 1929, stock market crash. The Securities and Exchange Commission (SEC) was created in response to the stock market crash of 1929. This crash led to the Great Depression and exposed numerous fraudulent practices in the securities market. To restore investor confidence and regulate the securities industry, the SEC was established as a federal agency in 1934. Its main purpose is to protect investors, ensure fair and efficient markets, and facilitate capital formation.

Martha Stewart was dismissed on the charge of committing securities fraud. This refers to the illegal practice of deceiving investors or manipulating financial markets for personal gain. In Stewart's case, she was accused of insider trading related to her sale of ImClone Systems stock. She was found guilty of making false statements to investigators about the reasons behind her stock sale, which ultimately led to her conviction on the charge of securities fraud.

A Form 10-K is a comprehensive annual report that is filed by publicly traded companies with the Securities and Exchange Commission (SEC) in the United States. It provides a detailed overview of the company's financial performance, business operations, risk factors, and other relevant information. The purpose of filing a Form 10-K is to provide transparency and accountability to shareholders and potential investors. It is an important tool for investors to assess the company's financial health and make informed investment decisions.

The correct answer is "all of the above." This means that all of the mentioned benefits of 501(c)(3) organizations apply. These benefits include not having to pay federal, state, and local taxes, being able to grant tax deductions to donors, and receiving donated time from media for public service announcements (PSAs).

The question is asking for an association that is NOT related to membership organizations. The options provided are trade, social, professional, and chambers of commerce. Trade and professional associations are commonly known as membership organizations, while chambers of commerce can also be considered membership organizations. However, social associations are not typically associated with membership organizations. Therefore, social is the correct answer as it does not align with the other options in terms of being an association of membership organizations.

Membership organizations do not necessarily practice social marketing. While some membership organizations may use social marketing techniques to promote their services or causes, it is not a defining characteristic of membership organizations as a whole. Therefore, the statement is false.

Staff relations is not one of the major specialties in corporate public relations. This specialty focuses on managing and improving the relationship between the organization and its employees. While important for internal communication and employee engagement, staff relations is not typically considered a major specialty in corporate public relations. The major specialties in corporate public relations usually include media relations, investor relations, and government relations, which involve managing the organization's relationship with the media, investors, and government entities respectively.

The statement is false because a line function refers to the core activities or departments of an organization that directly contribute to its primary goals, such as production or sales. Finance, human resources, legal, and PR are considered staff functions or support functions, as they provide assistance and support to the line functions.

A corporate mission statement is a fundamental statement of an organization's business philosophy, goals, values, and social responsibility to its stakeholders. It serves as a guiding principle for the organization, providing employees with a sense of purpose and direction. The mission statement outlines the company's overall purpose and the actions it intends to take to fulfill its obligations to its stakeholders. It helps to define the organization's identity and sets the tone for its operations and decision-making processes.

The given statement describes the economic mission of Ben & Jerry's. This mission focuses on operating the company in a financially sustainable way, with profitable growth and increasing value for shareholders. It also emphasizes providing career opportunities and financial rewards for employees. This mission highlights the importance of financial stability and success for the company and its stakeholders.

The statement suggests that for economic prosperity, communities and companies need to collaborate and utilize shared resources. This implies that both entities must have a symbiotic relationship, where they rely on each other's support and cooperation. By working together, communities can benefit from the resources and opportunities provided by companies, while companies can thrive with the support and involvement of the community. This mutual reliance and collaboration can lead to economic growth and prosperity for both parties involved.

Crest used Mary J.Blige in its "healthy smiles" campaign.

Erbitux is the correct answer because the question asks which drug Imclone was preparing to market. The other options, Zolara, Viagra, and Tremedol, are not mentioned in the context of Imclone's preparations for marketing. Therefore, Erbitux is the drug that Imclone was preparing to market.

Section 501(c)(3) of the tax code provides tax-exempt status to various types of organizations. It covers religious organizations, educational organizations, and charitable organizations. However, it does not cover membership organizations. Membership organizations typically include trade associations, professional societies, and social clubs, which are not eligible for tax-exempt status under this specific section of the tax code.

Values-led business refers to the belief that a company has a responsibility towards the people and society that support its existence. This means that a business should not only focus on making profits but also consider the well-being of its employees, customers, and the wider community. It involves integrating socially beneficial actions into various aspects of the business and prioritizing the highest quality of customer service. By expressing why the organization exists, it creates a sense of warmth, friendliness, individual pride, and company spirit.

The given correct answer suggests that the stock of Apple, a company that has been in existence for 35 years, sells for $500 per share.

Cause-related marketing is a strategy where a company aligns its values and goals with those of its customers by supporting a social or environmental cause. This can be done by donating a portion of sales to a charity, partnering with a nonprofit organization, or promoting a cause through advertising and campaigns. By engaging in cause-related marketing, a company demonstrates its commitment to corporate citizenship and shows that it cares about the same issues that its customers care about. This helps to build a positive brand image and strengthen the relationship between the company and its customers.

Social responsibility refers to the actions and decisions made by an organization that positively impact the larger society it operates in. It involves contributing to the well-being and development of the community, while also ensuring that these actions do not have any negative consequences. This can include initiatives such as philanthropy, ethical business practices, environmental sustainability, and promoting diversity and inclusion. Social responsibility is an important aspect of corporate citizenship and is increasingly expected from organizations by stakeholders and society at large.

The correct answer is environmental groups and activist, or cause related groups. Advocacy organizations are typically involved in promoting and supporting specific causes or issues. Environmental groups are a type of advocacy organization that focuses on protecting and preserving the environment. Activist or cause-related groups are also advocacy organizations that work towards creating social or political change on specific issues. Both types of organizations aim to raise awareness, mobilize support, and influence policies related to their respective causes.

The web is important to ACS for three main reasons: fundraising, to know what our public say about us, and advocacy. Fundraising is crucial for ACS to support its activities and initiatives, and the web provides a platform to reach a larger audience and gather donations. Knowing what the public says about ACS helps the organization understand its reputation, identify areas of improvement, and engage with its audience effectively. Additionally, the web allows ACS to advocate for its cause and raise awareness about important issues, reaching a wider audience and mobilizing support.