Bachelor of General Studies (BGS) Degree Practice Exam

What is the term used to describe the capability of corporations to influence government, the economy, and society?

1. Corporate influence

2. Corporate power

3. Corporate responsibility

4. Corporate governance

The correct answer is: Corporate power

The term "corporate power" refers to the ability of corporations to shape and impact government policies, economic conditions, and societal norms and values. This concept encompasses the ways in which large corporations can leverage their financial resources, lobbying efforts, and market dominance to sway legislation, influence public perception, and drive economic trends. Corporate power highlights the significant role that businesses play in the broader socio-economic landscape, as they often have the means and incentives to affect decisions that can bring about substantial change. This impact can range from lobbying for favorable regulations to engaging in practices that affect employment, production, and consumption patterns. In contrast, terms like "corporate influence" may imply a more subtle or indirect impact rather than the broad range of capabilities encompassed within corporate power. "Corporate responsibility" focuses more on ethical obligations and accountability of corporations to society rather than their power dynamics. "Corporate governance" pertains to the framework of rules, practices, and processes by which a corporation is directed and controlled, which does not fully capture the essence of a corporation's ability to influence external factors.