MGT 100 FINAL EXAM QUESTIONS
AND ANSWERS WITH CORRECT
SOLUTIONS 100% GRADED A+
Top Management Team - CORRECT ANSWES -- - CEO (Investor relations, media,
customers)
- COO (Internal operations)
- CFO (Financial managers)
Operating Income - CORRECT ANSWES -- Revenue- Operating Costs
Net Income - CORRECT ANSWES -- Revenue - All Costs
Gross Margin % - CORRECT ANSWES -- (Revenue - Cost of Sales) / Revenue
Return on Assets - CORRECT ANSWES -- Net income / Total assets
Facebook - CORRECT ANSWES -- - Started as private, now traded on NASDAQ
(became public to raise capital)
- Advertisers looking for people interested in buying their products so they use data
analytics
- What do people do on online networks?
Profit - CORRECT ANSWES -- revenue - cost
WTP - CORRECT ANSWES -- (willingness to pay) creates value for customers
Corporate Ownership - CORRECT ANSWES -- - Represented by shares of stock
- No real limit to # of shareholders
- Market capitalization = market vale of a corporation = share price * # of shares
outstanding
Shareholder-Owners - CORRECT ANSWES -- - Ultimate owners
- Ltd. participation in mgt
Board of Directors - CORRECT ANSWES -- - Top level decision control
- Represents interest of corporation & shareholders
Corporate Governance - CORRECT ANSWES -- - Tries to align top level incentives and
partition decision rights to maximize shareholder value, protect shareholder's assets
, Apple's Value Drivers - CORRECT ANSWES -- - Consumers (Make products for
everyday use, strong in desktop, publishing, education)
- Quality (Easy to use, plug & play, industrial design)
- Service
- Reputation and brand
- Money making strategies (Operational excellence (low costs) & product leadership
(high quality))
PC Now vs. Then - CORRECT ANSWES -- - Then: stand alone productivity device
- Now: networked, communication device
Low Barriers to Entry - CORRECT ANSWES -- - Tech
- Components
- Plant/Location
- Distribution
- Customers
Substitutes - CORRECT ANSWES -- - Network computers
- PDA's, smartphones, other mobile devices
- TV set top boxes, video game consoles
Complements - CORRECT ANSWES -- - Applications/software
- Price decreased
- Functionality and # increased
- Customers WTP to pay for PC instead
Suppliers - CORRECT ANSWES -- 2 types
- Commodity suppliers (no real power over PC manufacturers)
- Monopolists (Microsoft and Intel)
Industry Conclusions - CORRECT ANSWES -- - Sophisticated buyers
- Vicious rivalry
- Low BoE
- Lots of substitutes
- Complements fueling demand
Assets - CORRECT ANSWES -- Liabilities + Stockholder's equity
Discrimination - CORRECT ANSWES -- - Labor Market Discrimination (when employer
makes decision based on observable characteristics)
- Taste-based Discrimination (discrimination based on personal preferences)
- Statistical Discrimination (firms have limited information, use demographics)
Models of Man: REMM - CORRECT ANSWES -- - Evaluate and make tradeoffs
- Resourceful
AND ANSWERS WITH CORRECT
SOLUTIONS 100% GRADED A+
Top Management Team - CORRECT ANSWES -- - CEO (Investor relations, media,
customers)
- COO (Internal operations)
- CFO (Financial managers)
Operating Income - CORRECT ANSWES -- Revenue- Operating Costs
Net Income - CORRECT ANSWES -- Revenue - All Costs
Gross Margin % - CORRECT ANSWES -- (Revenue - Cost of Sales) / Revenue
Return on Assets - CORRECT ANSWES -- Net income / Total assets
Facebook - CORRECT ANSWES -- - Started as private, now traded on NASDAQ
(became public to raise capital)
- Advertisers looking for people interested in buying their products so they use data
analytics
- What do people do on online networks?
Profit - CORRECT ANSWES -- revenue - cost
WTP - CORRECT ANSWES -- (willingness to pay) creates value for customers
Corporate Ownership - CORRECT ANSWES -- - Represented by shares of stock
- No real limit to # of shareholders
- Market capitalization = market vale of a corporation = share price * # of shares
outstanding
Shareholder-Owners - CORRECT ANSWES -- - Ultimate owners
- Ltd. participation in mgt
Board of Directors - CORRECT ANSWES -- - Top level decision control
- Represents interest of corporation & shareholders
Corporate Governance - CORRECT ANSWES -- - Tries to align top level incentives and
partition decision rights to maximize shareholder value, protect shareholder's assets
, Apple's Value Drivers - CORRECT ANSWES -- - Consumers (Make products for
everyday use, strong in desktop, publishing, education)
- Quality (Easy to use, plug & play, industrial design)
- Service
- Reputation and brand
- Money making strategies (Operational excellence (low costs) & product leadership
(high quality))
PC Now vs. Then - CORRECT ANSWES -- - Then: stand alone productivity device
- Now: networked, communication device
Low Barriers to Entry - CORRECT ANSWES -- - Tech
- Components
- Plant/Location
- Distribution
- Customers
Substitutes - CORRECT ANSWES -- - Network computers
- PDA's, smartphones, other mobile devices
- TV set top boxes, video game consoles
Complements - CORRECT ANSWES -- - Applications/software
- Price decreased
- Functionality and # increased
- Customers WTP to pay for PC instead
Suppliers - CORRECT ANSWES -- 2 types
- Commodity suppliers (no real power over PC manufacturers)
- Monopolists (Microsoft and Intel)
Industry Conclusions - CORRECT ANSWES -- - Sophisticated buyers
- Vicious rivalry
- Low BoE
- Lots of substitutes
- Complements fueling demand
Assets - CORRECT ANSWES -- Liabilities + Stockholder's equity
Discrimination - CORRECT ANSWES -- - Labor Market Discrimination (when employer
makes decision based on observable characteristics)
- Taste-based Discrimination (discrimination based on personal preferences)
- Statistical Discrimination (firms have limited information, use demographics)
Models of Man: REMM - CORRECT ANSWES -- - Evaluate and make tradeoffs
- Resourceful
