MGT 100 MIDTERM 1 STUDY GUIDE
QUESTIONS COMPLETE WITH VERIFIED
ANSWERS
\.Nature of Man - ANSWERS✔-Methods/different lenses of analyzing scenarios in
the economy and in management
\.4 Kinds of Profit Firms - ANSWERS✔-Sole
Proprietorship/Partnerships/LLC/Corporations
\.Sole Proprietorship - ANSWERS✔-Most businesses in America are sole
proprietorships. Individuals are taxed, not the company. Responsible for all losses
and debts
\.Partnerships - ANSWERS✔-Same characteristics of a sole proprietorship--two
people.
\.LLC - ANSWERS✔-Limited Liability. Individuals in the LLC are taxed. No
shareholders.
\.Corporations - ANSWERS✔-Limited Liability (any loans are sole responsibility of
the company) not the people. Owned by shareholders. Taxed heavily
, \.REMM - ANSWERS✔-Every individual cares about everything (irrational). Willing
to make tradeoffs. Resourceful (can see changes in environment). Changing
preferences. Individual wants are UNLIMITED. Each individual is a utility
MAXIMIZER. If costs change, REMM man is affected.
\.Sociological Man - ANSWERS✔-Individuals view themselves as product of their
cultural environment; make decisions in accordance with this. Not evaluators. If
costs change, sociological man isn't affected.
\.Economic Man - ANSWERS✔-Only want is income. Short-run money maximizer.
(Reductive model of REMM). Reflects economists' desire for simplicity and
modeling--used as a foil by non-economists.
\.Psychological Man - ANSWERS✔-Human wants are arranged in the hierarchy of
needs. Behavior determined by roles, environment, and authority. Income effect:
if income falls, consumption decreases, and vice versa
\.Stanford Prison Experiment - ANSWERS✔-Prime example of psychological man--
people's actions were shaped by their roles and environment. Guards were jerks
to prisoners.
\.Hierarchy of Needs - ANSWERS✔-Maslow. Priorities of most important stuff
\.Political Man - ANSWERS✔-Unlike REMM, individual is a perfect agent who
evaluates resources, maximizes public goods over his own welfare.
QUESTIONS COMPLETE WITH VERIFIED
ANSWERS
\.Nature of Man - ANSWERS✔-Methods/different lenses of analyzing scenarios in
the economy and in management
\.4 Kinds of Profit Firms - ANSWERS✔-Sole
Proprietorship/Partnerships/LLC/Corporations
\.Sole Proprietorship - ANSWERS✔-Most businesses in America are sole
proprietorships. Individuals are taxed, not the company. Responsible for all losses
and debts
\.Partnerships - ANSWERS✔-Same characteristics of a sole proprietorship--two
people.
\.LLC - ANSWERS✔-Limited Liability. Individuals in the LLC are taxed. No
shareholders.
\.Corporations - ANSWERS✔-Limited Liability (any loans are sole responsibility of
the company) not the people. Owned by shareholders. Taxed heavily
, \.REMM - ANSWERS✔-Every individual cares about everything (irrational). Willing
to make tradeoffs. Resourceful (can see changes in environment). Changing
preferences. Individual wants are UNLIMITED. Each individual is a utility
MAXIMIZER. If costs change, REMM man is affected.
\.Sociological Man - ANSWERS✔-Individuals view themselves as product of their
cultural environment; make decisions in accordance with this. Not evaluators. If
costs change, sociological man isn't affected.
\.Economic Man - ANSWERS✔-Only want is income. Short-run money maximizer.
(Reductive model of REMM). Reflects economists' desire for simplicity and
modeling--used as a foil by non-economists.
\.Psychological Man - ANSWERS✔-Human wants are arranged in the hierarchy of
needs. Behavior determined by roles, environment, and authority. Income effect:
if income falls, consumption decreases, and vice versa
\.Stanford Prison Experiment - ANSWERS✔-Prime example of psychological man--
people's actions were shaped by their roles and environment. Guards were jerks
to prisoners.
\.Hierarchy of Needs - ANSWERS✔-Maslow. Priorities of most important stuff
\.Political Man - ANSWERS✔-Unlike REMM, individual is a perfect agent who
evaluates resources, maximizes public goods over his own welfare.
