BUSI 301 TOP EXAM QUESTIONS
AND ANSWERS 2026 COMPLETE
EXAM PREP WITH VERIFIED
SOLUTIONS
◉ Iceberg Model.
Answer: Events (visible) sit above Patterns → Structures → Mental
Models (deepest, hardest to change).
◉ Homo Economicus.
Answer: Dominant mental model: humans are purely rational, self-
interested utility maximizers.
◉ Shareholder Primacy.
Answer: Friedman: firm's only duty = maximize shareholder returns.
◉ Short-termism.
Answer: Focus on quarterly earnings over long-term value creation.
◉ Hyper-individualism.
Answer: Mental model that sees humans/firms as isolated actors,
ignoring relational and systemic interdependence.
◉ What needs to change.
, Answer: Shift from: shareholder → stakeholder; short-term → long-
term; extractive → regenerative; transactional → relational; linear →
circular; GDP growth → wellbeing/flourishing.
◉ Shareholder Theory.
Answer: Friedman (1970): firms exist to maximize profit for owners.
◉ Stakeholder Theory.
Answer: Freeman: firms owe obligations to ALL affected parties —
employees, customers, suppliers, community, environment.
◉ CSR.
Answer: Corporate Social Responsibility — voluntary actions beyond
legal compliance.
◉ Why it matters.
Answer: Shareholder primacy → externalize costs, ignore
social/environmental damage, race to bottom.
◉ What to move toward.
Answer: Purpose-driven business; 'Capitalism Recoupled' (Kelly &
Snower); business as a force for good AND profit.
◉ V2B Framework.
AND ANSWERS 2026 COMPLETE
EXAM PREP WITH VERIFIED
SOLUTIONS
◉ Iceberg Model.
Answer: Events (visible) sit above Patterns → Structures → Mental
Models (deepest, hardest to change).
◉ Homo Economicus.
Answer: Dominant mental model: humans are purely rational, self-
interested utility maximizers.
◉ Shareholder Primacy.
Answer: Friedman: firm's only duty = maximize shareholder returns.
◉ Short-termism.
Answer: Focus on quarterly earnings over long-term value creation.
◉ Hyper-individualism.
Answer: Mental model that sees humans/firms as isolated actors,
ignoring relational and systemic interdependence.
◉ What needs to change.
, Answer: Shift from: shareholder → stakeholder; short-term → long-
term; extractive → regenerative; transactional → relational; linear →
circular; GDP growth → wellbeing/flourishing.
◉ Shareholder Theory.
Answer: Friedman (1970): firms exist to maximize profit for owners.
◉ Stakeholder Theory.
Answer: Freeman: firms owe obligations to ALL affected parties —
employees, customers, suppliers, community, environment.
◉ CSR.
Answer: Corporate Social Responsibility — voluntary actions beyond
legal compliance.
◉ Why it matters.
Answer: Shareholder primacy → externalize costs, ignore
social/environmental damage, race to bottom.
◉ What to move toward.
Answer: Purpose-driven business; 'Capitalism Recoupled' (Kelly &
Snower); business as a force for good AND profit.
◉ V2B Framework.
