MAN 4720 LATEST 2026 EVALUATION EXAM
QUESTIONS AND ANSWERS SURE A+
✔✔Adverse Selection - Definition - ✔✔Poor decisions due to lack of information before
a deal.
✔✔Example of Adverse Selection - ✔✔Buying a defective used car unknowingly.
✔✔Principal-Agent Problem - Definition - ✔✔Managers not acting in owners' best
interests.
✔✔Example of Principal-Agent Problem - ✔✔Executives focus on bonuses over long-
term growth.
✔✔Strategic Change - Definition - ✔✔Major shift in company direction.
✔✔Example of Strategic Change - ✔✔Netflix moving from DVDs to streaming.
✔✔Strategic Leadership - Definition - ✔✔Leaders influencing long-term strategy and
success.
✔✔Example of Strategic Leadership - ✔✔Satya Nadella shifting Microsoft to cloud
computing.
, ✔✔Top Management Team - Definition - ✔✔Senior executives responsible for strategy.
✔✔Example of Top Management Team - ✔✔CEO, CFO, COO working together on
decisions.
✔✔Managerial Succession - Definition - ✔✔Replacing top executives.
✔✔Example of Managerial Succession - ✔✔Planned CEO transitions for stability.
✔✔Managerial Discretion - Definition - ✔✔Degree of freedom managers have in
decisions.
✔✔Example of Managerial Discretion - ✔✔Tech CEOs have more flexibility than utility
managers.
✔✔Need for Achievement - Definition - ✔✔Desire to accomplish challenging goals.
✔✔Example of Need for Achievement - ✔✔Entrepreneurs driven to succeed.
✔✔Locus of Control - Definition - ✔✔Belief about control over outcomes.
✔✔Example of Locus of Control - ✔✔Entrepreneurs believe they control their success.
✔✔Risk-Taking Propensity - Definition - ✔✔Willingness to take risks.
✔✔Example of Risk-Taking Propensity - ✔✔Founders invest in uncertain startups.
✔✔Strategic Thinking - Definition - ✔✔Long-term, big-picture decision making.
✔✔Example of Strategic Thinking - ✔✔Planning expansion into new markets.
✔✔Managerial Thinking - Definition - ✔✔Focus on efficiency and daily operations.
✔✔Example of Managerial Thinking - ✔✔Improving workflows and productivity.
✔✔Entrepreneurial Thinking - Definition - ✔✔Innovation-focused, opportunity-seeking
mindset.
✔✔Example of Entrepreneurial Thinking - ✔✔Mark Zuckerberg creating Facebook.
✔✔Outside Director - Definition - ✔✔A board member who is not an employee of the
firm and provides independent oversight.
QUESTIONS AND ANSWERS SURE A+
✔✔Adverse Selection - Definition - ✔✔Poor decisions due to lack of information before
a deal.
✔✔Example of Adverse Selection - ✔✔Buying a defective used car unknowingly.
✔✔Principal-Agent Problem - Definition - ✔✔Managers not acting in owners' best
interests.
✔✔Example of Principal-Agent Problem - ✔✔Executives focus on bonuses over long-
term growth.
✔✔Strategic Change - Definition - ✔✔Major shift in company direction.
✔✔Example of Strategic Change - ✔✔Netflix moving from DVDs to streaming.
✔✔Strategic Leadership - Definition - ✔✔Leaders influencing long-term strategy and
success.
✔✔Example of Strategic Leadership - ✔✔Satya Nadella shifting Microsoft to cloud
computing.
, ✔✔Top Management Team - Definition - ✔✔Senior executives responsible for strategy.
✔✔Example of Top Management Team - ✔✔CEO, CFO, COO working together on
decisions.
✔✔Managerial Succession - Definition - ✔✔Replacing top executives.
✔✔Example of Managerial Succession - ✔✔Planned CEO transitions for stability.
✔✔Managerial Discretion - Definition - ✔✔Degree of freedom managers have in
decisions.
✔✔Example of Managerial Discretion - ✔✔Tech CEOs have more flexibility than utility
managers.
✔✔Need for Achievement - Definition - ✔✔Desire to accomplish challenging goals.
✔✔Example of Need for Achievement - ✔✔Entrepreneurs driven to succeed.
✔✔Locus of Control - Definition - ✔✔Belief about control over outcomes.
✔✔Example of Locus of Control - ✔✔Entrepreneurs believe they control their success.
✔✔Risk-Taking Propensity - Definition - ✔✔Willingness to take risks.
✔✔Example of Risk-Taking Propensity - ✔✔Founders invest in uncertain startups.
✔✔Strategic Thinking - Definition - ✔✔Long-term, big-picture decision making.
✔✔Example of Strategic Thinking - ✔✔Planning expansion into new markets.
✔✔Managerial Thinking - Definition - ✔✔Focus on efficiency and daily operations.
✔✔Example of Managerial Thinking - ✔✔Improving workflows and productivity.
✔✔Entrepreneurial Thinking - Definition - ✔✔Innovation-focused, opportunity-seeking
mindset.
✔✔Example of Entrepreneurial Thinking - ✔✔Mark Zuckerberg creating Facebook.
✔✔Outside Director - Definition - ✔✔A board member who is not an employee of the
firm and provides independent oversight.
