MBA 701 EXAM QUESTIONS AND ANSWERS WITH
COMPLETE SOLUTIONS VERIFIED LATEST UPDATE
Economics
The science of making decisions in the presence of scarce resources.
Managerial: making these decisions to best accomplish a managerial goal
Resources
anything used to produce a good or service or achieve a goal.
Decisions are important because...
scarcity implies trade-offs
7 Principles of Effective Managerial Decision Making
1.Identify goals and constraints.
2.Recognize the nature and importance of profits.
3.Understand incentives.
4.Understand markets.
5.Recognize the time value of money.
6.Use marginal analysis.
7.Make data driven decisions.
Accounting profit
Total amount of money taken in from sales (total revenue) minus the dollar cost of
producing goods or services.
COMPLETE SOLUTIONS VERIFIED LATEST UPDATE
Economics
The science of making decisions in the presence of scarce resources.
Managerial: making these decisions to best accomplish a managerial goal
Resources
anything used to produce a good or service or achieve a goal.
Decisions are important because...
scarcity implies trade-offs
7 Principles of Effective Managerial Decision Making
1.Identify goals and constraints.
2.Recognize the nature and importance of profits.
3.Understand incentives.
4.Understand markets.
5.Recognize the time value of money.
6.Use marginal analysis.
7.Make data driven decisions.
Accounting profit
Total amount of money taken in from sales (total revenue) minus the dollar cost of
producing goods or services.
