MGT 100 FINAL EXAM QUESTIONS WITH CORRECT ANSWERS LATEST UPDATE 2025/2026

MGT 100 FINAL EXAM QUESTIONS WITH CORRECT ANSWERS LATEST UPDATE 2025/2026 Facebook - Answers - 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 - Answers revenue - cost WTP - Answers (willingness to pay) creates value for customers Corporate Ownership - Answers - 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 - Answers - Ultimate owners - Ltd. participation in mgt Board of Directors - Answers - Top level decision control - Represents interest of corporation & shareholders Corporate Governance - Answers - Tries to align top level incentives and partition decision rights to maximize shareholder value, protect shareholder's assets Top Management Team - Answers - CEO (Investor relations, media, customers) - COO (Internal operations) - CFO (Financial managers) Operating Income - Answers Revenue- Operating Costs Net Income - Answers Revenue - All Costs Gross Margin % - Answers (Revenue - Cost of Sales) / Revenue Return on Assets - Answers Net income / Total assets Apple's Value Drivers - Answers - 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 - Answers - Then: stand alone productivity device - Now: networked, communication device Low Barriers to Entry - Answers - Tech - Components - Plant/Location - Distribution - Customers Substitutes - Answers - Network computers - PDA's, smartphones, other mobile devices - TV set top boxes, video game consoles Complements - Answers - Applications/software - Price decreased - Functionality and # increased - Customers WTP to pay for PC instead Suppliers - Answers 2 types - Commodity suppliers (no real power over PC manufacturers) - Monopolists (Microsoft and Intel) Industry Conclusions - Answers - Sophisticated buyers - Vicious rivalry - Low BoE - Lots of substitutes - Complements fueling demand Assets - Answers Liabilities + Stockholder's equity Discrimination - Answers - 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 - Answers - Evaluate and make tradeoffs - Resourceful - Unlimited wants Models of Man: Economic Model - Answers - Money maximizer - Doesn't care for others, art, morality, love, respect Models of Man: Sociological Model - Answers - Social victim - Behavior is a product of the environment - Culture affects or determines behavior - Might look at changes in morals or social attitudes Models of Man: Psychological Model - Answers - "Hierarchy of needs" - No substitution between levels of needs