MGT 3013- Ronald Anderson - Exam 1
Questions and All Correct Answers
2025-2026 Updated.
Organization - Answer A group of people who work together to achieve some specific
purpose
Management - Answer 1. Pursuing goals Efficiently and Effectively
2. Integrating the work of people
3. Planning, organizing, leading, and controlling the organization's resources
Efficiency - Answer "the means" - the means of attaining an organization's goals
-use resources wisely and cost-effectively
Effectiveness - Answer "the ends" - achieve results, make decisions, and successfully carry
them out to achieve an organization's goals.
Multiplier effect - Answer Adding value that is multiplied throughout an organization that is
greater than the contribution of one person alone.
The 4 Principle Functions of Management - Answer POLC
Planning
Organizing
Leading
Controlling
Planning - Answer setting goals and deciding how to achieve them
Organizing - Answer arranging tasks, people and other resources to accomplish the work
Leading - Answer motivating, directing, and influencing people to work hard to achieve goals
Controlling - Answer monitoring performance, comparing it with goals, and taking corrective
action as needed.
,Competitive Advantage - Answer the ability to produce outcomes more EFFECTIVELY than
competitors
1. responsive to customers
2. innovation
3. quality
4. efficiency
2 Types of Differentiation - Answer 1. Preference for the firms output
2. Cost advantage
Preference for the Firm's Output - Answer Value added - people choose the firm's output
over others/people are willing to pay more/premium
Cost Advantage - Answer Lower Price - Lower COGS
*Just because a firm can lower their price, does NOT mean that they will -- markets are the only
thing putting pressure on prices.
Economies of Scale - Answer [Efficiency] put downward pressure on costs as output
increases (bulk buying)
Economies of Scope - Answer [Efficiency] reduced cost because of shared activities (similar
packaging sizes for cigarettes and mac & cheese - 1 delivery man - 1 dolly - shared activity)
Brand Name Recognition - Answer [Effectiveness] Association between brand and something
positive (Celebrity spokesperson, etc.)
Brand Loyalty - Answer [Effectiveness] the desire to pay more for the same product
(Switching costs)
Switching Costs - Answer costs that make customers reluctant to switch to another product
or service
Supply Channel - Answer [Efficiency & Effectiveness] Raw resources to end users (integrated
supply channel - downward pressure on costs OR flexible supply channel)
Integrated Supply Chain - Answer all the activities that organizations undertake to deliver
value to the customer, such as working with suppliers and distribution through convenient
channels
, Flexible Supply Chain - Answer Components of a supply system are produced in different
parts of the world then brought together to meet consumer needs, allowing companies to
choose from where they attain parts to produce goods.
Ability to Innovate - Answer taking a product [Effectiveness] or a process [Efficiency] and
creating new cash flow from that
-Innovating products increase prices
-Innovating processes decreases costs
Other examples of differentiation - Answer -Unique, Specialized, and Valuable Assets
-" operational technologies
-" relationships
Cash Flow - Answer the total amount of money being transferred into and out of a business,
especially as affecting liquidity.
Capital - Answer Financing (Loans), Equity (Stocks/Ownership), Retained Earnings (Previous
year's profits)
-the purpose of a capital investment is to increase cash flows
-only time capital should be used as a cash flow is in the case of a startup.
-capital investments = competitive advantage
-" that yield a better cash flow = better competitive advantage
Equity - Answer -Ownership/property
-Dividends
Debt - Answer -Interest
-Loans and Bonds
Retained Earnings - Answer -last year's after tax profit
-growth
Non-Competitive Market Strategies - Answer -demographic trends
-international events
-technological change
Questions and All Correct Answers
2025-2026 Updated.
Organization - Answer A group of people who work together to achieve some specific
purpose
Management - Answer 1. Pursuing goals Efficiently and Effectively
2. Integrating the work of people
3. Planning, organizing, leading, and controlling the organization's resources
Efficiency - Answer "the means" - the means of attaining an organization's goals
-use resources wisely and cost-effectively
Effectiveness - Answer "the ends" - achieve results, make decisions, and successfully carry
them out to achieve an organization's goals.
Multiplier effect - Answer Adding value that is multiplied throughout an organization that is
greater than the contribution of one person alone.
The 4 Principle Functions of Management - Answer POLC
Planning
Organizing
Leading
Controlling
Planning - Answer setting goals and deciding how to achieve them
Organizing - Answer arranging tasks, people and other resources to accomplish the work
Leading - Answer motivating, directing, and influencing people to work hard to achieve goals
Controlling - Answer monitoring performance, comparing it with goals, and taking corrective
action as needed.
,Competitive Advantage - Answer the ability to produce outcomes more EFFECTIVELY than
competitors
1. responsive to customers
2. innovation
3. quality
4. efficiency
2 Types of Differentiation - Answer 1. Preference for the firms output
2. Cost advantage
Preference for the Firm's Output - Answer Value added - people choose the firm's output
over others/people are willing to pay more/premium
Cost Advantage - Answer Lower Price - Lower COGS
*Just because a firm can lower their price, does NOT mean that they will -- markets are the only
thing putting pressure on prices.
Economies of Scale - Answer [Efficiency] put downward pressure on costs as output
increases (bulk buying)
Economies of Scope - Answer [Efficiency] reduced cost because of shared activities (similar
packaging sizes for cigarettes and mac & cheese - 1 delivery man - 1 dolly - shared activity)
Brand Name Recognition - Answer [Effectiveness] Association between brand and something
positive (Celebrity spokesperson, etc.)
Brand Loyalty - Answer [Effectiveness] the desire to pay more for the same product
(Switching costs)
Switching Costs - Answer costs that make customers reluctant to switch to another product
or service
Supply Channel - Answer [Efficiency & Effectiveness] Raw resources to end users (integrated
supply channel - downward pressure on costs OR flexible supply channel)
Integrated Supply Chain - Answer all the activities that organizations undertake to deliver
value to the customer, such as working with suppliers and distribution through convenient
channels
, Flexible Supply Chain - Answer Components of a supply system are produced in different
parts of the world then brought together to meet consumer needs, allowing companies to
choose from where they attain parts to produce goods.
Ability to Innovate - Answer taking a product [Effectiveness] or a process [Efficiency] and
creating new cash flow from that
-Innovating products increase prices
-Innovating processes decreases costs
Other examples of differentiation - Answer -Unique, Specialized, and Valuable Assets
-" operational technologies
-" relationships
Cash Flow - Answer the total amount of money being transferred into and out of a business,
especially as affecting liquidity.
Capital - Answer Financing (Loans), Equity (Stocks/Ownership), Retained Earnings (Previous
year's profits)
-the purpose of a capital investment is to increase cash flows
-only time capital should be used as a cash flow is in the case of a startup.
-capital investments = competitive advantage
-" that yield a better cash flow = better competitive advantage
Equity - Answer -Ownership/property
-Dividends
Debt - Answer -Interest
-Loans and Bonds
Retained Earnings - Answer -last year's after tax profit
-growth
Non-Competitive Market Strategies - Answer -demographic trends
-international events
-technological change
