ARE 112- Midterm 1 Exam Questions and Answers 100% Verified!

MECE - ANSWER--Mutually Exclusive (each issue is separate & distinct) Collectively Exhaustive (every aspect comes under only one issue) -McKinsey Tool --know all the facts/details -guard against making early selection of solutions before all other facts are known Mother City - ANSWER--Caral, Peru; "mother city" of Incan civilization -complexity and scope -hierarchy of living arrangements -served as a major trade area --> rise of class divisions Transaction Costs - ANSWER--Williamson interview -cost associated with the time and effort needed to search out, negotiate, and consummate an exchange (cost of doing business) --must economize --have detailed knowledge of attributes of transactions Cost of Uncertainty - ANSWER--Williamson interview -making agreements in the context of uncertainty --hostage situation --develop bilateral dependency (mutual advantages) --introduces a kind of deterrence -reduce uncertainty --> reduce costs Bounded Rationality - ANSWER--Williamson interview -can't choose the convenient assumption --adhere closely to reality and behavior that intends to be rational -- not capable of maximizing in all situations --limitation on ability to work towards the right answer Incomplete contracts - ANSWER--Williamson interview -transaction costs, cost of uncertainty, and bounded rationality all cause incomplete contracts -cannot maximize all benefits of a transaction because they are not aware of all the factors --complex contracts --disallowed by old apparatus --both parties are not equal Genghis Khan management style - ANSWER--keep only the best people -- promote by ability NOT rank -looked after their needs -organized so no one in the dark --based on decimal system - easy to train --commands by hand signals and banners - communication -train, train, train -mission driven organization Dynastic Cycles - ANSWER--history driven organization - ruler unites under "mandate from heaven" -leads to prosperity -leads to population increases -leads to corruption -leads to no ability to respond to disasters -ruler loses "mandate from heaven" -leads to warring states emerging -leads to one victorious state -"manda