MGMT1000 EXAM QUESTIONS WITH
ALL CORRECT ANSWERS
Definition of Risk - Answer- Risk, n. (Exposure to) the possibility of loss, injury, or other
adverse or unwelcome circumstance; a chance or situation involving such a possibility.
The possibility of financial loss or failure as a quantifiable factor in evaluating the
potential profit in a commercial enterprise or investment.
five possible courses of action regarding risk - Answer- Avoid Risk -Pretty much what it
sounds like. If you want to avoid the possibility of having E. coli in the meat you eat,
don't eat meat.
Accept Risk- Again, pretty much what it sounds like. When I was in university, I went
sky diving a few times. I accepted the risk that there was a higher probability of dying
skydiving on any given day than not doing that activity on the same day. Of course,
there was also an element of. . .
Reduce Risk- I mitigated the risk as much as possible by taking some formal training,
going to a certified skydiving school, etc. [Mitigate, v. to make less severe, serious or
painful].
Share Risk- In this case, the risk is shared among several participants. A joint venture
(JV)—where two or more companies join together to form a new venture—is an
example of risk sharing. If the JV fails, the loss to an individual company will be less
than if they hadn't shared the risk.
Transfer Risk- When you buy insurance you transfer the risk to the insurance company.
They are then on the hook for damages if the loss occurs. Insurance companies higher
actuaries who deal in probabilities to assess risk.
Take-back Programs - Answer- example, when you purchase an H-P laser printer toner
cartridge, the box is designed to allow you to box up and seal your old, empty cartridge.
A pre-paid postage label allows you to ship the old cartridge back to H-P at no expense
to yourself.
Cradle-to-Cradle - Answer- s a design philosophy whereby "products should be de-
signed for eventual reuse in another product or be used by nature" (Epstein, 2008, p.
209). That is, once a product reaches the end of its normal life, either it goes back to
earth—returns to the soil, OR it goes back to industry.
Bottom of the Pyramid - Answer- It is easy (relatively speaking) for consumer products
companies like Proctor & Gamble and Unilever to sell things like toothpaste and
shampoo in the developed world where incomes are high. What C. K. Prahalad from the
University of Michigan argues is that the "Bottom of the Pyramid"—the billions of people
he calls the aspiring poor—that is the real growth opportunity for multi-national
corporations.
, purpose of sustainability - Answer- the practice of measuring, disclosing, and being
accountable to internal and external stakeholders for organizational performance
towards the goal of sustainable development. 'Sustainability reporting' is a broad term
considered synonymous with others used to describe reporting on economic,
environmental, and social impacts (e.g., triple bottom line, corporate responsibility
reporting, etc.). A sustainability report should provide a balanced and reasonable
representation of the sustainability performance of a reporting organization—including
both positive and negative contributions"
Transformed Resources - Answer- those that are transformed in some way by the
operation to produce the goods or services that are its outputs
Transforming Resources - Answer- those that are used to perform the transformation
process.
transformation process - Answer- is any activity or group of activities that takes one or
more inputs, transforms and adds value to them, and provides outputs for customers or
clients. Where the inputs are raw materials, it is relatively easy to identify the
transformation involved, as when milk is transformed into cheese and butter.
Transformation processes include - Answer- • changes in the physical characteristics of
materials or customers • changes in the location of materials, information or customers
• changes in the ownership of materials or information
• storage or accommodation of materials, information or customers • changes in the
purpose or form of information
• changes in the physiological or psychological state of customers.
Feedback information - Answer- is used to control the operations system, by adjusting
the inputs and transformation processes that are used to achieve desired outputs. For
example, a chef relies on a flow of information from the customer, through the waiter,
about the quality of the food.
nine Biggest Problems facing the world are: - Answer- 1. Poverty, Hunger And Lack Of
Drinking Water
2. Climate Change
3. The Economic Situation
4. International Terrorism
6. The Increasing Global Population
7. Spread Of Infectious Disease (tie)
8. Armed Conflict (tie)
9. Proliferation Of Nuclear Weapons
5. Availability Of Energy
System - Answer- -An organized or connected group of objects
ALL CORRECT ANSWERS
Definition of Risk - Answer- Risk, n. (Exposure to) the possibility of loss, injury, or other
adverse or unwelcome circumstance; a chance or situation involving such a possibility.
The possibility of financial loss or failure as a quantifiable factor in evaluating the
potential profit in a commercial enterprise or investment.
five possible courses of action regarding risk - Answer- Avoid Risk -Pretty much what it
sounds like. If you want to avoid the possibility of having E. coli in the meat you eat,
don't eat meat.
Accept Risk- Again, pretty much what it sounds like. When I was in university, I went
sky diving a few times. I accepted the risk that there was a higher probability of dying
skydiving on any given day than not doing that activity on the same day. Of course,
there was also an element of. . .
Reduce Risk- I mitigated the risk as much as possible by taking some formal training,
going to a certified skydiving school, etc. [Mitigate, v. to make less severe, serious or
painful].
Share Risk- In this case, the risk is shared among several participants. A joint venture
(JV)—where two or more companies join together to form a new venture—is an
example of risk sharing. If the JV fails, the loss to an individual company will be less
than if they hadn't shared the risk.
Transfer Risk- When you buy insurance you transfer the risk to the insurance company.
They are then on the hook for damages if the loss occurs. Insurance companies higher
actuaries who deal in probabilities to assess risk.
Take-back Programs - Answer- example, when you purchase an H-P laser printer toner
cartridge, the box is designed to allow you to box up and seal your old, empty cartridge.
A pre-paid postage label allows you to ship the old cartridge back to H-P at no expense
to yourself.
Cradle-to-Cradle - Answer- s a design philosophy whereby "products should be de-
signed for eventual reuse in another product or be used by nature" (Epstein, 2008, p.
209). That is, once a product reaches the end of its normal life, either it goes back to
earth—returns to the soil, OR it goes back to industry.
Bottom of the Pyramid - Answer- It is easy (relatively speaking) for consumer products
companies like Proctor & Gamble and Unilever to sell things like toothpaste and
shampoo in the developed world where incomes are high. What C. K. Prahalad from the
University of Michigan argues is that the "Bottom of the Pyramid"—the billions of people
he calls the aspiring poor—that is the real growth opportunity for multi-national
corporations.
, purpose of sustainability - Answer- the practice of measuring, disclosing, and being
accountable to internal and external stakeholders for organizational performance
towards the goal of sustainable development. 'Sustainability reporting' is a broad term
considered synonymous with others used to describe reporting on economic,
environmental, and social impacts (e.g., triple bottom line, corporate responsibility
reporting, etc.). A sustainability report should provide a balanced and reasonable
representation of the sustainability performance of a reporting organization—including
both positive and negative contributions"
Transformed Resources - Answer- those that are transformed in some way by the
operation to produce the goods or services that are its outputs
Transforming Resources - Answer- those that are used to perform the transformation
process.
transformation process - Answer- is any activity or group of activities that takes one or
more inputs, transforms and adds value to them, and provides outputs for customers or
clients. Where the inputs are raw materials, it is relatively easy to identify the
transformation involved, as when milk is transformed into cheese and butter.
Transformation processes include - Answer- • changes in the physical characteristics of
materials or customers • changes in the location of materials, information or customers
• changes in the ownership of materials or information
• storage or accommodation of materials, information or customers • changes in the
purpose or form of information
• changes in the physiological or psychological state of customers.
Feedback information - Answer- is used to control the operations system, by adjusting
the inputs and transformation processes that are used to achieve desired outputs. For
example, a chef relies on a flow of information from the customer, through the waiter,
about the quality of the food.
nine Biggest Problems facing the world are: - Answer- 1. Poverty, Hunger And Lack Of
Drinking Water
2. Climate Change
3. The Economic Situation
4. International Terrorism
6. The Increasing Global Population
7. Spread Of Infectious Disease (tie)
8. Armed Conflict (tie)
9. Proliferation Of Nuclear Weapons
5. Availability Of Energy
System - Answer- -An organized or connected group of objects
