Mgt 100 Exam 1 With Correct Answers
Equation dfor dOperating dIncome d- dCORRECT✅✅Revenue d- dOperating dCosts
d(COS, dR&D, dSGA)
Equation dfor dNet dIncome d- dCORRECT✅✅Revenue- dall dcosts d(including dtaxes,
dinterest, done dtime dcost)
Equation dfor dGross dMargin d% d- dCORRECT✅✅(Revenue- dCost dof dsales)/
drevenue
Equation dfor dReturn don dAssets d- dCORRECT✅✅net dincome/ dtotal dassets
bull dmarket d- dCORRECT✅✅economy dis dgreat, dstock dprices dare drising
bear dmarket d- dCORRECT✅✅economy dis dbad dand drecession dis dlooming
Equation dfor dprofit d- dCORRECT✅✅price- dcost
corporate dgovernance d- dCORRECT✅✅ties dto dalign dtop dlevel dincentives dand
ddecision drights dto dmaximize dshareholder dvalue, dprotect dshareholder dassets, dand
dproduce dfinancial dstatements dthe dmeet dlegal drequirements d
Give dmanagement dstake din dcompany dso dthey dwill dlook dat dfor dshareholder dvalue
dalong dwith dtheir down
Apple's d10k dand dproxy d- dCORRECT✅✅a. dProxy
i. dDecrease din dnet dsales dand doperating dincome dsince d2005 d(but dincrease dsince
d2014)
ii. dInformation dabout dboard dmembers dand dtheir dpositions dand dcompensation
iii. dProposals dpeople dwill dbe dvoting don
b. d10k
i. dFuture dlooking dstatements
ii. dProducts dand dservices dsales ddata
Jensen dand dMeckling: dThe dNature dof dMan d- dCORRECT✅✅5 dmodels dof dhuman
dbehavior: d
REMM= dresourceful, devaluative, dmaximizing dmodel d- dno dneeds dbut dunlimited
dwants, dcares dabout deverything, dwilling dto dmake dtrade doffs d/ dsubstitutions, dwants
dto dmaximize, dcreative d(in dtrying dto davoid dconstraints), dneed dgovernment dto
drestore dequilibrium
Economic= dmoney dmaximizing d(short drun) d- donly dwant dmoney dincome
, Sociological= dbehavior dis dproduct dof denvironment- dindividuals dare dsocial dvictims,
ddoes dnot dexplain dwhy dcustoms dchange d(cannot daccount dfor dchanges din dhuman
dbehavior), dresults dare ddue dto denvironmental deffort dnot dan dindividual's dconscious
deffort d(i.e. dsomeone dsteals dbecause dsociety dmade dhim da dthief)- dindividuals
dbehave das dexpected dfor dmarxist dmodel d(do dnot devaluate dsituations)
Psychological= dMaslow's dhierarchy dof dneeds d(physiological, dsafety, dlove, dself-
actualization), dno dsubstitution, dunwilling dto dgive dup da dmore dimportant ditem dto
dsatisfy da dhigher ditem)- dpeople ddo dnot dfollow dthis d(examples dfrom dOB dliterature)
Political= dREM, dmaximize dpublic dgood dv down dwelfare, dindividual dis da dperfect
dagent dseeking dto dmaximize dpublic dgood d(denies dhis down dpreferences)- dwould djust
dreplace da dmanager dthat dis ddoing da dbad djob
REMM ddominates dall dother dmodels
Buzzwords: d5 dmodels dof dbehavior d(names), dsocial dvictims, dmaximizing, dneeds/
dwants
assets d- dCORRECT✅✅things dyou down dand dcontrol d(you down dlollipop)
on dbalance dsheet: dassets= dliabilities+ dshareholder dequity
liabilities d- dCORRECT✅✅obligations dthat dyou dneed dto dpay dto dother dppl d(you
dowe dsally dlollipops)
equity d- dCORRECT✅✅ownership din dcompany
5 dforces danalysis d- dCORRECT✅✅buyers, dcompetition, dentry dbarriers, dsubstitutes,
dsuppliers
applies dto dapple
1980: dgreat dcustomers: dweak, dfragmented, dwilling dto dpay dhigh dprice dfor dbrand
1997: ddifficult, dpowerful dconsumers: dknow dwhat dthey dwant dand ddon't dwant dto dpay
da dlot
jensen's dtriangle d- dCORRECT✅✅rewards/punishments d- ddecision drights d-
dperformance dmeasures
demand dshifters d- dCORRECT✅✅# dof dbuyers, dincome, dprice dof dcomplements/
dsubstitutes, dtastes, dexpectations d
NOT dchange din dprice dof dthat dgood dacronym: dBITERS d(buyers, dincome, dtaste,
dexpectations, drelated dgoods)
supply dshifters d- dCORRECT✅✅input dprices, dtechnology, d# dsellers, dexpectations
d(when dexpect dfuture drise din dprice, dreduct dsupply dnow)
NOT dchange din dprice dof dthat dgood dacronym: dTONERS d(tech, dother dgoods,
dnumber dof dsellers, dexpectations, dresearch dcost, dsubsidies/taxes)
hub dand dspoke dsystem d- dCORRECT✅✅local dairports doffer dflights dto da dcentral
dairport dwhere dinternational dor dlong-distance dflights dare davailable
system dmost dairlines duse d(not dsouthwest)
Equation dfor dOperating dIncome d- dCORRECT✅✅Revenue d- dOperating dCosts
d(COS, dR&D, dSGA)
Equation dfor dNet dIncome d- dCORRECT✅✅Revenue- dall dcosts d(including dtaxes,
dinterest, done dtime dcost)
Equation dfor dGross dMargin d% d- dCORRECT✅✅(Revenue- dCost dof dsales)/
drevenue
Equation dfor dReturn don dAssets d- dCORRECT✅✅net dincome/ dtotal dassets
bull dmarket d- dCORRECT✅✅economy dis dgreat, dstock dprices dare drising
bear dmarket d- dCORRECT✅✅economy dis dbad dand drecession dis dlooming
Equation dfor dprofit d- dCORRECT✅✅price- dcost
corporate dgovernance d- dCORRECT✅✅ties dto dalign dtop dlevel dincentives dand
ddecision drights dto dmaximize dshareholder dvalue, dprotect dshareholder dassets, dand
dproduce dfinancial dstatements dthe dmeet dlegal drequirements d
Give dmanagement dstake din dcompany dso dthey dwill dlook dat dfor dshareholder dvalue
dalong dwith dtheir down
Apple's d10k dand dproxy d- dCORRECT✅✅a. dProxy
i. dDecrease din dnet dsales dand doperating dincome dsince d2005 d(but dincrease dsince
d2014)
ii. dInformation dabout dboard dmembers dand dtheir dpositions dand dcompensation
iii. dProposals dpeople dwill dbe dvoting don
b. d10k
i. dFuture dlooking dstatements
ii. dProducts dand dservices dsales ddata
Jensen dand dMeckling: dThe dNature dof dMan d- dCORRECT✅✅5 dmodels dof dhuman
dbehavior: d
REMM= dresourceful, devaluative, dmaximizing dmodel d- dno dneeds dbut dunlimited
dwants, dcares dabout deverything, dwilling dto dmake dtrade doffs d/ dsubstitutions, dwants
dto dmaximize, dcreative d(in dtrying dto davoid dconstraints), dneed dgovernment dto
drestore dequilibrium
Economic= dmoney dmaximizing d(short drun) d- donly dwant dmoney dincome
, Sociological= dbehavior dis dproduct dof denvironment- dindividuals dare dsocial dvictims,
ddoes dnot dexplain dwhy dcustoms dchange d(cannot daccount dfor dchanges din dhuman
dbehavior), dresults dare ddue dto denvironmental deffort dnot dan dindividual's dconscious
deffort d(i.e. dsomeone dsteals dbecause dsociety dmade dhim da dthief)- dindividuals
dbehave das dexpected dfor dmarxist dmodel d(do dnot devaluate dsituations)
Psychological= dMaslow's dhierarchy dof dneeds d(physiological, dsafety, dlove, dself-
actualization), dno dsubstitution, dunwilling dto dgive dup da dmore dimportant ditem dto
dsatisfy da dhigher ditem)- dpeople ddo dnot dfollow dthis d(examples dfrom dOB dliterature)
Political= dREM, dmaximize dpublic dgood dv down dwelfare, dindividual dis da dperfect
dagent dseeking dto dmaximize dpublic dgood d(denies dhis down dpreferences)- dwould djust
dreplace da dmanager dthat dis ddoing da dbad djob
REMM ddominates dall dother dmodels
Buzzwords: d5 dmodels dof dbehavior d(names), dsocial dvictims, dmaximizing, dneeds/
dwants
assets d- dCORRECT✅✅things dyou down dand dcontrol d(you down dlollipop)
on dbalance dsheet: dassets= dliabilities+ dshareholder dequity
liabilities d- dCORRECT✅✅obligations dthat dyou dneed dto dpay dto dother dppl d(you
dowe dsally dlollipops)
equity d- dCORRECT✅✅ownership din dcompany
5 dforces danalysis d- dCORRECT✅✅buyers, dcompetition, dentry dbarriers, dsubstitutes,
dsuppliers
applies dto dapple
1980: dgreat dcustomers: dweak, dfragmented, dwilling dto dpay dhigh dprice dfor dbrand
1997: ddifficult, dpowerful dconsumers: dknow dwhat dthey dwant dand ddon't dwant dto dpay
da dlot
jensen's dtriangle d- dCORRECT✅✅rewards/punishments d- ddecision drights d-
dperformance dmeasures
demand dshifters d- dCORRECT✅✅# dof dbuyers, dincome, dprice dof dcomplements/
dsubstitutes, dtastes, dexpectations d
NOT dchange din dprice dof dthat dgood dacronym: dBITERS d(buyers, dincome, dtaste,
dexpectations, drelated dgoods)
supply dshifters d- dCORRECT✅✅input dprices, dtechnology, d# dsellers, dexpectations
d(when dexpect dfuture drise din dprice, dreduct dsupply dnow)
NOT dchange din dprice dof dthat dgood dacronym: dTONERS d(tech, dother dgoods,
dnumber dof dsellers, dexpectations, dresearch dcost, dsubsidies/taxes)
hub dand dspoke dsystem d- dCORRECT✅✅local dairports doffer dflights dto da dcentral
dairport dwhere dinternational dor dlong-distance dflights dare davailable
system dmost dairlines duse d(not dsouthwest)
