BUSI 100 Midterm Exam Questions with Verified
Correct Answers
Equal transactions
benefit each other
Geographical proximity keeps people together even if controversial
Keep doing it if the relationship would benefit both sides
ex) Russia and Germany continuing to work together even though Russia is a bad guy
Foundations of trade
mutually beneficial
SMITH The natural advantages where one country focuses on what they have the advantage in it
makes sense to trade with one another it makes more sense than to make what does not belong to
their advantage
Each party has an absolute advantage
PLATO picks one thing to devote attention to and only produces that
Foundations of trade Plato and Smith
agree on the foundations of trade
Operation of the free market is essential not only to promote productive efficiency but to foster
harmony and peace among the peoples of the world
Smith- intends only his security, industry in such a manner as its produce may be of the greatest
value, he intends only his gain
Smith believes humans are never satisfied and humans always want more
,Why do firms exist and in what form are they most likely to become successful
a firm should be able to find the cheapest, most productive goods and services by contracting
them out in an efficient, open marketplace
Configurations of high-performance new ventures
Cofounder
Alliance partner
Employees
Benefactor- helps the company with nothing in return
Emotional support network
Serial founder
Product Expertise
Conflict triggers
frenzy
state or period of uncontrolled excitement or wild behavior
In his book, Walden, Thoreau argues that the eloquence of the orators' spoken language is
the most powerful form of communication
false
what does freedman believe
Freedman believes that all companies just have the goal to make the largest profit
What's the purpose of a corporation
, To benefit the shareholders
Martin bought an HIV drug and raised the prices by 1000%
He was able to do this because no one else could make it/sell it
How does this connect to our reading
it connects Friedman saying companies are in the business to make a profit when they should
also consider the people buying them and their finances
Why did he do it though (Martin)
talked to customers, lowered the price for customers, and released a smaller bottle making it
easier for hospitals to afford
And because shareholders like every other c company, and the shareholders are the ones who
want maximized profits, by law shareholders go first
Closed system
Closed systems have firm boundaries between the organization and the outside environment
martins next steps
He's gonna keep doing it because that's what capitalist America is all about, it's not supposed to
be anything it's about making the most money
Martin is a capitalist and so was a freedman
Maximize profit as long as you stay within the rules of the game
from an outsiders perspective on martin
Many ways to look at it, hate the government or Martin
Martin blames the government but individuals blame Martin
Correct Answers
Equal transactions
benefit each other
Geographical proximity keeps people together even if controversial
Keep doing it if the relationship would benefit both sides
ex) Russia and Germany continuing to work together even though Russia is a bad guy
Foundations of trade
mutually beneficial
SMITH The natural advantages where one country focuses on what they have the advantage in it
makes sense to trade with one another it makes more sense than to make what does not belong to
their advantage
Each party has an absolute advantage
PLATO picks one thing to devote attention to and only produces that
Foundations of trade Plato and Smith
agree on the foundations of trade
Operation of the free market is essential not only to promote productive efficiency but to foster
harmony and peace among the peoples of the world
Smith- intends only his security, industry in such a manner as its produce may be of the greatest
value, he intends only his gain
Smith believes humans are never satisfied and humans always want more
,Why do firms exist and in what form are they most likely to become successful
a firm should be able to find the cheapest, most productive goods and services by contracting
them out in an efficient, open marketplace
Configurations of high-performance new ventures
Cofounder
Alliance partner
Employees
Benefactor- helps the company with nothing in return
Emotional support network
Serial founder
Product Expertise
Conflict triggers
frenzy
state or period of uncontrolled excitement or wild behavior
In his book, Walden, Thoreau argues that the eloquence of the orators' spoken language is
the most powerful form of communication
false
what does freedman believe
Freedman believes that all companies just have the goal to make the largest profit
What's the purpose of a corporation
, To benefit the shareholders
Martin bought an HIV drug and raised the prices by 1000%
He was able to do this because no one else could make it/sell it
How does this connect to our reading
it connects Friedman saying companies are in the business to make a profit when they should
also consider the people buying them and their finances
Why did he do it though (Martin)
talked to customers, lowered the price for customers, and released a smaller bottle making it
easier for hospitals to afford
And because shareholders like every other c company, and the shareholders are the ones who
want maximized profits, by law shareholders go first
Closed system
Closed systems have firm boundaries between the organization and the outside environment
martins next steps
He's gonna keep doing it because that's what capitalist America is all about, it's not supposed to
be anything it's about making the most money
Martin is a capitalist and so was a freedman
Maximize profit as long as you stay within the rules of the game
from an outsiders perspective on martin
Many ways to look at it, hate the government or Martin
Martin blames the government but individuals blame Martin
