ARE 112 QUESTIONS WITH CORRECT
ANSWERS
MECE - CORRECT 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 - CORRECT 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 - CORRECT 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 - CORRECT 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 - CORRECT 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 - CORRECT 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 - CORRECT 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 - CORRECT ANSWER--history driven
organization
- ruler unites under "mandate from heaven"
ANSWERS
MECE - CORRECT 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 - CORRECT 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 - CORRECT 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 - CORRECT 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 - CORRECT 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 - CORRECT 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 - CORRECT 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 - CORRECT ANSWER--history driven
organization
- ruler unites under "mandate from heaven"
