MGT 100 Test UPDATED ACTUAL Exam
Questions and CORRECT Answers
Porters 5 forces - CORRECT ANSWER - Barriers to Entry
Power of Suppliers
Power of Buyers
Threat of Substitutes
Rivalry
What compiles sustainable competitive advantage - CORRECT ANSWER - Superior
market position
isolating mechanisms
What are all of the value drivers - CORRECT ANSWER - technology, quality, service,
breadth of line, brand/reputation, geography, network externalities, customization, environmental
policy, risk assumption, complements
Cost Drivers - CORRECT ANSWER - Economies of scale, economies of slope, vertical
integration, learning curve, low input costs, dedicated assets, organizational practices
What increases customer retention and switching costs - CORRECT ANSWER - Learning
costs, transition costs, and search costs
What mitigates the risk of imitation - CORRECT ANSWER - property rights, dedicated
assets, sunk costs, and casual ambiguity
Generic Competitive Advantage Strategies - CORRECT ANSWER - Differentiator-invests
in high value
cost leader-invests in low costs
SIM-stuck in the middle of the two, target is the example of the company who makes this work
, Market Position - CORRECT ANSWER - This is defined by value and cost drivers
Isolating Mechanisms - CORRECT ANSWER - Retaining customers and preventing
imitation
3 Factors that determine profitability - CORRECT ANSWER - 1. Firms Market Position
2. Macroeconomic factors
3. Industry factors
Examples of Intellectual Property - CORRECT ANSWER - Intangible Property: patents,
copyrights, trademarks, and trade secrets
Pro argument for IP - CORRECT ANSWER - It is a necessary evil that creates
monopolies, but it is needed for firms to undergo R and D, and it also creates innovation
Con argument for IP - CORRECT ANSWER - Competition is good and produces the best
goods. The best scientific goods produced do not need to be protected.
Production measure of GDP - CORRECT ANSWER - the number of goods produced in
the economy
Expenditure measure of GDP - CORRECT ANSWER - The value of the goods and
services purchased by households and by government, investment in machinery and buildings. It
also includes the value of exports minus imports. Calculation is as follows: GDP=C+I+G+X-M
Income Measure of GDP - CORRECT ANSWER - All the income earned in the economy
Potential Output - CORRECT ANSWER - Measure of how per capita GDP would evolve
with completely flexible prices and fully employed resources
Questions and CORRECT Answers
Porters 5 forces - CORRECT ANSWER - Barriers to Entry
Power of Suppliers
Power of Buyers
Threat of Substitutes
Rivalry
What compiles sustainable competitive advantage - CORRECT ANSWER - Superior
market position
isolating mechanisms
What are all of the value drivers - CORRECT ANSWER - technology, quality, service,
breadth of line, brand/reputation, geography, network externalities, customization, environmental
policy, risk assumption, complements
Cost Drivers - CORRECT ANSWER - Economies of scale, economies of slope, vertical
integration, learning curve, low input costs, dedicated assets, organizational practices
What increases customer retention and switching costs - CORRECT ANSWER - Learning
costs, transition costs, and search costs
What mitigates the risk of imitation - CORRECT ANSWER - property rights, dedicated
assets, sunk costs, and casual ambiguity
Generic Competitive Advantage Strategies - CORRECT ANSWER - Differentiator-invests
in high value
cost leader-invests in low costs
SIM-stuck in the middle of the two, target is the example of the company who makes this work
, Market Position - CORRECT ANSWER - This is defined by value and cost drivers
Isolating Mechanisms - CORRECT ANSWER - Retaining customers and preventing
imitation
3 Factors that determine profitability - CORRECT ANSWER - 1. Firms Market Position
2. Macroeconomic factors
3. Industry factors
Examples of Intellectual Property - CORRECT ANSWER - Intangible Property: patents,
copyrights, trademarks, and trade secrets
Pro argument for IP - CORRECT ANSWER - It is a necessary evil that creates
monopolies, but it is needed for firms to undergo R and D, and it also creates innovation
Con argument for IP - CORRECT ANSWER - Competition is good and produces the best
goods. The best scientific goods produced do not need to be protected.
Production measure of GDP - CORRECT ANSWER - the number of goods produced in
the economy
Expenditure measure of GDP - CORRECT ANSWER - The value of the goods and
services purchased by households and by government, investment in machinery and buildings. It
also includes the value of exports minus imports. Calculation is as follows: GDP=C+I+G+X-M
Income Measure of GDP - CORRECT ANSWER - All the income earned in the economy
Potential Output - CORRECT ANSWER - Measure of how per capita GDP would evolve
with completely flexible prices and fully employed resources
