ARE 112 Midterm Lundblad 2025/2026
Exam Questions and Answers | A+
Score Assured
Mother city-Caral, Peru - 🧠ANSWER ✔✔"mother city" of incan civilization.
Served as major trade area. Hierarchy of living arrangements. Cities were
formed for commerce rather than defensive purposes. Our DNA is made to
compete and cooperate this is the same as businesses in supply chains.
Transaction costs - 🧠ANSWER ✔✔cost associated with the time and effort
needed to search out, negotiate, and consummate an exchange (cost of
doing business). (get rid of costs you don't need)
Cost of uncertainty - 🧠ANSWER ✔✔making agreements in the context of
uncertainty. Ex: buying insurance for a car because you never know if your
car will get in a accident, broken into, or pulled over. The price of insurance
,adds to the price of the car. This means the Cost of Uncertanity adds to the
transaction cost.
Bounded rationality - 🧠ANSWER ✔✔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 toward the right answer. Not buying lundblads car because its been in
numerous accidents and lundblad did a bad job of taking of the car.
Incomplete contracts - 🧠ANSWER ✔✔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.
Buy lundblads car for $1,000 but its only worth $700
Characteristics of Genghis Kahn management style - 🧠ANSWER ✔✔Keep
only the best people, promote by ability not rank, looked after their needs,
organize so that no one is in the dark, based on the decimal system- easy
to train, commands by hand signals and banners and drums so everyone
knew what they needed to know, communications. Mission driven
organization
, Characteristics of the Wild West management styl - 🧠ANSWER
✔✔opportunity driven organization, much like the "startups" of today,
access to resources, aspect of inevitability, success supplants survival as
mission.
Ringmaster or ringleader - 🧠ANSWER ✔✔sets the pace for the
organization, The Circus- everyone knows what they are supposed to do,
everyone has a different task, the audience plays a part, a market driven
organization.
Classical management and its characteristics - 🧠ANSWER
✔✔Management style that has Executives (Markets, products, suppliers,
customers, capital expenditures), Managers (Labor levels, buffers stocks,
line balancing, training system), Supervisors (Scheduling work, crew
assignments maintenance schedule, and production rates) and workers
(doing the work). Careful selection and training of workers
Scientific management (aka Taylorism) - 🧠ANSWER ✔✔Design jobs with
standards leading to efficiency
Select workers to fit the job design
Train works to follow the design
3
COPYRIGHT©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
STATEMENT. ALL RIGHTS RESERVED
Exam Questions and Answers | A+
Score Assured
Mother city-Caral, Peru - 🧠ANSWER ✔✔"mother city" of incan civilization.
Served as major trade area. Hierarchy of living arrangements. Cities were
formed for commerce rather than defensive purposes. Our DNA is made to
compete and cooperate this is the same as businesses in supply chains.
Transaction costs - 🧠ANSWER ✔✔cost associated with the time and effort
needed to search out, negotiate, and consummate an exchange (cost of
doing business). (get rid of costs you don't need)
Cost of uncertainty - 🧠ANSWER ✔✔making agreements in the context of
uncertainty. Ex: buying insurance for a car because you never know if your
car will get in a accident, broken into, or pulled over. The price of insurance
,adds to the price of the car. This means the Cost of Uncertanity adds to the
transaction cost.
Bounded rationality - 🧠ANSWER ✔✔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 toward the right answer. Not buying lundblads car because its been in
numerous accidents and lundblad did a bad job of taking of the car.
Incomplete contracts - 🧠ANSWER ✔✔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.
Buy lundblads car for $1,000 but its only worth $700
Characteristics of Genghis Kahn management style - 🧠ANSWER ✔✔Keep
only the best people, promote by ability not rank, looked after their needs,
organize so that no one is in the dark, based on the decimal system- easy
to train, commands by hand signals and banners and drums so everyone
knew what they needed to know, communications. Mission driven
organization
, Characteristics of the Wild West management styl - 🧠ANSWER
✔✔opportunity driven organization, much like the "startups" of today,
access to resources, aspect of inevitability, success supplants survival as
mission.
Ringmaster or ringleader - 🧠ANSWER ✔✔sets the pace for the
organization, The Circus- everyone knows what they are supposed to do,
everyone has a different task, the audience plays a part, a market driven
organization.
Classical management and its characteristics - 🧠ANSWER
✔✔Management style that has Executives (Markets, products, suppliers,
customers, capital expenditures), Managers (Labor levels, buffers stocks,
line balancing, training system), Supervisors (Scheduling work, crew
assignments maintenance schedule, and production rates) and workers
(doing the work). Careful selection and training of workers
Scientific management (aka Taylorism) - 🧠ANSWER ✔✔Design jobs with
standards leading to efficiency
Select workers to fit the job design
Train works to follow the design
3
COPYRIGHT©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
STATEMENT. ALL RIGHTS RESERVED
