MAN 4720 EXAM 2 FSU QUESTIONS AND CORRECT
DETAILED ANSWERS (VERIFIED ANSWERS) ALREADY
GRADED A+
Value Ans✓✓✓The dollar amount (V) a consumer would attach to a
good or service; the consumers maximum willingness to pay; sometimes
also called reservation price
Economic Value Created Ans✓✓✓Difference between value (V) and
Cost (C), or (V-C); sometimes also called economic contribution
Profit (Producers surplus) Ans✓✓✓Difference between price charged
(P) and the cost to produce (C), or (P-C)
Consumer Surplus Ans✓✓✓Difference between the value a consumer
attaches to a good or service (V) and what he or she paid for it (P), or
(V-P)
Opportunity Costs Ans✓✓✓The value of the best forgone alternative
use of the resources employed
Risk Capital Ans✓✓✓Capital provided by shareholders in exchange for
an equity share in a company; it cannot be recovered if the firm goes
bankrupt
, Total Return To Shareholders Ans✓✓✓Return on risk capital that
includes stock price appreciation plus dividends received over a specific
period
Balanced Scorecard Ans✓✓✓Strategy implementation tool that
harnesses multiple internal and external performance metrics in order to
balance financial and strategic goals
Triple Bottom Line Ans✓✓✓Combination of economic, social, and
ecological concerns that can lead to a sustainable strategy
Corporate Level Strategy Ans✓✓✓The decisions that senior
management makes and the actions it takes in the quest for competitive
advantage in several industries and markets simultaneously; addresses
where to compete
Scope of the Firm Ans✓✓✓The boundaries of the firm along three
dimensions; industry value chain, products and services, and geography
(regional, national, or global markets)
Transaction Cost Economics Ans✓✓✓A theoretical framework in
strategic management to explain and predict the scope of the firm, which
is central to formulating a corporate level strategy that is more likely to
lead to competitive advantage
DETAILED ANSWERS (VERIFIED ANSWERS) ALREADY
GRADED A+
Value Ans✓✓✓The dollar amount (V) a consumer would attach to a
good or service; the consumers maximum willingness to pay; sometimes
also called reservation price
Economic Value Created Ans✓✓✓Difference between value (V) and
Cost (C), or (V-C); sometimes also called economic contribution
Profit (Producers surplus) Ans✓✓✓Difference between price charged
(P) and the cost to produce (C), or (P-C)
Consumer Surplus Ans✓✓✓Difference between the value a consumer
attaches to a good or service (V) and what he or she paid for it (P), or
(V-P)
Opportunity Costs Ans✓✓✓The value of the best forgone alternative
use of the resources employed
Risk Capital Ans✓✓✓Capital provided by shareholders in exchange for
an equity share in a company; it cannot be recovered if the firm goes
bankrupt
, Total Return To Shareholders Ans✓✓✓Return on risk capital that
includes stock price appreciation plus dividends received over a specific
period
Balanced Scorecard Ans✓✓✓Strategy implementation tool that
harnesses multiple internal and external performance metrics in order to
balance financial and strategic goals
Triple Bottom Line Ans✓✓✓Combination of economic, social, and
ecological concerns that can lead to a sustainable strategy
Corporate Level Strategy Ans✓✓✓The decisions that senior
management makes and the actions it takes in the quest for competitive
advantage in several industries and markets simultaneously; addresses
where to compete
Scope of the Firm Ans✓✓✓The boundaries of the firm along three
dimensions; industry value chain, products and services, and geography
(regional, national, or global markets)
Transaction Cost Economics Ans✓✓✓A theoretical framework in
strategic management to explain and predict the scope of the firm, which
is central to formulating a corporate level strategy that is more likely to
lead to competitive advantage
