HFT 4224 Exam 1 UPDATED Exam
Questions and CORRECT Answers
What is the greatest wealth creator the world has ever known? - CORRECT ANSWER -
Capitalism
Mackey vs. Friedman - CORRECT ANSWER - F: Social responsibility of every business
is to increase profits for shareholders
M: Just as people need to eat to live businesses need profit to survive but, we don't live to eat and
neither should businesses
Bill George - CORRECT ANSWER - Professor of management at Harvard
Worked at Honeywell, Litton, Department of Defense, and Medtronic
Robert Kaplan - CORRECT ANSWER - Created more resilient and nuanced way to
measure long-term company performance with balance scorecard
Inauthentic version of capitalism - CORRECT ANSWER - Crony capitalism
What caused destruction of GM, Enron, Sears, and Kmart? - CORRECT ANSWER -
Drive for short-term gains
Merits of capitalism - CORRECT ANSWER - 1.Increase world's standard of living
2.Free markets lead to free people
3.Innovative encouragement
4.Generates wealth
5.Way to bring back heroic spirit (conscious)
1st Awakening - CORRECT ANSWER - Business is based on voluntary exchange and
cooperation (not exploitation and coercion)
, What has led to unprecedented prosperity for humanity? - CORRECT ANSWER -
Voluntary exchange for mutual benefit
2nd Awakening - CORRECT ANSWER - Whole Foods flooded under 8 feet of water after
8 months of opening
Importance of stakeholders (customers, employees, suppliers, shareholders)
Primary purpose of writing this book - CORRECT ANSWER - Inspire creation of more
conscious busnisses
Marx's issues with capitalism - CORRECT ANSWER - 1. Modern work is alienating
2. Modern work is insecure
3. Workers get paid little while capitalists get richer
4. Capitalism is very unstable
5. Capitalism is bad for capitalists (economic interests become first in their hearts)
How to fix capitalism (according to video) - CORRECT ANSWER - 1. Don't replace it-
adjust it
2. Grows best when properly taxed and regulated
3. Inequality can be reduced
4. Financial industry should (and can) be controlled
No human creation has had a greater positive impact on more people more rapidly than this -
CORRECT ANSWER - capitalism
Most successful economies in the world - CORRECT ANSWER - US and North Korea;
both have very different systems of capitalism
Questions and CORRECT Answers
What is the greatest wealth creator the world has ever known? - CORRECT ANSWER -
Capitalism
Mackey vs. Friedman - CORRECT ANSWER - F: Social responsibility of every business
is to increase profits for shareholders
M: Just as people need to eat to live businesses need profit to survive but, we don't live to eat and
neither should businesses
Bill George - CORRECT ANSWER - Professor of management at Harvard
Worked at Honeywell, Litton, Department of Defense, and Medtronic
Robert Kaplan - CORRECT ANSWER - Created more resilient and nuanced way to
measure long-term company performance with balance scorecard
Inauthentic version of capitalism - CORRECT ANSWER - Crony capitalism
What caused destruction of GM, Enron, Sears, and Kmart? - CORRECT ANSWER -
Drive for short-term gains
Merits of capitalism - CORRECT ANSWER - 1.Increase world's standard of living
2.Free markets lead to free people
3.Innovative encouragement
4.Generates wealth
5.Way to bring back heroic spirit (conscious)
1st Awakening - CORRECT ANSWER - Business is based on voluntary exchange and
cooperation (not exploitation and coercion)
, What has led to unprecedented prosperity for humanity? - CORRECT ANSWER -
Voluntary exchange for mutual benefit
2nd Awakening - CORRECT ANSWER - Whole Foods flooded under 8 feet of water after
8 months of opening
Importance of stakeholders (customers, employees, suppliers, shareholders)
Primary purpose of writing this book - CORRECT ANSWER - Inspire creation of more
conscious busnisses
Marx's issues with capitalism - CORRECT ANSWER - 1. Modern work is alienating
2. Modern work is insecure
3. Workers get paid little while capitalists get richer
4. Capitalism is very unstable
5. Capitalism is bad for capitalists (economic interests become first in their hearts)
How to fix capitalism (according to video) - CORRECT ANSWER - 1. Don't replace it-
adjust it
2. Grows best when properly taxed and regulated
3. Inequality can be reduced
4. Financial industry should (and can) be controlled
No human creation has had a greater positive impact on more people more rapidly than this -
CORRECT ANSWER - capitalism
Most successful economies in the world - CORRECT ANSWER - US and North Korea;
both have very different systems of capitalism
