UNC BUSI100 Final, BUSI 100 FINAL EXAM, BUSI 100 Final Exam, BUSI 100 FINAL EXAM

According to Thoreau, which of the following is the choicest of relics?

Books

According to Plato, creativity is the mother of invention, capable of giving rise to a new state.

False

Alexander Hamilton said: "the quick-sighted guidance of private interest, will, if left to itself, infallibly find its own way to the most profitable employment; and it is by such employment that the public prosperity will be most effectually promoted." This statement aligns most closely with the author of course reading?

Adam Smith

Carnegie argues that the law of equity and inclusion is to what we owe our wonderful material development, which brings improved conditions in its train

False

Carnegie describes the historical mode of manufacture as producing:

crude articles at high prices

Which of the following is a phrase from Thoreau?

"The works of the great poets have never been read by mankind for only great poets can read them"

In Smith's Wealth of Nations, he makes the argument that given equal profits between domestic and foreign trade, a merchant is likely to put his greatest support into developing the foreign market.

False

Pacioli would agree that every merchant's main purpose is to arrange all business transactions in such a systematic way that one may understand each one of them at glance

False

In Atlas Shrugged, Ayn Rand writes that money is a living power that dies without its root, and that money will not serve the mind that cannot match it. Which other author of a course reading express similar thoughts?

Andrew Carnegie

Which of the following writers suggested that money is symbolic of society's moral values?

Rand

During class, Professor Hendricks highlighted a distribution from a research study that showed abnormal distribution as it pertains to the reported amount of company profits. What statement best describes the abnormality that was shown in the distribution?

There are too many firms that report profits just above 0

When coaching at Rutgers, 21-year old Jim Valvano told his student-athletes before their first game that they would be successful if they "focus on three things, and three things only." Which of the following is on his list?

Family

During lecture, Professor Hendricks highlighted a recent report from the United Nations that indicated there are fifty million people stuck in modern slavery, a significant increase from the last reported number.

True

Professor Hendricks watches too much sports on TV. What sport was highlighted in the clip that he showed during one lecture?

Tennis

During lecture, Professor Hendricks highlighted his research from a Harvard Business Review article that showed solo founders are able to perform as well as co-founded ventures, even though the solo founder is operating the firm without the help of any other individuals

False

Plato writes, "The natural advantages which one country has over another, in producing particular commodities, are sometimes so great, that it is acknowledged by all the world to be in vain to struggle with them."

False

In The Souls of Black Folk, W.E.B. Du Bois writes, "The keynote of the Black Belt is debt." What does he describe this debt to be?

The continued inability for the population to have their income cover their expenses

Daniel Defoe is believes that there is a connection between the exactness of a tradeperson's bookkeeping and the tradeperson's prosperity.

True

During lecture, we highlighted that an ironic component of Defoe's death was that he:

died while in hiding from his creditors

In 1970, Andrew Carnegie wrote an influential article in the New York Times arguing "there is one and only one social responsibility of business - to increase its profits without deception or fraud."

False

Which of the following would Milton Friedman be most likely to disagree with?

Big corporations are responsible for the large wealth disparity, and managers should thus use the excess profits to mediate disparity

Without ______________, Pacioli indicates that it is impossible for merchants "to conduct their business, for they would have no rest and their minds would always be troubled."

Systematically arranging all transactions

Thoreau notes that most of his townsmen have learned to read, not only to keep accounts and not be cheated in trade, but also as a noble intellectual exercise.

False

Friedman believed that it is appropriate for a publicly held corporation to reduce the wages of its employees in order for it to invest in an activity of general social interest.

False

Under which of the following circumstances would Milton Friedman be most likely to tolerate the manager of a publicly-owned corporation making a charitable contribution using the corporation's money?

The intent of the contribution is to improve the corporation's image so that more people desire to purchase the company's products and services

Which course reading provides the least support to this idea that business exists to facilitate exchanges that are mutually beneficial between two parties?

Milton Friedman

Defoe indicates that if it is too tedious to keep books exactly, partial book-keeping still provides many benefits to the merchant.

False

Du Bois writes that that the Emancipation of the slaves was a factor in helping to resolve the debt problem that plagued the Black Belt throughout the 19th century.

False

Which of the following phrases is from Thoreau?

"The works of the great poets have never yet been read by mankind, for only great poets can read them"

Adam Smith would not likely agree with the idea expressed in this Milton Friedman quote, "The hardest thing in the world to understand is that people operating separately, through their joint relations with one another, through market transactions, can achieve a greater degree of efficiency and of output than can a single central planner."

False

Adam Smith writes that "The general industry of the society can never exceed _______."

what the capital of the society can employ

Pacioli indicates that, "as we know", there are multiple things needed by any one who wishes to carry on business carefully." Which item does he exclude?

A business partner, or co-founder

Which author of one of our course readings is most likely to agree with Benjamin Franklin's quote that "money has never made man happy, nor will it, there is nothing in its nature to produce happiness. The more of it one has, the more one wants."

Ayn Rand

According to Rand, when men live by trade with force as the final judge, the best product/performance will win.

False

In considering the number of individuals to include in each team for this course, Professor Hendricks brought attention to a rule popularized by Amazon that refers to which item of food?

Pizza

During class, we watched some video clips of Martin Shkreli, founder and ex-CEO of Turing Pharmaceuticals. Shkreli's responses about why he raised the price of the antiparasitic drug Daraprim most closely resemble the arguments laid out by which author of one of our course readings?

Milton Friedman

In The Republic, Plato surmises that the number of physicians needed for a society will decrease as it moves from its original state to a more luxurious one.

False

In Plato's The Republic, injustice arises naturally from political disagreement and not from the interpersonal dealings of citizens.

False

Du Bois argued that the keynote of the Black Belt is debt; in the sense that the mass of the population earn incomes that exceed their expenses.

False

During lecture, Professor Hendricks noted that Martin Shkreli, founder and ex-CEO of Turing Pharmaceuticals, was voted the most hated person in America for several years in a row.

True

Which of the following statements is Defoe least likely to agree with?

Financial forecasting acts as a substitute for exact bookkeeping

Which of the following statements is Defoe least likely to agree with?

At the end of each month, a tradesperson should make a record of every transaction that occurred during the month

Milton Friedman is likely to agree with the statement that a virtue of private competitive enterprise is that it forces people to be responsible for their own actions and makes it difficult for them to exploit other people for either selfish or unselfish purposes.

True

Adam Smith believed that the individuals act in their own self-interest because they know that this will lead to the greatest good for society as a whole.

False

Ayn Rand, in Atlas Shrugged, believed that the problem with society is the love of money, not money itself.

False

Plato felt that the fundamental key in the development of an economy was:

More things are produced, and better and more easily, when one man performs one task according to nature, at the right moment, and at leisure from other occupations

What exercise does Thoreau indicate will task the reader more than any other exercise which the customs of the day esteem?

To read true books in true spirit

Andrew Carnegie noted the drawbacks of open competition, but he also noted some of the benefits. Which one of the following was not one of the benefits:

It promotes the concentration of business in the hands of a few

The key argument in Friedman's essay is that the manager is the ___________ of the individuals who own the corporation and her primary responsibility is to them

Agent

Adam Smith argues that the most efficient economies are those where the government intervenes to direct how people employ their capital.

False

Andrew Carnegie believes that the people with extraordinary wealth have a duty to:

Administer his/her wealth while alive "to produce the most beneficial results for the community"

The following quote is attributed to which author of one of our course readings? "Few trends could so thoroughly undermine the very foundations of our free society as the acceptance by corporate officials of a social responsibility other than to make as much money for their stockholders as possible."

Milton Friedman

In Atlas Shrugged, Ayn Rand writes that money is a living power that dies without its root, and that money will not serve the mind that cannot match it. Which other author of a course reading expresses similar thoughts?

Andrew Carnegie

During lecture, we watched a brief interview exchange between David Letterman and former President Barack Obama. In that exchange, former President Obama indicated that the use of Twitter, Facebook, and other social media sites to get news and other information is creating a common information base for society, thus resulting in less polarization of individual beliefs.

False

During lecture, we watched a clip from Shark Tank, a popular TV show where entrepreneurs pitch their business ideas to a panel of potential investors. Which course topic did this clip relate to?

Finance - Capital Structure

During lecture, Professor Hendricks highlighted the passing of Julian Robertson, a Kenan-Flagler alumnus that managed the world's largest hedge fund in the 1990's. Speaking of his experience at UNC, Mr. Robertson indicated that which courses were a particularly important foundation for his future success?

Accounting

Which of the following statements is Plato most likely to indicate is necessary to a well-functioning society?

Tasks are divided and each person focuses on a specific role

Which author of a course reading is most likely to agree with the quote from Robert Kiyosaki, author of Rich Dad Poor Dad, that noted "accounting is possibly the most confusing, boring subject in the world, but if you want to be rich long-term, it could be the most important subject."

Daniel Defoe

Defoe's statement that "Tradesmen often suffer as much by their slothfulness and neglect of book-keeping, as might, especially if their business is considerable, pay for a book-keeper" is best interpreted as:

Accountants likely provide value in excess of their salaries, particularly for large companies

The key point in the Friedman doctrine is that in her capacity as a corporate executive, the manager is the agent of the individuals who own the corporation, and her primary responsibility is to conduct the business in accordance with their desires

True

Who would agree with this Bill Gates quote, "I believe that with great wealth comes great responsibility, a responsibility to give back to society and a responsibility to see that resources are put to work in the best possible way to help the most in need"

Andrew Carnegie

Without ___________, Luca Pacioli indicates that it is impossible for merchants "to conduct their business, for they would have no rest and their minds would always be troubled."

Systematically arranging all transactions

One plausible explanation for Du Bois' observation that the value of farms in Dougherty County, GA decreasing from $3 million in 1860 to $2 million in 1870 is that Emancipation of the slaves led to present value of cash flows for those farms to:

Decrease because the cost of labor increased

Ayn Rand, in Atlas Shrugged, believed that the problem with society is the love of money, not money itself

False

During lecture, Professor Hendricks highlighted a recent report from the United Nations that indicated there are fifty million people stuck in modern day slavery, a significant increase from the last reported number

True

Which of the following metrics was not a key performance indicator for any round of the Market games simulation?

Net income

Jimmy V week began on November 29 this year. Jimmy V noted we should do several things every day, even including this advice on his headstone. Which of the following things was not on his list?

Exercise

Correct list: laugh, cry, think

Porter's five forces determine the competitive structure of an industry, and its profitability. Which of the following was not one of the five forces highlighted by Michael Porter?

Access to capital

What are the five forces highlighted by Michael Porter?

1. buyers

2. suppliers

3. new entrants

4. substitutes

5. rivalry

Jack Welch, former CEO of General Electric indicates that "an organization's ability to learn and translate that learning into action rapidly, is the ultimate competitive advantage." Which passage from "The Art of War" most directly relates to this idea?

Don't repeat the tactics which have gained you over one victory, but let your methods be regulated by the infinite variety of circumstances

Thomas Aquinas warns against hiring "experts," noting that no one ever considers themselves expert if they really know their job. Rather, a worker who knows their job sees so much more to be done than they have done, that they are always pressing forward"

False

Karl Marx noted that "work, at its best, is what makes us human. It fulfills our species essence." Considering this, Karl Marx would likely argue against Frederick Taylor's Principles of Scientific Management

True

Regarding chassis assembly, Henry Ford noted to have "adopted the policy of a 'man-high' work: we had one line twenty-six and three quarter inches and another twenty-four and one half inches from the floor." Which principle of Scientific Management is this?

The scientific selection of the worker (once we know what the task is, we can identify the best person for the job)

The 4 P's of Marketing is often described as consisting of the key considerations to successfully market a product or service. During our discussion of the 4 P's in class, we highlighted a marketing campaign for Squatty Potty that featured which animal?

Unicorn

Cicero writes of a debate between Antipater and Diogenes about whether it is immoral for sellers to conceal facts from buyers. At the end of this debate, Antipater and Diogenes agree that concealing such information is immoral.

False

The 4 P's of Marketing, also known as the "marketing mix," is often described as consisting of the key considerations to successfully market a product or service. Which of the following is not one of the 4 P's?

people

In discussing the Industrial Problem, Rockefeller includes all of the following statements about a potential solution EXCEPT which of the following?:

There is no technical solution. (i.e., one that requires a change only in the techniques of the natural sciences, demanding little or nothing in the way of change in human values or ideas of morality)

DuPont, the firm showcased in Dark Waters, is a good example of a firm operating under the principles of stakeholder capitalism.

False

Stakeholder capitalism

cares about others

Shareholder capitalism

cares about oneself

What is the name of Google's motto that "we believe strongly in the long term, we will be better served—as shareholders and in all other ways—by a company that does good things for the world even if we forego some short term gains"

Don't be evil

Garrett Hardin indicates that solutions do exist to problems like the Tragedy of the Commons, but that these solutions require extensions in morality rather than changes in the techniques of the natural sciences

True

During lecture, Professor Hendrucks highlighted an article from the Journal of Finance that indicated none of the highest rated funds in terms of ESG delivered better financial returns or ESG performance relative to the lowest rated ESG funds.

True

The triple bottom line is an accounting framework that incorporates which of the following three dimensions of performance?

Environmental, Financial, Social (also known as the 3 P's: planets, profits, people)

Gandhi is likely to agree with the only quote in out syllabus, by Ralph Waldo Emerson, noting that "The subject of economy mixes itself with morals"

True

Operating Activities

provision of goods or services and other normal business activities (i.e. rent, wages, customers)

Investing Activities

acquisition or disposal of long-lived productive assets (i.e. truck, equipment)

Financing Activities

related to owners or creditors (i.e. stock, debt)

Revenues

increases in "owners equity" from providing goods and services

Expenses

decreases in "owner's equity" incurred in the process of generating revenues

Net income

revenues - expenses

Porter: Buyers

buyer power is high when buyers are large in size, industry products are undifferentiated, and switching costs are low

Porter: Suppliers

supplier power is high when few suppliers exist or switching costs are high

Porter: New Entrants

threat is lower when barriers to entry are high (e.g: government restrictions)

Porter: Substitutes

threat is high if substitute offers an attractive price-performance trade-off relative to the industry's product or if switching costs are low

Porter: Rivalry

high when competitors are numerous, are roughly equal in size, or industry growth is slow

The 4 P's of Marketing

product, place, price, promotion

Product

designing a product to meet consumer needs (features, quality, branding, packaging, guarantees)

Place

getting the product to the right place (sales channels, locations, inventory, transport)

Price

setting an appropriate price (price strategy, pricing, allowances, payment terms)