BUSI 100

Sun Tsu said "the clever combatant looks to the effect of combined energy, and does not require too much from individuals." Which working arrangement is most contrary to this idea? A. Tradition schedule. 8 hours a day, 5 days a week. B. Nurses schedule. 12 hour days, 3 days a week. C. '996' schedule. 9 am to 9 pm, six days a week. D. Flexible schedule. Employees and employers work together to determine the number of hours and days that the employee will work.

'996' schedule. 9 am to 9 pm, six days a week.

Which of the following ideas did Defoe believe useful to consider when conducting business: A. Everything done in the conduct of the business should be set down in a book B. Every transaction should be recorded in the books at the very time it occurs C. A tradesperson should be satisfied to see that there is more cash in their account than their books indicated

A and B

Defoe tells a story about a tradesman who could neither read nor write. What lesson does he intend to teach by telling this story?

A person need be diligent and exact in keeping their books

Companies often require workers to sign non-disclosure agreements. These agreements are legal contracts that create a confidential relationship between the parties, typically to protect any type of confidential and proprietary information or trade secrets from being revealed to other parties. Which passage from Sun Tzu's "The Art of War" most directly suggests the use of such agreements when operating in a competitive industry? A. All warfare is based on deception B. Now in order to kill the enemy, our men must be roused to anger; that there may be advantage from defeating the enemy, they must have their rewards. C. The clever combatant looks to the effect of combined energy, and does not require too much from individuals. D. To secure ourselves against defeat lies in our own hands, but the opportunity of defeating the enemy is provided by the enemy himself.

A. All warfare is based on deception

How does Rand view the American idea of "making money"? A. Positively, since this removes the static idea of wealth and allows financial mobility B. Negatively, since an obsession over money directly causes most evil in society C. Neutrally, since Rand views this as a natural by-product of any currency-based system D. Negatively, since this distracts from the value of material raw wealth such as gold E. Positively, since this meant they didn't let moral issues hamper the country's growth

A. Positively, since this removes the static idea of wealth and allows financial mobility

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

Which author of one of our course readings is most likely to agree with the following quote from Winston Churchill: "the main vice of capitalism is the uneven distribution of prosperity. The main vice of socialism is the even distribution of misery."

Andrew Carnegie

Which of the following statements is Defoe LEAST likely to agree with? A. Exact keeping of their books is one essential part of a tradeperson's prosperity B. Financial forecasting acts as a substitute for exact bookkeeping C. Bookkeeping serves as an indicator of the state of the business D. A tradeperson may qualify themself for employment with someone to whom they owe money if the tradesperson is able to show that their books have been kept exactly E. Even if the outlook of the business is unfavorable, it is important to maintain accurate books.

B. Financial forecasting acts as a substitute for exact bookkeeping

A common business practice is to base employee pay on individual performance, rather than on the number of hours worked. Which passage from Sun Tzu's "The Art of War" most directly encourages the use of performance-based pay? A. To secure ourselves against defeat lies in our own hands, but the opportunity of defeating the B. Now in order to kill the enemy, our men must be roused to anger; that there may be advantage from defeating the enemy, they must have their rewards. C. Do not repeat tactics which have gained you one victory, but let your methods be regulated by the infinite variety of circumstances. D. The clever combatant looks to the effect of combined energy, and does not require too much from individuals. E. All warfare is based on deception.

B. Now in order to kill the enemy, our men must be roused to anger; that there may be advantage from defeating the enemy, they must have their rewards.

Sun Tzu's Art of War, provides a number of marketing lessons. What does the following lesson mean in a modern marketing application: "Water shapes its course according to the nature of the ground over which it flows; the soldier works out his victory in relation to the foe whom he is facing." A. One should not bluff when presenting a product B. One should be flexible and adaptive when marketing a product or service C. One should account for the sale of water without applying the stringent accounting rules required by regulators. D. One should price water in proportion to the ground it covers E. One should be faithful to one's original marketing plan at all time

B. One should be flexible and adaptive when marketing a product or service

Andrew Carnegie argues that the law of competition has resulted in several outcomes. Which of the following outcomes does he NOT include? A. The laborer has now more comforts than the landlord had a few generations ago. B. The living conditions of the apprentice and the master are made more equal C. The landlord now has books and pictures rarer than a King could previously obtain D. The poor now enjoy what the rich could not before afford

B. The living conditions of the apprentice and the master are made more equal

During lecture, we discussed Michael Porter's Five Forces that provides a framework to assess a firm's competitive environment. During our discussion, we highlighted how Clayton Christensen's Disruptive Innovation theory connected most closely to one of the five forces. Which force was this? A. Bargaining Power of Buyers B. Threat of New Entrants C. Bargaining Power of Suppliers D. Threat of Substitutes E. Intensity of Rivalry

B. Threat of New Entrants

Pacioli indicates that "as we know", there are 3 things needed by any one who wishes to carry on business carefully. Which item is NOT included? A. Arrange all transactions in a systematic way B. Cash C. A co-founder, or reliable business partner. D. Be a good bookkeeper and ready mathematician

C. A co-founder, or reliable business partner

In a free society, which of the following statements is Ayn Rand most likely to agree with? A. Money is solely a tool of exchange, which permits men to trade with one another B. Money is the root of all evil C. Ayn Rand is unlikely to agree with any of the listed choices D. Money is a corrupting power that alters a man's code of values E. Money is made by the strong at the expense of the weak

C. Ayn Rand is unlikely to agree with any of the listed choices

According to a Duke University study, which of the following was NOT identified by company managers as one of the three most important financial metrics? A. Earnings B. Cash flow from operations C. Free cash flow D. Revenues

C. Free cash flow

Pacioli described the process of making an inventory, which includes "whatever one has in this world". In which part of a firm's financial statements is such an inventory most likely to appear? A. The income statement B. The liabilities section of a balance sheet C. The assets section of a balance sheet D. The cash flow statement

C. The assets section of a balance sheet

Words to describe Martin Shkreli (Founder and CEO of Turing Pharmaceuticals)

Capitalist, greed, profit, logical, driven

What does Pacioli indicate as being the most important factor in carrying on business?

Cash

In class, we watched a video of Bill Belichick, football coach of the New England Patriots, answering a question about his process of preparing the team's strategy each week. Responding to that question, he noted that "find a way to use your strengths without them really knowing exactly what you're doing or you have a little bit of disguise or distraction...that's really what you try to do to be sound" Which of the following paragraph references to Sun Tzu's "The Art of War" most directly supports this statement.

Chapter 1, Paragraph 18

Which reading featured the line "It is one thing to conceal, not to reveal is quite a different thing."

Cicero

Which author is most likely to agree with the following quote from Bill Gates: "I believe that with great wealth comes great responsibility, a responsibility to give back to society and a responsibility to see that those resources are put to work in the best possible way to help those most in need." A. W.E.B. Du Bois B. Adam Smith C. Ayn Rand D. Andrew Carnegie E. Milton Friedman

D. Andrew Carnegie

If Milton Friedman were sailing the ship described in the Famine at Rhodes story, do you believe he is most likely to operate in accordance with the strategy given by Antipater or Diogenes?

Diogenes

Porter's Five Forces is a framework used to assess an industry's level of competition (and thius, its profitability). Which of the following did Michael Porter NOT include as one of his five forces? A. Bargaining power of suppliers B. Threat of new entrants C. Bargaining power of buyers D. Disruptive innovation E. Threats of substitutes

Disruptive innovation

Jack Welch, former CEO of General Electric, is one of the most frequently referenced businesspeople in the past several decades. One of his many famous quotes is that "an organization's ability to learn, and translate that learning into action rapidly, is the ultimate competitive advantage." Which passage from Sun Tzu's "The Art of War" most directly relates to this idea being expressed by Jack Welch?

Do not repeat tactics which have gained you one victory, but let your methods be regulated by the infinite variety of circumstances.

In Plato's The Republic, individuals exchange with one another, and one gives, and another receives, with the intention that the exchange will... A. benefit the State B. be nullified C. enrich one, but not the other D. be a "zero-sum" transaction E. none of the above

E. none of the above

A start-up firm is looking to raise financing from an investor that will help guide the company's founders, neither of whom have experience growing a business or substantive industry connections. What type of financing is the firm most likely to prefer? Debt or equity

Equity

A start-up firm is seeking to raise financing, but does not yet have a product to sell. Which type of financing is the firm most likely to attract? Debt or equity

Equity

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

False

An example of Adam Smith's "invisible hand" is a statesman, council, or senate who directs private people in what manner they ought to employ their capitol. True or false

False

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

False

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

False

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

False

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

False

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. True or false

False

In a reference to Charles Darwin's Survival of the fittest, Carnegie argues that while the law of competition may be sometimes hard for the race, it is best for each individual. True or false

False

In his book Walden, Thoreau argues that the eloquence of the orator's spoken language is the most powerful form of communication. True or false

False

In the excerpt that we read from The Complete English Tradesman, Daniel Defoe provides a detailed record of all the rules necessary for effective bookkeeping in the 18th century. True or false

False

The story of Gyges, as written by Plato, is given as a proof that individuals believe justice to be more profitable than injustice. True or false

False

Thomas Aquinas believed that it is never lawful to sell a thing at a higher price than what was paid for it. True or false

False

While Plato's society was able to find work suited to individuals that were "the weakest in bodily strength", Ford's principles of assembly identify such individuals as being unfit for labor. True or false

False

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." True or false

False (Friedman said that)

When coaching at Rutgers, 21-years old Jim Valvano told his students-athletes before their first game that they would be successful if they "focus on three things, and three things only." What is on his list?

Family

Who said that continual reading of novels leads to "dulness of sight, a stagnation of the vital circulations, and a general deliquium and sloughing off of all the intellectual faculties."

Henry David Thoreau

During lecture, we discussed Michael Porter's Five Forces that provides a framework to assess a firm's competitive environment. Based on that discussion, fill in the missing word: "Bargaining power of buyers is _______________ when buyers are large in size, industry products are undifferentiated, and switching costs are low." High, medium, or low

High

During lecture, we discussed Michael Porter's Five Forces that provides a framework to assess a firm's competitive environment. Based on that discussion, fill in the missing word: "Bargaining power of suppliers is _______________ when few suppliers exist or switching costs are high." High, medium, or low

High

Pacioli indicates that the purpose of every merchant is to...

Make a profit

In Plato's The Republic, who or what is the "true creator" of a State?

Necessity

Who said, "By directing that industry in such a manner as its produce may be of the greatest value, he intends only his own gain, and he is in this led by an invisible hand to promote an end which was no part of his intention."

Not Plato, Bacon, Mill, or Thoreau

John Stuart Mill highlights that the gross profits from capital (i.e., the gains returned to those who supply the funds for production) must suffice for three purposes. Which of the following purposes does he exclude? A. A sufficient equivalent for abstinence B. Imdemnity for risk C. Provision for the necessaries D. Remuneration for the labour and skill required for superintendence

Provision for the nesessaries

What activity is Thoreau discussing when noting that we should do it by standing on tiptoe and devoting our most alert and wakeful hours to it?

Reading

Because acceptance of "the doctrine of social responsibility" permits political mechanisms, not market mechanisms, to determine the allocation of scarce resources, Friedman argues that acceptance of this doctrine necessarily involves acceptance of ______________.

Socialism

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

Francis Bacon presented the pros (commodities) and cons (discommodities) of usury. Among the pro's, he mentioned...

That it facilitates debt capital because it would be vanity to think of borrowing without making a profit

Francis Bacon presented the pros (commodities) and cons (discommodities) of usury. Among the pro's, he mentioned: A. That it facilitates debt capital because it would be vanity to think of borrowing without making a profit B. That the treasury of the state will be brought into a few hands C. That usury causes the price of land to decrease D. That it makes poor merchants

That it facilitates debt capital because it would be vanity to think of borrowing without making a profit

During lecture, we discussed Michael Porter's Five Forces that provides a framework to assess a firm's competitive environment. During our discussion, we highlighted how Zoom and other virtual meeting platforms are increasingly being referenced as increasing the competitive environment of firms operating in the airline industry. Which of the five forces is this discussion most directly relate to?

Threat of substitutes

Henry Ford is likely to agree with the statement from Plato that the division of labor results in all things being produced more plentifully and easily and of a better quality. True or false

True

Combining the readings of Pacioli, Defoe, and Ford, successful businesses should perform detailed record keeping for which items? A. experiments and financial transactions B. experiments, but not financial transactions C. financial transactions, but not experiments D. neither experiments nor financial transactions

financial transactions, but not experiments

Which of the following statements is Plato most likely to indicate is necessary to a well-functioning society? A. tasks are divided and each person focuses on a specific role B. people are self-sufficient and occupy multiple roles C. it is made up of like-minded people that have similar skillsets D. people are self-sufficient, but communicate with others to learn best practices

tasks are divided and each person focuses on a specific role