Why are the current health care systems on the rise being built around the integration of
clinical information technology and disease management systems?
a) They both have high costs
b) They both are new trends in health care
c) They are easy to integrate
d) They do not require a significant investment to integrate
e) They both require asset specificity and coordination
Which of the following structures best describes a small group of people where the
members of the work group are paid based on individual actions?
a) Complex hierarchy
b) Individual
c) Self-managed team
d) Hierarchy of authority
e) Divisional
What concept describes the situation where the owner of an asset grants another party
the right to use that asset, but the owner retains all controlling rights that are not
explicitly stipulated in the contract?
a) Asset specificity
b) Non-contract rights of ownership
c) Control rights agreement
d) Residual rights of control
e) Coordination
In which of the following situations identified by Baron and Besanko will a matrix
never be optimal regardless of any additional circumstances?
a) When spillovers are positively correlated and activities are profit complements
b) When activities are profit complements but spillovers are negatively correlated
c) If activities are profit substitutes and spillovers are positively correlated
d) If spillovers are negatively correlated and activities are profit substitutes
e) None of the above
Which of the following is a source for horizontal differentiation?
a) Price
b) Quality
c) Advertising
d) Location
e) Availability of substitutes
What problem preventing complete contracts refers to a lack of transparency/equal
access to the details surrounding a contract?
a) Agency costs
b) Bounded rationality
c) Performance measurement difficulties
d) Asymmetric information
e) Contract body of law
Which of the following asset specificity forms describes why glass container production
requires molds custom tailored to particular container shapes and glass making
machines?
a) Site specificity
b) Physical asset specificity
c) Dedicated assets
d) Human asset specificity
e) The fundamental transformation
When consumers learn about many products at once, it is known as a :
a) Simultaneous search
b) Parallel search
c) Serial search
d) Sequential search
e) Divided search
What type of firm is one that is already operating in a particular market?
a) Market leader
b) Entrant
c) Incumbent
d) Market follower
e) Monopolist
Which of the following represents producer surplus in the value creation equation,
(B-P) + (P-C)?
a) B
b) P
c) C
d) B-P
e) P-C
Why would a report card that measures inputs possibly lead to multitasking?
a) Sellers would raise the price of goods with low quality inputs
b) Consumers would only know the ‘ingredients’ in a production process
c) The cost of the report card would be passed on in lower product quality
d) Sellers may invest only in reported inputs but scale back on unreported inputs
e) Firms will not disclose poor report card scores
What is the approximate observed median learning curve slope for typical firms?
a) .6
b) .7
c) .8
d) .9
e) 1.0
Which of the following terms best refers to the exercise or use of power in a given
situation by an individual?
a) Control
b) Authority
c) Culture
d) Influence
e) Contracts
What technique did Google use to preserve its “evil-free” culture when going public
with an initial public offering in 2004?
a) Used an IPO underwriter
b) Allow clients to purchase underpriced IPO shares
c) Used a ‘Dutch auction’
d) Committed to sell a certain number of shares at a set price
e) Drastically underpriced its shares (by 200%)