Multiple Choice True False Roughly 35 40 questions 1 What are the 7 Randian virtues RIPJIPH rationality productiveness pride independence integrity honesty and justice 2 What are the 11 Aristotelian moral virtues courage self control justice generosity magnificence material high mindedness ambition nameless honor gentleness anger truthfulness friendliness wittiness social relations Deficit Mean Excess Wasteful Generosity Stinginess Lack Ambition Ambition Overly Ambitious Apathetic Gentleness Short tempered Self depricator Truthfulness Boastful Grouchiness Friendliness Flatterer Overly Serious Wittiness Bafoon 3 What are the 7 measurements of utility DICEPFP intensity of pleasure and pain duration how long it will last certainty uncertainty how certain you are that it will happen propinquity remoteness how near it is fecundity likelihood pleasure will bring more pleasure pain pain purity likelihood pleasure will bring pain vice versa extent number of people impacted 4 From the material prior to the midterm review the Michael Porter Milton Friedman John Mackey and Marjorie Kelly pieces PORTER 12 According to Michael Porter why does the threat of new entrants put a cap on the profit potential of an industry When the threat of entry is high incumbents must hold down their prices or boost investment to hinder new competitors Do stockholder fund major public corporations False 8 Describe 2 conditions where customer power is high in an industry Use an example of an industry to illustrate your argument Customer Power is high few buyers large volume buyers products are undifferentiated few switching costs for buyers Ex 1 telecommunications equipment offshore drilling and bulk chemicals have large volume buyers and high fixed costs therefore they are powerful 9 Describe 2 conditions where the threat of substitute products is high in an industry Use an example of an industry to illustrate your argument Substitute threat is high lower prices for same performance cost of switching is low Ex 1 Long distance phone calls vs Vonage Skype 2 Video rentals vs Netflix and other streaming 10 Describe 2 conditions where supplier power is high in an industry Use an example of an industry to illustrate your argument Supplier power is high when more concentrated than the industry it sells to suppliers don t depend on industry for offer differentiated products Switching costs in switching suppliers no substitute suppliers might enter market Ex 1 Pharmaceutical companies with different PATENTED drugs 2 airplanes need pilots no substitute for a good pilot 11 Describe 2 conditions where a rivalry among existing competitors is intense Use an example of an industry to illustrate your argument Rivalry is high when there are many competitiors industry growth is slow exit barriers are high Milton Friedman John Mackey Majorie Kelly increase profits w o fraud Whole foods against stockholder CLOAK looks like your helping others helping yourself put customers first do NOT fund major corps Corporations don t have responsibility people do Investors don t have right to define purpose of the company Equity investments only reach public when new common stock is sold CEO s aren t experts in philanthropy entreprenurs set company strategy negotiate trade stock holders own corp take a lot give a little WF hired 1st investors employees not a part WF gives money to a cause rather than good return to small investors taxation without representation violation of truth with shareholders Give to community bc they care want it to flourish stockholders get what employees earn corp design flawed ppl have no place in free market