Originally published in Carroll Capital, the print publication of the Carroll School of Management at Boston College. .听
If you're graduating from the Carroll School of Management, or graduated some time ago, what do you want to remember from your coursework? What should you remember?听
Six years ago, Carroll School faculty and deans began tackling these questions and crafted answers鈥攊n the form of a rigorous assessment given to seniors in their final semester. The test, administered once every three years, consists of 100 questions derived from the management core curriculum
鈥淲e don鈥檛 want our courses to be a checklist for students鈥斺�榃e took the class, we鈥檙e done, and we don鈥檛 have to think about it anymore,鈥欌�� says Ethan Sullivan, senior associate dean for the undergraduate program. 鈥淪o we came up with the senior assessment, which is basically the things we want all of our students to know when they graduate.鈥�
The (ungraded) exam reflects the school鈥檚 chief learning goals. Those are to make sure that students, upon graduation, are ethical reasoners, team players, and critical thinkers, as well as adept in quantitative analysis and knowledgeable about both general business concepts and specific disciplines.听
What follows is a 12-question version of the assessment.听
1. "Creative destruction" refers to:听
听听听听A. The elimination of entire industries because of new ones created by technology
听听听听叠. The destruction of jobs due to the creation of new industires听
听听听听C. Value creation of better quality and lower prices due to innovation听
听听听听D. All of these answers听听听听听听 听听
2. Which case could qualify as a disruptive innovation?听
听听听听A. Laptops vs. desktops听
听听听听叠. Streaming vs. DVDs听
听听听听C. Trains vs. trucks for cargo听
听听听听D. Uber vs. traditional taxis
3.听Jessica Springer, a Pascal鈥檚 Bank sales executive, is upset at the way her manager, Ella Womack, always calls her in for one-on-one meetings to discuss Springer鈥檚 underperformance. Though Springer makes a higher number of sales calls and works longer hours than last year, her sales figures are still low. Springer knows that the main reason behind her underperformance is the country鈥檚 economic downturn. However, her manager, Womack, believes that Springer鈥檚 underperformance is the result of her laid-back attitude, not the economy. Womack鈥檚 beliefs are BEST characterized by ______.听
听听听听A. Escalation of commitment听
听听听听叠. Availabilty bias听
听听听听C. Fundamental attribution error听
听听听听D. Contrast effect听
4. Why do online grocers have a competetive advantage over traditional grocery stores?听
听听听听A. Online grocers offer more products than traditional grocery stores听
听听听听叠. Online grocers are more efficient at grocery delivery听
听听听听C. Online grocers prioritize the needs of customers more than traditional grocers听
听听听听D. Online grocers collect data to customize the shopping experience听
5. Dani's just paid an annual dividend of $6 per share. What is the dividend expected to be in five years if the growth rate is 4.2%?听
听听听听A. $7.37
听听听听叠. $7.14听
听听听听C. $7.07
听听听听D. $7.44
6. What is the effect on the financial statements when a company fails to adjust the prepaid insurance expense account at year end for insurance coverage that has been used?听
听听听听A. Expenses are understated and net income is understated.
听听听听叠. Net income is overstated and assets are overstated.
听听听听C. Net income is overstated and stockholders' equity is understated.
听听听听D. None of these answers.听
7.听Imagine you are conducting an analysis of beverage products. You know from visiting a Walmart store that Coca-Cola is priced at $0.45 per can, while a competing product labeled simply 鈥淐ola鈥� is priced at $0.20 per can. Taste tests have shown that American consumers cannot tell the difference between Coca-Cola and the generic cola. A beverage industry database indicates that 100 million cans of Coca-Cola are sold every year. What is the brand equity of Coca-Cola based on one year of sales?
A. $20 million
B. $65 million听
C. $45 million听
D. $25 million听
8.听During the current year, Rock Company鈥檚 cash balance increased from $79,000 to $91,300. Rock鈥檚 net cash inflow from operating activities was $37,300, and its net cash inflow from financing activities was $11,100. How much was Rock鈥檚 net cash flow from investing activities?
A. A net cash outflow of $60,700
B. A net cash outflow of $42,900听
C. A net cash outflow of $36,100
D. A net cash inflow of $60,700
9.听Herm猫s is a well-known luxury brand that specializes in selling beautiful silk scarves. Their boxes are always a particular color of orange that is trademarked by the company. Carla鈥檚, also a store that sells women鈥檚 fashion accessories, decides to package their products in bright orange bags. Herm猫s sues for a violation of its trademark. What is the result?
听听听听A. Herm猫s will lose because orange is not novel.听
听听听听叠. Herm猫s will win only if it can prove it is losing customers to Carla's.听
听听听听C. Herm猫s will lose because orange is not distinctive.听
听听听听D. Herm猫s will win if it can prove that a customer is likely to be decieved by the orange bags.听
10.听Which of the following are costs associated with holding inventory?
听I. Opportunity cost of capital
听II. Insurance (for theft, damage, devaluation,obsolescence, etc.)
听III. Warehousing
听听听听A.听II only听听听听
听听听听叠.听III only听听听听听
听听听听C.听I,听II, and听III听听听听
听听听听D. II and听III
11. In business, it is common for management to make decisions that aim to produce the greatest happiness, or least pain, for the greatest number of people. If they do, they would be:听
听听听听A. Following deontology听
听听听听叠. Practicing conscious capatalism听
听听听听C. Applying utilitarian phlilosophy听
听听听听D. Using virtue ethics
12. Which of these changes indicates an improvement in a firm's asset management efficiency?听
听听听听A. An increase in the amount of assets per dollar of sales听
听听听听叠. An increase in the inventory turnover rate听
听听听听C. An increase in the average days in inventory听
听听听听D. A decrease in the receivables turnover rate
Answer Key
1.听顿听听听听听2.听叠 听听听听3.听C 听听听听4.听D 听听听听5.听础听 听 听6.听叠听听
7.听顿听听听听听8.听C听 听 听9.听顿听听听听听10.听C听 听11.听颁听听听听12.听叠
