MBA MFT STUDY CARDS EXAM (ACTUAL 2025)
QUESTIONS AND VERIFIED ANSWERS
DiSC - <<<Answers>>>Identifies behavioral patters in terms
of dominance influence steadiness and conscientiousness
assessment centers - <<<Answers>>>multiple raters evaluate
employees performance on a number of exercises at an off site
location as they work in a group
The Big Five - <<<Answers>>>-Extroversion
-Agreeableness
-Conscientiousness
-Emotional Stability
-Openness to Experience
locus of control - <<<Answers>>>The degree to which
people believe they are masters of their own fate.
Internals believe that they control what happens to them.
Externals believe that what happens to them is controlled by
outside forces.
,high power vs. low power distance - <<<Answers>>>High
Power Distance means that large inequalities of power and
wealth exist and are tolerated in a culture.
A low power distance indicates the culture discourages
differences between power and wealth.
individualism vs. collectism - <<<Answers>>>Individualism
is the degree to which people prefer to act as individuals
rather than as members of a group.
Collectivism emphasizes a tight social framework in which
people expect others in groups of which they are a part of to
look after them and protect them.
masculinity vs. femininity - <<<Answers>>>A high
masculinity rating indicates the culture has separate roles for
men and women, with men dominating the society.
A high femininity rating means that the culture has little
differentiation between male and female roles. High
femininity does not mean that the culture emphasizes
feminine roles, but rather equality between men & women.
uncertainty avoidance - <<<Answers>>>The degree to which
people in a country prefer structured over unstructured
situations.
,long-term orientation vs. short-term orientation -
<<<Answers>>>This focuses on the degree of a society's
long-term devotion to traditional values.
overconfidence bias - <<<Answers>>>When we're given
factual questions and asked to judge the probability that our
answers are correct, we tend to be far too optimistic.
anchoring bias - <<<Answers>>>A tendency to fixate on
initial information, from which we then fail to adequately
adjust for subsequent information.
confirmation bias - <<<Answers>>>The tendency to seek out
information that reaffirms past choices and to discount
information that contradicts past judgments.
net present value (NPV) - <<<Answers>>>NPV calculates the
difference between the sum of the values of a projects future
cash flows and the cost of the project. If NPV > zero the
project should be accepted
what 3 decision criteria does NPV meet? - <<<Answers>>>1.
It adjusts for the time-value of money
2. It adjusts for risk
, 3. It provides information on whether a project will deliver
value for a firm
internal rate of return (IRR) - <<<Answers>>>IRR shows the
"break-even" interest rate - is the project a better proposition
than the outside opportunity cost? If IRR is greater than the
required return, accept the project.
IRR can be unreliable with... - <<<Answers>>>1. Non-
conventional cash flows (can generate two IRR's)
2. Mutually exclusive projects
agency problem - <<<Answers>>>- Where the principal
(Shareholders) hire agents (Managers) to represent their
interests
- Potential conflict between the principal and the agent is
known as the "Agency Problem"
the role of the firm - <<<Answers>>>Historically the firm has
been designed to maximize shareholder wealth however this is
changing. With growing importance of corporate social
responsibility and activist investors (e.g. PETA) the purpose
of many organizations is changing
CALCULATING CASH FLOW - <<<Answers>>>EBIT +
DEPRECIATION - TAXES
QUESTIONS AND VERIFIED ANSWERS
DiSC - <<<Answers>>>Identifies behavioral patters in terms
of dominance influence steadiness and conscientiousness
assessment centers - <<<Answers>>>multiple raters evaluate
employees performance on a number of exercises at an off site
location as they work in a group
The Big Five - <<<Answers>>>-Extroversion
-Agreeableness
-Conscientiousness
-Emotional Stability
-Openness to Experience
locus of control - <<<Answers>>>The degree to which
people believe they are masters of their own fate.
Internals believe that they control what happens to them.
Externals believe that what happens to them is controlled by
outside forces.
,high power vs. low power distance - <<<Answers>>>High
Power Distance means that large inequalities of power and
wealth exist and are tolerated in a culture.
A low power distance indicates the culture discourages
differences between power and wealth.
individualism vs. collectism - <<<Answers>>>Individualism
is the degree to which people prefer to act as individuals
rather than as members of a group.
Collectivism emphasizes a tight social framework in which
people expect others in groups of which they are a part of to
look after them and protect them.
masculinity vs. femininity - <<<Answers>>>A high
masculinity rating indicates the culture has separate roles for
men and women, with men dominating the society.
A high femininity rating means that the culture has little
differentiation between male and female roles. High
femininity does not mean that the culture emphasizes
feminine roles, but rather equality between men & women.
uncertainty avoidance - <<<Answers>>>The degree to which
people in a country prefer structured over unstructured
situations.
,long-term orientation vs. short-term orientation -
<<<Answers>>>This focuses on the degree of a society's
long-term devotion to traditional values.
overconfidence bias - <<<Answers>>>When we're given
factual questions and asked to judge the probability that our
answers are correct, we tend to be far too optimistic.
anchoring bias - <<<Answers>>>A tendency to fixate on
initial information, from which we then fail to adequately
adjust for subsequent information.
confirmation bias - <<<Answers>>>The tendency to seek out
information that reaffirms past choices and to discount
information that contradicts past judgments.
net present value (NPV) - <<<Answers>>>NPV calculates the
difference between the sum of the values of a projects future
cash flows and the cost of the project. If NPV > zero the
project should be accepted
what 3 decision criteria does NPV meet? - <<<Answers>>>1.
It adjusts for the time-value of money
2. It adjusts for risk
, 3. It provides information on whether a project will deliver
value for a firm
internal rate of return (IRR) - <<<Answers>>>IRR shows the
"break-even" interest rate - is the project a better proposition
than the outside opportunity cost? If IRR is greater than the
required return, accept the project.
IRR can be unreliable with... - <<<Answers>>>1. Non-
conventional cash flows (can generate two IRR's)
2. Mutually exclusive projects
agency problem - <<<Answers>>>- Where the principal
(Shareholders) hire agents (Managers) to represent their
interests
- Potential conflict between the principal and the agent is
known as the "Agency Problem"
the role of the firm - <<<Answers>>>Historically the firm has
been designed to maximize shareholder wealth however this is
changing. With growing importance of corporate social
responsibility and activist investors (e.g. PETA) the purpose
of many organizations is changing
CALCULATING CASH FLOW - <<<Answers>>>EBIT +
DEPRECIATION - TAXES
