Driving by a factory, you observe union workers on strike. Which of the following likely characterized the bargaining between the union and the factory’s owners. a. A non-strategic view of bargaining b. Low disagreement values c. High gains from trade d. A lack of credibility Ellie and Jacob are bargaining over the future profit of their lemonade stand. If Ellie has an outside option of $60 and Jacob has an outside option of $30, which of the following is most likely to be true? a. Ellie will receive 2/3 of the profit and Jacob will receive 1/3. b. Ellie and Jacob will split the profit evenly. c. Ellie will receive $30 more of the profit than Jacob. d. Ellie will receive $15 more of the profit than Jacob. Which of the following is most likely to increase the amount you receive in a bargain? a. Decreasing your opponent’s outside option. b. Decreasing the value of the agreement. c. Decreasing your outside option. d. None of these increase the amount you receive. Two companies are considering a joint venture that can yield $600,000 in revenue. To succeed, the joint venture requires a cash investment from Company A and the use of a factory owned by Company B. Specifically, Company A would need to invest $200,000 and Company B’s factory would need to switch away from current production worth $500,000. Which of the following is most likely? a. Company B will receive a greater share of the proceeds from the joint venture than Company A. b. Company A will receive a greater share of the proceeds from the joint venture than Company B. c. Company A and B will agree to split the joint venture proceeds equally. d. The companies will not form the joint venture. A soccer player is expected to generate $1.6 million in annual revenue for a team. If his negotiated salary is $800,000 per year, what is the value of his outside option? a. $800,000 b. $1,200,000 c. $0 d. $400,000 The expected value of a gamble that pays $10 with probability 0.2 and $-4 with probability 0.8 is: a. $7.20 b. $3.00 c. $-1.20 d. $-2.10 Gamble A pays $100 with probability 40% and $-30 with probability 60%. Gamble B pays $160 with probability 30% and $-40 with probability 70%. Which would you choose as the higher expected value? a. Choose A because it is obviously higher b. Choose B because it is obviously higher c. They are essentially the same d. Choose neither you are stumped Market research shows that there high-value customers are willing to pay $200 for your house cleaning service and low-value customers are willing to pay $175. High value types represent 40% of the population. If marginal cost is $100, which is the optimal strategy? a. Set a price of $175. b. Set a price of 200. c. Set a price of $175 plus a handling charge of $25 d. Set a price of $200, but for customers who decline, contact them later with a $25 discount. Managers who can get more projec ...

1. Driving by a factory, you observe union workers on strike.
Which of the following likely characterized the bargaining
between the union and the factory’s owners.
a. A non-strategic view of bargaining
b. Low disagreement values
c. High gains from trade
d. A lack of credibility
Ellie and Jacob are bargaining over the future profit of their
lemonade stand. If Ellie has an outside option of $60 and Jacob
has an outside option of $30, which of the following is most
likely to be true?
a. Ellie will receive 2/3 of the profit and Jacob will receive 1/3.
b. Ellie and Jacob will split the profit evenly.
c. Ellie will receive $30 more of the profit than Jacob.

2. d. Ellie will receive $15 more of the profit than Jacob.
Which of the following is most likely to increase the amount
you receive in a bargain?
a. Decreasing your opponent’s outside option.
b. Decreasing the value of the agreement.
c. Decreasing your outside option.
d. None of these increase the amount you receive.
Two companies are considering a joint venture that can yield
$600,000 in revenue. To succeed, the joint venture requires a
cash investment from Company A and the use of a factory
owned by Company B. Specifically, Company A would need to
invest $200,000 and Company B’s factory would need to switch
away from current production worth $500,000. Which of the
following is most likely?
a. Company B will receive a greater share of the proceeds from
the joint venture than Company A.

3. b. Company A will receive a greater share of the proceeds from
the joint venture than Company B.
c. Company A and B will agree to split the joint venture
proceeds equally.
d. The companies will not form the joint venture.
A soccer player is expected to generate $1.6 million in annual
revenue for a team. If his negotiated salary is $800,000 per
year, what is the value of his outside option?
a. $800,000
b. $1,200,000
c. $0
d. $400,000
The expected value of a gamble that pays $10 with probability
0.2 and $-4 with probability 0.8 is:

4. a. $7.20
b. $3.00
c. $-1.20
d. $-2.10
Gamble A pays $100 with probability 40% and $-30 with
probability 60%. Gamble B pays $160 with probability 30% and
$-40 with probability 70%. Which would you choose as the
higher expected value?
a. Choose A because it is obviously higher
b. Choose B because it is obviously higher
c. They are essentially the same
d. Choose neither you are stumped
Market research shows that there high-value customers are

5. willing to pay $200 for your house cleaning service and low-
value customers are willing to pay $175. High value types
represent 40% of the population. If marginal cost is $100, which
is the optimal strategy?
a. Set a price of $175.
b. Set a price of 200.
c. Set a price of $175 plus a handling charge of $25
d. Set a price of $200, but for customers who decline, contact
them later with a $25 discount.
Managers who can get more projects approved and oversee more
assets get promoted faster. When making proposals to
headquarters for new projects, these managers tend to develop
support with analyses they perform.
a. Because they have an incentive to get projects approved, they
may have created comparison groups that make their proposal
look better than it is.
b. Because they have an incentive to get projects approved, they
may have created comparison groups that make their proposal
look worse than it is.

6. c. So long as it appears they made an honest effort to address
selection bias, you can trust their analyses.
d. There is no scope for them to skew results with faulty
comparison groups.
When devising a strategy with considerable uncertainty:
a. develop a plan that is complex enough to handle every
conceivable contingency.
b. develop a plan that leaves room for improvising when you
experience an eventuality you did not anticipate.
c. develop a plan that, when you experience an eventuality you
did not anticipate, you ignore it.
d. develop a plan that, when you experience an eventuality you
did not anticipate, you scrap the whole strategy.

7. Writing Style Guide
COMMON BUSINESS ERRORS
CONTRACTIONS
IT’S
It’s imperative that we complete this form.
It is imperative that we complete this form.
THEY’RE
They’re requiring the use of secured email.
They are requiring the use of secured email.
WHO’S
This website will explain who’s eligible for coverage.
This website will explain who is eligible for coverage.
YOU’RE
You’re allowed to deposit up to $250 per paycheck to an
account.
You are allowed to deposit up to $250 per paycheck to an
account.
POSSESSIVE ADJECTIVES
ITS
Our company achieved its sales goals last year.
THEIR

8. Their strategy is similar to ours.
WHOSE
The group needs to decide whose ideas will work best.
YOUR
Your work is exceptional.
CONFUSING WORDS
ADVISE / ADVICE
We advise our clients on choosing the best plans.
We offer advice on choosing the best plans.
AFFECT / EFFECT
Overhead will affect our profits. The law will affect my taxes.
AFFECT is a verb.
Overhead will have an effect on our profits. The law will have
an effect on my taxes.
EFFECT is a noun. Use EFFECT with OF and ON.
COMPLEMENT / COMPLIMENT
Team members complement each other by bringing different
strengths to the table.

9. When she told me the job was done well, it was a true
compliment.
We were served a complimentary breakfast before the meeting.
DEFINITELY / DEFIANTLY
I am definitely interested in the position.
The boy defiantly disobeyed his parents.
DEPRECATION / DEPRECIATION
Self-deprecation is an unappealing personality trait.
Depreciation of the assets is calculated using this formula.
LEAD / LED
I want you to take the lead on this project. Scientists found lead
in the water.
If you lead, I will follow. The manager led the team.
LOSE / LOOSE
We cannot afford to lose the client.
My shoelaces were loose, so I had to tie them again.
MANAGER / MANGER
John Smith is the manager of the department.
During the Christmas season, you may find a manger on display.

10. MANNER / MANOR
I will approach the problem in a different manner.
The reception will be held at Hillsdale Manor, the president’s
estate.
MINER / MINOR
The miner was hired to work in the coal mine.
This is a minor problem. My major is finance and my
minor is marketing.
MORALE / MORAL
Employee morale was improved by the salary increases.
Employees need to have moral standards when they conduct
business.
PASSED / PAST
I passed the test with flying colors.
In the past, we have been profitable.
POSSESS / POSSES
I possess the skills necessary for the job.
The sheriff and his deputy rounded up posses for the
manhunt.

11. PRINCIPLE / PRINCIPAL
Companies expect employees to have moral principles.
PRINCIPLE means guidelines.
As a principal at ABC Accounting Firm, Kevin has important
responsibilities.
John paid extra principal on his loan each month.
The principal ideas were presented by the high school principal.
PROSPECTIVE / PERSPECTIVE
I am sending my résumé to prospective employers.
I see things from a different perspective than you do.
REGARD / REGARDS
I regard him as an expert in the field.
The report is correct in that regard.
Please give my regards to Mr. Thompson.
ROLE / ROLL
Mary played an important role in the company.
A roll was served with the salad at dinner. I watched the ball
roll across the street.

12. THEN / THAN
We will complete the first phase and then move on to the
second.
If these numbers are correct, then we can pay off our debts.
THEN refers to time and is used with IF/THEN logic
statements.
Our profits are greater this year than they were last year.
I like this idea more than that one.
More often than not, my strategy works.
THAN is used for comparisons: less than, hotter than, shorter
than, older than,
more expensive than . . .
TO / TWO / TOO
I am going to the store.
I need two new computers.
I, too, would appreciate an answer. I am spending too much
money.
TOO shows degree: too little, too late, too hot, too cold, too
expensive . . .
Write these words as one word (not two): cannot, whereas,
nevertheless,
oftentimes, within, throughout, themselves, myself, himself,
aforementioned
Be specific with dates:

13. Tuesday, July 2, is more specific than recently. In 2016 is more
specific than
nowadays.
Stay consistently plural (or singular when necessary):
Incorrect: Once an employee submits their report, he or she
will earn a bonus
Correct: Once employees submit their reports, they will
earn bonuses.
Commas
A complete sentence has a subject (who or what) and verb
(action words or is, am, are,
was, was, were) plus additions.
automotive supplier.
Fragments occur when subjects and/or verbs are missing.
Fragment: Causing employee morale to increase.
Correct: The policy (subject) is causing (verb) employee
morale to increase.

14. RULE 1: Sentences can begin with conditional openers. Place a
comma after an
opener to show the subject follows. Short words such as
however are openers.
Longer openers begin with the words below:
According As Before If Unless Whenever
After At By In Until While
Although Because During Since When With
(subject) may rise.
communicated.
using voicemail.
Alone, openers are fragments.
Fragment: When we meet next week.
Correct: When we meet next week, we (subject) will discuss
(verb) bonuses.
RULE 2: Use a comma to divide complete sentences with a

15. conjunction (and, but,
or, nor, for, so, yet, whereas).
(verb) the issues.
Comma splices and run-ons occur when sentences are not
combined as follows:
n (subject) finished (verb) his report, and he (subject)
submitted (verb) it on
time.
submitted (verb) it on time.
submitted (verb) it on time.
Note: Semicolons divide complete sentences.
Incorrectly combined sentences:
Comma splice: John finished his report, he turned it in on time.
Run-on: John finished his report he turned it in on time.

16. RULE 3: Use commas with lists of three or more. Do not use
commas with lists
of two.
umbrellas.
Two Subjects:
nt
(subject) met
(verb) to discuss the reorganization.
head of human
resources (subject)met (verb) on Tuesday to discuss the
reorganization of the
company.
Two Verbs:
ct) finished (verb) the proposal and submitted
(verb) it on time.
win the debate.
Incorrect: Marie completed her report, and submitted it on
time.

17. Two Additions:
knew (verb) not only what to say but also when
to say it.
Walsh College.
RULE 4: Commas set off modifiers that are not essential to a
sentence.
Not essential: Jim Smith, who loves to travel, will be the head
of the department.
Essential: Employees who love to travel will be assigned
clients in Europe.
Not essential: Our CEO, Jan Smyth, signed the letter.
Essential: CEO Jan Smyth signed the letter.
Apostrophes
Use apostrophes to show possession.

18. Possessive and plural do not mean the same thing. Plural means
more than one of
something: desks, computers, companies, employees.
PROCESS FOR DETERMINING APOSTROPHE USE:
more than one (plural).
One: the company’s balance sheet
More than one: the companies’ balance sheets
One: the employee’s benefits
More than one: the employees’ benefits
One: the associate’s clients
More than one: the associates’ clients
RULE 1: If the noun is singular and ends in s, it is correct to
use either s’ or s’s.
Ford’s profits)
RULE 2: If the noun is plural and does not end is s, use 's.
oys, women’s
briefcases
RULE 3: Never use an apostrophe at the end of a noun that

19. does not show
possession.
Incorrect: Studies’ (subject) prove (verb) we can be energy
independent.
Note: The verb prove cannot be possessed.
RULE 4: Never use an apostrophe with a verb.
Incorrect: Innovation (subject) plays’ (verb) an important role
in our economy.
Note: The verb plays cannot possess anything.
SAMPLE EMAIL
TO: Name
FROM: Name
DATE: Month XX, XXXX
SUBJECT: Who, What, When
Hello Name:
Elitsedquianon umquameiusmodira tionev quivelit, sedquia non

20. numquameiusmodi.
Equeporroquisquamest, qui dolorem ipsum quia dolor ame,
consectetu, adii.
UNDE OMNIS ISTE
Quae ab illoinventoreveritatiset quasi architee:
dicta
suntexplicabo.
Kindly,
Name
Title
Contact Number
*Always know specific requirements (for class assignments or
company) of your
audience.

21. Use specific subject line making it easier to prioritize and
locate later.
Include appropriate greeting to the reader, followed by colon.
Provide information about attachments.
End courteously with what you expect reader to do next in
response to
email, executive summary, or report.
Include closing appropriate for reader (e.g., Sincerely, Thank
you, Thanks . . .) and
include your title and contact information or automatic email
signature.
SAMPLE EXECUTIVE SUMMARY FORMAT*
Executive Summary
Title
Prepared by: Name(s)
Month Day, Year

22. Elit sed quia non numquam eius modi ratione voluptatem
sequivelit, sed quia non
numquam eius modi.Natus jerror sit voluptatem accusantium
doloremque laudantium,
totam rem aperiam, eaque idolores.
UNDE OMNIS
Quae ab illo inventore veritatis et quasi architec beatae:
doloremque laudantium,
totam.
vitae dicta sunt
explicabo. Nemo enim fugit.
UNDE OMNIS ISTE
Eque porro quisquam est, qui dolorem ipsum quia dolor sit
amet, consectetur, adipisci
qu ab illo inventore veritatis et quasi architecto.Eque porro
quisquam.

23. *Always know specific requirements (for class assignments or
company) of your
audience.
*The font style in this example is lorem ipsum text to show
formatting, not content.
Start with introductory paragraph and brief overview (introduce
report or state research/project to
be summarized and its business purpose/relevance to reader).
Use descriptive headings (in bold and/or underlined) to organize
content and visual
cues (bullet points, graphs) to emphasize main points and to
present information in
an easy-to-read manner.
End with recommendations (next steps or ways business can use
research) along with conclusion.
Include page numbers on all business documents over one page.
SAMPLE BUSINESS LETTER FORMAT

24. Jane Doe
Director, Claims
ABC Services
12345 Main St.
Troy, MI48083
January 15, XXXX
John Adams
Claims Specialist
XYZCorporation
6789 Oak St.
Troy, MI48083
Dear Mr. Adams:
Natusztperspicia sjerror sit
voluptatemaccusantiumdoloremquelaudantiumremaperiam,
eaqueipsamagnidot.
Ttperspiciatisnatusjerrorsit
voluptatemaccusantiumdoloremquelaudantium,totamrem
aperiam, edoloreseos rationevoluptatemsequinesciun.
Ttperspiciatisnatusjerror psit
voluptatemaccusantiumdoloremquelaudantium, otam
aperiamEeaqu.
Sincerely,

25. Jane Doe
Director, Claims
Enclosure
Include your name and contact information at left margin or
centered
depending on letterhead for specific companies.
Include date with spacing above and below adjusted to center
letter.
Include name and contact information of the person receiving
letter.
Include greeting with courtesy title (Mr., Ms., Dr.) followed by
colon.
Leave four blank lines after the closing for your signature.
Use Enclosure if additional document/s included.