Originally published in Carroll Capital, the print publication of the Carroll School of Management at Boston College. Read the June 2025 issue here.
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?
Six years ago, Carroll School faculty and deans began tackling these questions and crafted answers—in 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
“We don’t want our courses to be a checklist for students—‘We took the class, we’re done, and we don’t have to think about it anymore,’” says Ethan Sullivan, senior associate dean for the undergraduate program. “So we came up with the senior assessment, which is basically the things we want all of our students to know when they graduate.”
The (ungraded) exam reflects the school’s 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.
What follows is a 12-question version of the assessment.
1. "Creative destruction" refers to:
A. The elimination of entire industries because of new ones created by technology
B. The destruction of jobs due to the creation of new industires
C. Value creation of better quality and lower prices due to innovation
D. All of these answers
2. Which case could qualify as a disruptive innovation?
A. Laptops vs. desktops
B. Streaming vs. DVDs
C. Trains vs. trucks for cargo
D. Uber vs. traditional taxis
3. Jessica Springer, a Pascal’s Bank sales executive, is upset at the way her manager, Ella Womack, always calls her in for one-on-one meetings to discuss Springer’s 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’s economic downturn. However, her manager, Womack, believes that Springer’s underperformance is the result of her laid-back attitude, not the economy. Womack’s beliefs are BEST characterized by ______.
A. Escalation of commitment
B. Availabilty bias
C. Fundamental attribution error
D. Contrast effect
4. Why do online grocers have a competetive advantage over traditional grocery stores?
A. Online grocers offer more products than traditional grocery stores
B. Online grocers are more efficient at grocery delivery
C. Online grocers prioritize the needs of customers more than traditional grocers
D. Online grocers collect data to customize the shopping experience
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%?
A. $7.37
B. $7.14
C. $7.07
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?
A. Expenses are understated and net income is understated.
B. Net income is overstated and assets are overstated.
C. Net income is overstated and stockholders' equity is understated.
D. None of these answers.
7. 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 “Cola” 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
C. $45 million
D. $25 million
8. During the current year, Rock Company’s cash balance increased from $79,000 to $91,300. Rock’s net cash inflow from operating activities was $37,300, and its net cash inflow from financing activities was $11,100. How much was Rock’s net cash flow from investing activities?
A. A net cash outflow of $60,700
B. A net cash outflow of $42,900
C. A net cash outflow of $36,100
D. A net cash inflow of $60,700
9. Hermès 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’s, also a store that sells women’s fashion accessories, decides to package their products in bright orange bags. Hermès sues for a violation of its trademark. What is the result?
A. Hermès will lose because orange is not novel.
B. Hermès will win only if it can prove it is losing customers to Carla's.
C. Hermès will lose because orange is not distinctive.
D. Hermès will win if it can prove that a customer is likely to be decieved by the orange bags.
10. Which of the following are costs associated with holding inventory?
I. Opportunity cost of capital
II. Insurance (for theft, damage, devaluation,obsolescence, etc.)
III. Warehousing
A. II only
B. III only
C. I, II, and III
D. II and 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:
A. Following deontology
B. Practicing conscious capatalism
C. Applying utilitarian phlilosophy
D. Using virtue ethics
12. Which of these changes indicates an improvement in a firm's asset management efficiency?
A. An increase in the amount of assets per dollar of sales
B. An increase in the inventory turnover rate
C. An increase in the average days in inventory
D. A decrease in the receivables turnover rate
Answer Key
1. D 2. B 3. C 4. D 5. A 6. B
7. D 8. C 9. D 10. C 11. C 12. B
