WGU C483 Principles of Management - Exam 2 Questions and
Answers and Explanations | Latest
1. Which level of management is primarily responsible for developing long-term
strategic plans that affect the entire organization?
A. First-line managers
B. Middle managers
C. Team leaders
D. Top managers
Answer: D
Explanation: Top managers are responsible for the overall direction of the organization
and the development of long-range strategic goals.
2. In a SWOT analysis, which two components focus on factors external to the
organization?
A. Strengths and Weaknesses
B. Opportunities and Threats
C. Strengths and Opportunities
D. Weaknesses and Threats
Answer: B
,Explanation: Strengths and weaknesses are internal factors, while opportunities and
threats are external environmental factors.
3. What does the ‘M’ in SMART goals stand for?
A. Manageable
B. Meaningful
C. Measurable
D. Motivating
Answer: C
Explanation: SMART goals must be Specific, Measurable, Attainable, Relevant, and Time-
bound.
4. A decision that is repetitive and can be handled using a routine approach is
known as a:
A. Non-programmed decision
B. Strategic decision
C. Unstructured decision
D. Programmed decision
Answer: D
Explanation: Programmed decisions are routine or repetitive and can be solved using
rules or standard operating procedures.
,5. Which concept describes the situation where decision makers have limits on
their ability to process information and make perfectly rational choices?
A. Bounded rationality
B. Satisficing
C. Intuition
D. Escalation of commitment
Answer: A
Explanation: Bounded rationality suggests that managers make the most logical decisions
they can within the limits of their information and processing capability.
6. The tendency of group members to strive for agreement such that they fail to
realistically appraise alternative courses of action is called:
A. Brainstorming
B. Groupthink
C. Social loafing
D. Synergy
Answer: B
Explanation: Groupthink occurs when the desire for harmony in a decision-making group
overrides a realistic appraisal of alternatives.
, 7. Which term refers to the number of employees who report directly to a
specific manager?
A. Chain of command
B. Unity of command
C. Span of control
D. Hierarchy
Answer: C
Explanation: Span of control (or span of management) refers to the number of
subordinates a supervisor manages directly.
8. In which organizational structure are employees assigned to both a functional
department and a project or product team?
A. Divisional structure
B. Matrix structure
C. Simple structure
D. Network structure
Answer: B
Explanation: The matrix structure creates a dual chain of command, where employees
report to both a functional manager and a project manager.
Answers and Explanations | Latest
1. Which level of management is primarily responsible for developing long-term
strategic plans that affect the entire organization?
A. First-line managers
B. Middle managers
C. Team leaders
D. Top managers
Answer: D
Explanation: Top managers are responsible for the overall direction of the organization
and the development of long-range strategic goals.
2. In a SWOT analysis, which two components focus on factors external to the
organization?
A. Strengths and Weaknesses
B. Opportunities and Threats
C. Strengths and Opportunities
D. Weaknesses and Threats
Answer: B
,Explanation: Strengths and weaknesses are internal factors, while opportunities and
threats are external environmental factors.
3. What does the ‘M’ in SMART goals stand for?
A. Manageable
B. Meaningful
C. Measurable
D. Motivating
Answer: C
Explanation: SMART goals must be Specific, Measurable, Attainable, Relevant, and Time-
bound.
4. A decision that is repetitive and can be handled using a routine approach is
known as a:
A. Non-programmed decision
B. Strategic decision
C. Unstructured decision
D. Programmed decision
Answer: D
Explanation: Programmed decisions are routine or repetitive and can be solved using
rules or standard operating procedures.
,5. Which concept describes the situation where decision makers have limits on
their ability to process information and make perfectly rational choices?
A. Bounded rationality
B. Satisficing
C. Intuition
D. Escalation of commitment
Answer: A
Explanation: Bounded rationality suggests that managers make the most logical decisions
they can within the limits of their information and processing capability.
6. The tendency of group members to strive for agreement such that they fail to
realistically appraise alternative courses of action is called:
A. Brainstorming
B. Groupthink
C. Social loafing
D. Synergy
Answer: B
Explanation: Groupthink occurs when the desire for harmony in a decision-making group
overrides a realistic appraisal of alternatives.
, 7. Which term refers to the number of employees who report directly to a
specific manager?
A. Chain of command
B. Unity of command
C. Span of control
D. Hierarchy
Answer: C
Explanation: Span of control (or span of management) refers to the number of
subordinates a supervisor manages directly.
8. In which organizational structure are employees assigned to both a functional
department and a project or product team?
A. Divisional structure
B. Matrix structure
C. Simple structure
D. Network structure
Answer: B
Explanation: The matrix structure creates a dual chain of command, where employees
report to both a functional manager and a project manager.
