WGU C483 - Principles of Management
Exam UPDATED ACTUAL QUESTIONS
AND CORRECT ANSWERS
Accommodation - CORRECT ANSWER A style of dealing with conflict involving cooperation
on behalf of the other party but not being assertive about one's own interests
Accountability - CORRECT ANSWER The expectation that employees will perform a job,
take corrective action when necessary, and report upward on the status and quality of their
performance
Accounting audits - CORRECT ANSWER Procedures used to verify accounting reports and
statements
Acquisition - CORRECT ANSWER One firm buying another
Activity-based costing (ABC) - CORRECT ANSWER A method of cost accounting designed
to identify streams of activity and then to allocate costs across particular business processes according
to the amount of time employees devote to particular activities
Adapters - CORRECT ANSWER Companies that take the current industry structure and its
evolution as givens, and choose where to compete
Adverse impact - CORRECT ANSWER When a seemingly neutral employment practice has a
disproportionately negative effect on a protected group
Advertising support model - CORRECT ANSWER Charging fees to advertise on a site
Affective conflict - CORRECT ANSWER Emotional disagreement directed toward other
people
Affiliate model - CORRECT ANSWER Charging fees to direct site visitors to other companies'
sites
,Affirmative action - CORRECT ANSWER Special efforts to recruit and hire qualified
members of groups that have been discriminated against in the past
After-action review - CORRECT ANSWER A frank and open-minded discussion of four basic
questions aimed at continuous improvement
Alderfer's ERG theory - CORRECT ANSWER A human needs theory postulating that people
have three basic sets of needs that can operate simultaneously (Existence, Relatedness and Growth)
Arbitration - CORRECT ANSWER The use of a neutral third party to resolve a labor dispute
Assessment center - CORRECT ANSWER A managerial performance test in which candidates
participate in a variety of exercises and situations
Assets - CORRECT ANSWER The values of the various items the corporation owns
Authentic leadership - CORRECT ANSWER A style in which the leader is true to himself or
herself while leading
Authority - CORRECT ANSWER The legitimate right to make decisions and to tell other
people what to do
Autocratic leadership - CORRECT ANSWER A form of leadership in which the leader makes
decisions on his or her own and then announces those decisions to the group
Autonomous work groups - CORRECT ANSWER Groups that control decisions about and
execution of a complete range of tasks
Avoidance - CORRECT ANSWER A reaction to conflict that involves ignoring the problem by
doing nothing at all or deemphasizing the disagreement
,Balanced scorecard - CORRECT ANSWER Control system combining four sets of
performance measures: financial, customer, business process, and learning and growth
Balance sheet - CORRECT ANSWER A report that shows the financial picture of a company
at a given time and itemizes assets, liabilities, and stockholders' equity
Barriers to entry - CORRECT ANSWER Conditions that prevent new companies from entering
an industry
Behavioral approach - CORRECT ANSWER A leadership perspective that attempts to identify
what good leaders do—that is, what behaviors they exhibit
Benchmarking - CORRECT ANSWER The process of comparing an organization's practices
and technologies with those of other companies
Bootlegging - CORRECT ANSWER Informal work on projects, other than those officially
assigned, of employees' own choosing and initiative
Boundaryless organization - CORRECT ANSWER Organization in which there are no barriers
to information flow
Boundary-spanning - CORRECT ANSWER Interacting with people in other groups, thus
creating linkages between groups
Bounded rationality - CORRECT ANSWER A less-than-perfect form of rationality in which
decision makers cannot be perfectly rational because decisions are complex and complete information
is unavailable or cannot be fully processed
Brainstorming - CORRECT ANSWER A process in which group members generate as many
ideas about a problem as they can; criticism is withheld until all ideas have been proposed
Broker - CORRECT ANSWER A person who assembles and coordinates participants in a
network
, Budgeting - CORRECT ANSWER The process of investigating what is being done and
comparing the results with the corresponding budget data to verify accomplishments or remedy
differences; also called budgetary controlling
Buffering - CORRECT ANSWER Creating supplies of excess resources in case of
unpredictable needs
Bureaucratic control - CORRECT ANSWER The use of rules, regulations, and authority to
guide performance
Business accelerators - CORRECT ANSWER Organization that provides support and advice to
help young businesses grow
Business ethics - CORRECT ANSWER The moral principles and standards that guide behavior
in the world of business
Business incubators - CORRECT ANSWER Protected environments for new, small businesses
Business plan - CORRECT ANSWER A formal planning step that focuses on the entire
venture and describes all the elements involved in starting it
Business strategy - CORRECT ANSWER The major actions by which a business competes in
a particular industry or market
Cafeteria benefit program - CORRECT ANSWER An employee benefit program in which
employees choose from a menu of options to create a benefit package tailored to their needs
Carbon footprint - CORRECT ANSWER The output of carbon dioxide and other greenhouses
gases
Caux Principles - CORRECT ANSWER Ethical principles established by international
executives based in Caux, Switzerland, in collaboration with business leaders from Japan, Europe, and
the United States
Exam UPDATED ACTUAL QUESTIONS
AND CORRECT ANSWERS
Accommodation - CORRECT ANSWER A style of dealing with conflict involving cooperation
on behalf of the other party but not being assertive about one's own interests
Accountability - CORRECT ANSWER The expectation that employees will perform a job,
take corrective action when necessary, and report upward on the status and quality of their
performance
Accounting audits - CORRECT ANSWER Procedures used to verify accounting reports and
statements
Acquisition - CORRECT ANSWER One firm buying another
Activity-based costing (ABC) - CORRECT ANSWER A method of cost accounting designed
to identify streams of activity and then to allocate costs across particular business processes according
to the amount of time employees devote to particular activities
Adapters - CORRECT ANSWER Companies that take the current industry structure and its
evolution as givens, and choose where to compete
Adverse impact - CORRECT ANSWER When a seemingly neutral employment practice has a
disproportionately negative effect on a protected group
Advertising support model - CORRECT ANSWER Charging fees to advertise on a site
Affective conflict - CORRECT ANSWER Emotional disagreement directed toward other
people
Affiliate model - CORRECT ANSWER Charging fees to direct site visitors to other companies'
sites
,Affirmative action - CORRECT ANSWER Special efforts to recruit and hire qualified
members of groups that have been discriminated against in the past
After-action review - CORRECT ANSWER A frank and open-minded discussion of four basic
questions aimed at continuous improvement
Alderfer's ERG theory - CORRECT ANSWER A human needs theory postulating that people
have three basic sets of needs that can operate simultaneously (Existence, Relatedness and Growth)
Arbitration - CORRECT ANSWER The use of a neutral third party to resolve a labor dispute
Assessment center - CORRECT ANSWER A managerial performance test in which candidates
participate in a variety of exercises and situations
Assets - CORRECT ANSWER The values of the various items the corporation owns
Authentic leadership - CORRECT ANSWER A style in which the leader is true to himself or
herself while leading
Authority - CORRECT ANSWER The legitimate right to make decisions and to tell other
people what to do
Autocratic leadership - CORRECT ANSWER A form of leadership in which the leader makes
decisions on his or her own and then announces those decisions to the group
Autonomous work groups - CORRECT ANSWER Groups that control decisions about and
execution of a complete range of tasks
Avoidance - CORRECT ANSWER A reaction to conflict that involves ignoring the problem by
doing nothing at all or deemphasizing the disagreement
,Balanced scorecard - CORRECT ANSWER Control system combining four sets of
performance measures: financial, customer, business process, and learning and growth
Balance sheet - CORRECT ANSWER A report that shows the financial picture of a company
at a given time and itemizes assets, liabilities, and stockholders' equity
Barriers to entry - CORRECT ANSWER Conditions that prevent new companies from entering
an industry
Behavioral approach - CORRECT ANSWER A leadership perspective that attempts to identify
what good leaders do—that is, what behaviors they exhibit
Benchmarking - CORRECT ANSWER The process of comparing an organization's practices
and technologies with those of other companies
Bootlegging - CORRECT ANSWER Informal work on projects, other than those officially
assigned, of employees' own choosing and initiative
Boundaryless organization - CORRECT ANSWER Organization in which there are no barriers
to information flow
Boundary-spanning - CORRECT ANSWER Interacting with people in other groups, thus
creating linkages between groups
Bounded rationality - CORRECT ANSWER A less-than-perfect form of rationality in which
decision makers cannot be perfectly rational because decisions are complex and complete information
is unavailable or cannot be fully processed
Brainstorming - CORRECT ANSWER A process in which group members generate as many
ideas about a problem as they can; criticism is withheld until all ideas have been proposed
Broker - CORRECT ANSWER A person who assembles and coordinates participants in a
network
, Budgeting - CORRECT ANSWER The process of investigating what is being done and
comparing the results with the corresponding budget data to verify accomplishments or remedy
differences; also called budgetary controlling
Buffering - CORRECT ANSWER Creating supplies of excess resources in case of
unpredictable needs
Bureaucratic control - CORRECT ANSWER The use of rules, regulations, and authority to
guide performance
Business accelerators - CORRECT ANSWER Organization that provides support and advice to
help young businesses grow
Business ethics - CORRECT ANSWER The moral principles and standards that guide behavior
in the world of business
Business incubators - CORRECT ANSWER Protected environments for new, small businesses
Business plan - CORRECT ANSWER A formal planning step that focuses on the entire
venture and describes all the elements involved in starting it
Business strategy - CORRECT ANSWER The major actions by which a business competes in
a particular industry or market
Cafeteria benefit program - CORRECT ANSWER An employee benefit program in which
employees choose from a menu of options to create a benefit package tailored to their needs
Carbon footprint - CORRECT ANSWER The output of carbon dioxide and other greenhouses
gases
Caux Principles - CORRECT ANSWER Ethical principles established by international
executives based in Caux, Switzerland, in collaboration with business leaders from Japan, Europe, and
the United States
