WGU C483 - Principles of Management Exam
Accommodation A style of dealing with conflict involving cooperation on behalf of the other party
but not being assertive about one's own interests
Accountability 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 Procedures used to verify accounting reports and statements
Acquisition One firm buying another
Activity-based costing (ABC) 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 Companies that take the current industry structure and its evolution as givens,
and choose where to compete
Adverse impact When a seemingly neutral employment practice has a disproportionately
negative effect on a protected group
Advertising support model Charging fees to advertise on a site
Affective conflict Emotional disagreement directed toward other people
Affiliate model Charging fees to direct site visitors to other companies' sites
Affirmative action Special efforts to recruit and hire qualified members of groups that have been
discriminated against in the past
After-action review A frank and open-minded discussion of four basic questions aimed at continuous
improvement
Alderfer's ERG theory A human needs theory postulating that people have three basic sets of needs
that can operate simultaneously (Existence, Relatedness and Growth)
Arbitration The use of a neutral third party to resolve a labor dispute
Assessment center A managerial performance test in which candidates participate in a variety of
exercises and situations
Assets The values of the various items the corporation owns
, WGU C483 - Principles of Management Exam
Authentic leadership A style in which the leader is true to himself or herself while leading
Authority The legitimate right to make decisions and to tell other people what to do
Autocratic leadership 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 Groups that control decisions about and execution of a complete range of tasks
Avoidance A reaction to conflict that involves ignoring the problem by doing nothing at all or
deemphasizing the disagreement
Balanced scorecard Control system combining four sets of performance measures: financial,
customer, business process, and learning and growth
Balance sheet A report that shows the financial picture of a company at a given time and
itemizes assets, liabilities, and stockholders' equity
Barriers to entry Conditions that prevent new companies from entering an industry
Behavioral approach A leadership perspective that attempts to identify what good leaders do—that is,
what behaviors they exhibit
Benchmarking The process of comparing an organization's practices and technologies with
those of other companies
Bootlegging Informal work on projects, other than those officially assigned, of employees' own
choosing and initiative
Boundaryless organization Organization in which there are no barriers to information flow
Boundary-spanning Interacting with people in other groups, thus creating linkages between groups
Bounded rationality 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 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 A person who assembles and coordinates participants in a network
, WGU C483 - Principles of Management Exam
Budgeting 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 Creating supplies of excess resources in case of unpredictable needs
Bureaucratic control The use of rules, regulations, and authority to guide performance
Business accelerators Organization that provides support and advice to help young businesses grow
Business ethics The moral principles and standards that guide behavior in the world of business
Business incubators Protected environments for new, small businesses
Business plan A formal planning step that focuses on the entire venture and describes all the
elements involved in starting it
Business strategy The major actions by which a business competes in a particular industry or
market
Cafeteria benefit program An employee benefit program in which employees choose from a menu of
options to create a benefit package tailored to their needs
Carbon footprint The output of carbon dioxide and other greenhouses gases
Caux Principles Ethical principles established by international executives based in Caux,
Switzerland, in collaboration with business leaders from Japan, Europe, and the
United States
Centralized organization An organization in which high-level executives make most decisions and pass
them down to lower levels for implementation
Certainty The state that exists when decision makers have accurate and comprehensive
information
Charismatic leader A person who is dominant, self-confident, convinced of the moral righteousness
of his or her beliefs, and able to arouse a sense of excitement and adventure in
followers
Chief information officer (CIO) Executive in charge of information technology strategy and development
Clan control Control based on the norms, values, shared goals, and trust among group
members
Accommodation A style of dealing with conflict involving cooperation on behalf of the other party
but not being assertive about one's own interests
Accountability 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 Procedures used to verify accounting reports and statements
Acquisition One firm buying another
Activity-based costing (ABC) 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 Companies that take the current industry structure and its evolution as givens,
and choose where to compete
Adverse impact When a seemingly neutral employment practice has a disproportionately
negative effect on a protected group
Advertising support model Charging fees to advertise on a site
Affective conflict Emotional disagreement directed toward other people
Affiliate model Charging fees to direct site visitors to other companies' sites
Affirmative action Special efforts to recruit and hire qualified members of groups that have been
discriminated against in the past
After-action review A frank and open-minded discussion of four basic questions aimed at continuous
improvement
Alderfer's ERG theory A human needs theory postulating that people have three basic sets of needs
that can operate simultaneously (Existence, Relatedness and Growth)
Arbitration The use of a neutral third party to resolve a labor dispute
Assessment center A managerial performance test in which candidates participate in a variety of
exercises and situations
Assets The values of the various items the corporation owns
, WGU C483 - Principles of Management Exam
Authentic leadership A style in which the leader is true to himself or herself while leading
Authority The legitimate right to make decisions and to tell other people what to do
Autocratic leadership 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 Groups that control decisions about and execution of a complete range of tasks
Avoidance A reaction to conflict that involves ignoring the problem by doing nothing at all or
deemphasizing the disagreement
Balanced scorecard Control system combining four sets of performance measures: financial,
customer, business process, and learning and growth
Balance sheet A report that shows the financial picture of a company at a given time and
itemizes assets, liabilities, and stockholders' equity
Barriers to entry Conditions that prevent new companies from entering an industry
Behavioral approach A leadership perspective that attempts to identify what good leaders do—that is,
what behaviors they exhibit
Benchmarking The process of comparing an organization's practices and technologies with
those of other companies
Bootlegging Informal work on projects, other than those officially assigned, of employees' own
choosing and initiative
Boundaryless organization Organization in which there are no barriers to information flow
Boundary-spanning Interacting with people in other groups, thus creating linkages between groups
Bounded rationality 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 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 A person who assembles and coordinates participants in a network
, WGU C483 - Principles of Management Exam
Budgeting 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 Creating supplies of excess resources in case of unpredictable needs
Bureaucratic control The use of rules, regulations, and authority to guide performance
Business accelerators Organization that provides support and advice to help young businesses grow
Business ethics The moral principles and standards that guide behavior in the world of business
Business incubators Protected environments for new, small businesses
Business plan A formal planning step that focuses on the entire venture and describes all the
elements involved in starting it
Business strategy The major actions by which a business competes in a particular industry or
market
Cafeteria benefit program An employee benefit program in which employees choose from a menu of
options to create a benefit package tailored to their needs
Carbon footprint The output of carbon dioxide and other greenhouses gases
Caux Principles Ethical principles established by international executives based in Caux,
Switzerland, in collaboration with business leaders from Japan, Europe, and the
United States
Centralized organization An organization in which high-level executives make most decisions and pass
them down to lower levels for implementation
Certainty The state that exists when decision makers have accurate and comprehensive
information
Charismatic leader A person who is dominant, self-confident, convinced of the moral righteousness
of his or her beliefs, and able to arouse a sense of excitement and adventure in
followers
Chief information officer (CIO) Executive in charge of information technology strategy and development
Clan control Control based on the norms, values, shared goals, and trust among group
members
