Principles of Management CLEP Exam Practice Test

Which of the following words is NOT a step in the management process? a. Planning b. leading c. Producing d controlling e. organizing Correct Answer-c A homebuilder dominates a market by offereing attractive options, higher quality and value-added services. Which of the following competitive strategies has the homebuilder adopted? a. cost leadership b. differentiation c. price leadership d. generic e. design focus Correct Answer-b Which of the following is a correct statement about controlling as a management function? a. it can be performed independently of planning. b. it is performed only by the controller of an organization. c. it is more prevalent in business than in government. d. it assumes a certain approach to motivating employees. e. it must be closely related to planning in order to work efficiently. Correct Answer-e Decentralization tends to be encouraged by which of the following business trends? I. Product diverstification II. Telecommunting III. Geographical expansion of operations a. I only b. II only c. III only d. I and III only e I, II, and III Correct Answer-e Which of the following can be best determined by consulting an organization chart? a. the size of the company b. the distribution of company resources c. the nature of work performed d. the connections of positions e. the quality of management of the firm Correct Answer-d The number of subordinates who directly report to a superior refers to the managers: a. span of control b. organizational role c. organizational structure d. chain of command e. general staff Correct Answer-a Which of the following best illustrates informal organization? a. line authority, such as that of the field marshal and battalion commander in the military b. staff authority, such as that of personnel or cost control in manufacturing c. functional authority, such as corporate supervision of the legal aspect of pension plans in branch plants d. groupings based on position titles e. groupings based on such factors as technical ability, seniority, and personal influence Correct Answer-e