CPSM EXAM 3 2025 QUESTIONS AND
ANSWERS
Storming - ANS The time when a group experiences chaotic vying for leadership and
attempts at group processes. Team members may challenge goals and objectives of the team.
Personal agendas may also start to emerge at this time.
Forming - ANS When the group comes together initially and gets to know one another. The
team organizes itself. For Example, the team sets operating procedures, clearly defines its
charter and sets timelines.
Norming - ANS The team establishes ways of prioritizing issues, clearly defining goals and
objectives and arriving at an agreement on how the task should be carried out. The group
coming to an agreement on how to operate.
Performing - ANS When the group does the work to accomplish goals.
adjouring stage - ANS Usually includes a wrap-up period as well as a review to determine
whether or not they have accomplished what they were chartered to do.
Punitive Damages - ANS Awarded as punishment and or deterrent when a defendant is
found to have done wrong intentionally or deliberately. Punitive damages are rarely awarded in
breach of contract disputes.
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, Actual Damages - ANS Compensate for the amount of proven harm, loss, or injury suffered
by the plaintiff.
Liquidated Damages - ANS Those agreed upon during the formation of a contract, to be paid
by the breaching party in the event of a defined breach of contract.
Specific Performance - ANS A special remedy where the court orders the seller to perform
the contract as agreed rather than awarding monetary damages.
Theory Y - ANS Starts from the premise that people are self motivated and intrinsically seek
to do a good job.
Theory X - ANS Starts from the premise that people are naturally lazy and need to be driven
by external forces to do good work. These managers operate from a control and punishment
perspective and use fear to motivate people.
Span of Control - ANS The number of people a manager supervises
Management by Objectives (MBO) - ANS Is a form of participatory management in which
employee and supervisor agree on objectives of performance.
Brand/Repetutational Risk - ANS Results from public perception of the organization,
particularly is products and services. Management issues such as treatment of employees may
influence reputation, but in this case the risk is primarily legal.
Operational Risk - ANS Comes from inadequate or failed internal processes, systems or staff.
Technical Risk - ANS Results from technology that does not perform as planned or becomes
obsolete. Pre-deployment testing and ongoing monitoring of the technological environment
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help mitigate such risks.
Page
@COPYRIGHT SIRJOEL 2025/2026
ANSWERS
Storming - ANS The time when a group experiences chaotic vying for leadership and
attempts at group processes. Team members may challenge goals and objectives of the team.
Personal agendas may also start to emerge at this time.
Forming - ANS When the group comes together initially and gets to know one another. The
team organizes itself. For Example, the team sets operating procedures, clearly defines its
charter and sets timelines.
Norming - ANS The team establishes ways of prioritizing issues, clearly defining goals and
objectives and arriving at an agreement on how the task should be carried out. The group
coming to an agreement on how to operate.
Performing - ANS When the group does the work to accomplish goals.
adjouring stage - ANS Usually includes a wrap-up period as well as a review to determine
whether or not they have accomplished what they were chartered to do.
Punitive Damages - ANS Awarded as punishment and or deterrent when a defendant is
found to have done wrong intentionally or deliberately. Punitive damages are rarely awarded in
breach of contract disputes.
1
Page
@COPYRIGHT SIRJOEL 2025/2026
, Actual Damages - ANS Compensate for the amount of proven harm, loss, or injury suffered
by the plaintiff.
Liquidated Damages - ANS Those agreed upon during the formation of a contract, to be paid
by the breaching party in the event of a defined breach of contract.
Specific Performance - ANS A special remedy where the court orders the seller to perform
the contract as agreed rather than awarding monetary damages.
Theory Y - ANS Starts from the premise that people are self motivated and intrinsically seek
to do a good job.
Theory X - ANS Starts from the premise that people are naturally lazy and need to be driven
by external forces to do good work. These managers operate from a control and punishment
perspective and use fear to motivate people.
Span of Control - ANS The number of people a manager supervises
Management by Objectives (MBO) - ANS Is a form of participatory management in which
employee and supervisor agree on objectives of performance.
Brand/Repetutational Risk - ANS Results from public perception of the organization,
particularly is products and services. Management issues such as treatment of employees may
influence reputation, but in this case the risk is primarily legal.
Operational Risk - ANS Comes from inadequate or failed internal processes, systems or staff.
Technical Risk - ANS Results from technology that does not perform as planned or becomes
obsolete. Pre-deployment testing and ongoing monitoring of the technological environment
2
help mitigate such risks.
Page
@COPYRIGHT SIRJOEL 2025/2026
