WGU C483 Principles of Management Exam 2 Questions and Answers
and Explanations | Latest
1. Which of the following describes the first step in the rational decision-making
process?
A. Identifying and diagnosing the problem
B. Evaluating alternatives
C. Generating alternative solutions
D. Selecting the best solution
Answer: A
Explanation: The rational decision-making process begins with recognizing that a problem
exists and identifying its specific characteristics.
2. In the SMART acronym for goal setting, what does the ‘M’ stand for?
A. Measurable
B. Manageable
C. Motivational
D. Meaningful
Answer: A
Explanation: SMART stands for Specific, Measurable, Achievable, Relevant, and Time-
bound.
,3. What is ‘satisficing’ in the context of decision-making?
A. Searching for the optimal solution until it is found
B. Using complex algorithms to determine outcomes
C. Choosing the first option that meets the minimum criteria
D. Ensuring all stakeholders are happy with the choice
Answer: C
Explanation: Satisficing is a decision-making strategy that aims for a satisfactory or
adequate result rather than the optimal one.
4. Which level of planning usually involves a time horizon of one to five years?
A. Strategic planning
B. Tactical planning
C. Operational planning
D. Contingency planning
Answer: A
Explanation: Strategic planning is long-term and focuses on the organization’s overall
direction and goals over several years.
5. Which component of a SWOT analysis focuses on external factors that could
negatively impact the organization?
A. Strengths
B. Weaknesses
,C. Threats
D. Opportunities
Answer: C
Explanation: Threats are external elements in the environment that could cause trouble
for the business.
6. What is the primary characteristic of a ‘matrix’ organizational structure?
A. Clear vertical chain of command
B. Elimination of middle management
C. Strict division by geographic region
D. Employees report to two different managers
Answer: D
Explanation: A matrix structure overlays a divisional structure with a functional structure,
creating dual reporting relationships.
7. According to Porter’s Five Forces, which factor increases the bargaining
power of suppliers?
A. Many alternative suppliers exist
B. The supplier’s product is a standard commodity
C. The industry is not a key customer for the supplier
D. Switching costs to other suppliers are low
Answer: C
, Explanation: Suppliers have more power if the industry they serve is not a significant
portion of their sales or if their product is unique.
8. Which term refers to the number of subordinates who report directly to a
manager?
A. Chain of command
B. Span of control
C. Unity of command
D. Hierarchy of authority
Answer: B
Explanation: Span of control (or span of management) refers to the number of people
managed by one individual.
9. What is the first step in the Human Resource Management process?
A. Selection
B. Human resource planning
C. Recruitment
D. Training
Answer: B
Explanation: HR planning involves identifying current and future human resources needs
for an organization to achieve its goals.
and Explanations | Latest
1. Which of the following describes the first step in the rational decision-making
process?
A. Identifying and diagnosing the problem
B. Evaluating alternatives
C. Generating alternative solutions
D. Selecting the best solution
Answer: A
Explanation: The rational decision-making process begins with recognizing that a problem
exists and identifying its specific characteristics.
2. In the SMART acronym for goal setting, what does the ‘M’ stand for?
A. Measurable
B. Manageable
C. Motivational
D. Meaningful
Answer: A
Explanation: SMART stands for Specific, Measurable, Achievable, Relevant, and Time-
bound.
,3. What is ‘satisficing’ in the context of decision-making?
A. Searching for the optimal solution until it is found
B. Using complex algorithms to determine outcomes
C. Choosing the first option that meets the minimum criteria
D. Ensuring all stakeholders are happy with the choice
Answer: C
Explanation: Satisficing is a decision-making strategy that aims for a satisfactory or
adequate result rather than the optimal one.
4. Which level of planning usually involves a time horizon of one to five years?
A. Strategic planning
B. Tactical planning
C. Operational planning
D. Contingency planning
Answer: A
Explanation: Strategic planning is long-term and focuses on the organization’s overall
direction and goals over several years.
5. Which component of a SWOT analysis focuses on external factors that could
negatively impact the organization?
A. Strengths
B. Weaknesses
,C. Threats
D. Opportunities
Answer: C
Explanation: Threats are external elements in the environment that could cause trouble
for the business.
6. What is the primary characteristic of a ‘matrix’ organizational structure?
A. Clear vertical chain of command
B. Elimination of middle management
C. Strict division by geographic region
D. Employees report to two different managers
Answer: D
Explanation: A matrix structure overlays a divisional structure with a functional structure,
creating dual reporting relationships.
7. According to Porter’s Five Forces, which factor increases the bargaining
power of suppliers?
A. Many alternative suppliers exist
B. The supplier’s product is a standard commodity
C. The industry is not a key customer for the supplier
D. Switching costs to other suppliers are low
Answer: C
, Explanation: Suppliers have more power if the industry they serve is not a significant
portion of their sales or if their product is unique.
8. Which term refers to the number of subordinates who report directly to a
manager?
A. Chain of command
B. Span of control
C. Unity of command
D. Hierarchy of authority
Answer: B
Explanation: Span of control (or span of management) refers to the number of people
managed by one individual.
9. What is the first step in the Human Resource Management process?
A. Selection
B. Human resource planning
C. Recruitment
D. Training
Answer: B
Explanation: HR planning involves identifying current and future human resources needs
for an organization to achieve its goals.
