PEREGRINE EXAM 2026–2027
120 QUESTIONS AND CORRECT ANSWERS
ALREADY GRADED A+ | 100% VERIFIED
Academic Assessment & Higher Education Program Evaluation
Peregrine Global Services
Key Domains: Business Administration | Accounting | Finance | Marketing | Management |
Economics | Quantitative Reasoning | Business Ethics
The official, verified question count for the Peregrine Exam administered by the testing body is exactly
120 multiple-choice questions.
,ANSWER FORMAT: Correct answers are displayed in bold cyan text, accompanied by
rationales explaining the reasoning. Answer distribution (A, B, C, D) is intentionally
randomized.
DOMAIN I: BUSINESS ADMINISTRATION (Questions 1–15)
Question 1. Which of the following best describes the primary function of strategic
planning in a business organization?
A. Processing payroll and managing employee benefits
B. Establishing long-term goals and determining the best course of action to
achieve competitive advantage
C. Handling customer complaints and service recovery
D. Day-to-day operational scheduling of employee shifts
✓ Correct Answer: B
Rationale: Strategic planning involves setting long-term organizational goals, analyzing the
competitive environment, and determining the actions and resource allocations necessary to
achieve sustainable competitive advantage.
Question 2. A SWOT analysis is a strategic planning tool that evaluates an organization's:
A. Standards, Warranties, Obligations, and Targets
B. Strategy, Workflow, Operations, and Tactics
C. Sales, Workforce, Output, and Technology
D. Strengths, Weaknesses, Opportunities, and Threats
✓ Correct Answer: D
Rationale: SWOT analysis assesses internal factors (Strengths and Weaknesses) and external
factors (Opportunities and Threats) to inform strategic decision-making and resource allocation.
Question 3. Which organizational structure groups employees based on the products or
services they deliver?
A. Divisional structure
B. Flat structure
C. Matrix structure
D. Functional structure
✓ Correct Answer: A
, Rationale: A divisional structure organizes a company into semi-autonomous units based on
products, services, geographic regions, or customer segments, allowing each division to focus on its
specific market.
Question 4. The concept of 'span of control' in organizational design refers to:
A. The number of subordinates a manager can effectively supervise
B. The geographic reach of the company's operations
C. The total number of employees in the organization
D. The number of products in the company's portfolio
✓ Correct Answer: A
Rationale: Span of control refers to the number of direct reports a manager can effectively
supervise. A wider span results in a flatter organization; a narrower span results in a taller, more
hierarchical structure.
Question 5. Corporate Social Responsibility (CSR) is best defined as:
A. A business model that integrates social and environmental concerns into
operations and stakeholder interactions
B. Compliance with minimum legal requirements only
C. Charitable donations made once per year
D. Maximizing shareholder profits at all costs
✓ Correct Answer: A
Rationale: CSR is a management concept whereby companies integrate social, environmental, and
ethical concerns into their business operations and interactions with stakeholders, going beyond
mere legal compliance.
Question 6. Which of the following is an example of a 'differentiation' competitive strategy
as described by Michael Porter?
A. Creating a unique product or service that is perceived as industry-wide
distinctive
B. Copying competitors' products at lower cost
C. Focusing on a narrow market niche
D. Offering the lowest prices in the market
✓ Correct Answer: A
Rationale: Porter's differentiation strategy involves creating a product or service perceived as
unique across the industry, allowing the firm to command a premium price and build brand loyalty
based on distinctive features.
Question 7. The Balanced Scorecard framework evaluates organizational performance
across which four perspectives?
, A. Marketing, Sales, Operations, and HR
B. Financial, Customer, Internal Processes, and Learning & Growth
C. Revenue, Cost, Profit, and Loss
D. Product, Price, Place, and Promotion
✓ Correct Answer: B
Rationale: The Balanced Scorecard (Kaplan & Norton) measures performance across Financial
(shareholder value), Customer (satisfaction and retention), Internal Business Processes
(operational efficiency), and Learning & Growth (innovation and improvement).
Question 8. In the context of business administration, 'benchmarking' refers to:
A. Comparing an organization's processes and performance metrics to industry
best practices or leading competitors
B. Outsourcing all business functions
C. Setting arbitrary performance targets
D. Reducing employee wages to match competitors
✓ Correct Answer: A
Rationale: Benchmarking is the systematic process of comparing an organization's products,
services, and processes against those of industry leaders or best-in-class organizations to identify
areas for improvement.
Question 9. Which type of business entity provides owners with limited liability protection
while allowing profits to pass through to individual tax returns?
A. Sole proprietorship
B. S Corporation or Limited Liability Company (LLC)
C. C Corporation
D. General partnership
✓ Correct Answer: B
Rationale: Both S Corporations and LLCs provide limited liability protection to owners while
allowing pass-through taxation, where business profits and losses are reported on owners'
individual tax returns, avoiding double taxation.
Question 10. The PESTEL analysis framework examines which macro-environmental
factors?
A. Planning, Execution, Strategy, Tactics, Evaluation, and Learning
B. Price, Efficiency, Service, Time, Ethics, and Loyalty
C. Political, Economic, Social, Technological, Environmental, and Legal
D. Product, Employee, Sales, Technology, Equipment, and Logistics
120 QUESTIONS AND CORRECT ANSWERS
ALREADY GRADED A+ | 100% VERIFIED
Academic Assessment & Higher Education Program Evaluation
Peregrine Global Services
Key Domains: Business Administration | Accounting | Finance | Marketing | Management |
Economics | Quantitative Reasoning | Business Ethics
The official, verified question count for the Peregrine Exam administered by the testing body is exactly
120 multiple-choice questions.
,ANSWER FORMAT: Correct answers are displayed in bold cyan text, accompanied by
rationales explaining the reasoning. Answer distribution (A, B, C, D) is intentionally
randomized.
DOMAIN I: BUSINESS ADMINISTRATION (Questions 1–15)
Question 1. Which of the following best describes the primary function of strategic
planning in a business organization?
A. Processing payroll and managing employee benefits
B. Establishing long-term goals and determining the best course of action to
achieve competitive advantage
C. Handling customer complaints and service recovery
D. Day-to-day operational scheduling of employee shifts
✓ Correct Answer: B
Rationale: Strategic planning involves setting long-term organizational goals, analyzing the
competitive environment, and determining the actions and resource allocations necessary to
achieve sustainable competitive advantage.
Question 2. A SWOT analysis is a strategic planning tool that evaluates an organization's:
A. Standards, Warranties, Obligations, and Targets
B. Strategy, Workflow, Operations, and Tactics
C. Sales, Workforce, Output, and Technology
D. Strengths, Weaknesses, Opportunities, and Threats
✓ Correct Answer: D
Rationale: SWOT analysis assesses internal factors (Strengths and Weaknesses) and external
factors (Opportunities and Threats) to inform strategic decision-making and resource allocation.
Question 3. Which organizational structure groups employees based on the products or
services they deliver?
A. Divisional structure
B. Flat structure
C. Matrix structure
D. Functional structure
✓ Correct Answer: A
, Rationale: A divisional structure organizes a company into semi-autonomous units based on
products, services, geographic regions, or customer segments, allowing each division to focus on its
specific market.
Question 4. The concept of 'span of control' in organizational design refers to:
A. The number of subordinates a manager can effectively supervise
B. The geographic reach of the company's operations
C. The total number of employees in the organization
D. The number of products in the company's portfolio
✓ Correct Answer: A
Rationale: Span of control refers to the number of direct reports a manager can effectively
supervise. A wider span results in a flatter organization; a narrower span results in a taller, more
hierarchical structure.
Question 5. Corporate Social Responsibility (CSR) is best defined as:
A. A business model that integrates social and environmental concerns into
operations and stakeholder interactions
B. Compliance with minimum legal requirements only
C. Charitable donations made once per year
D. Maximizing shareholder profits at all costs
✓ Correct Answer: A
Rationale: CSR is a management concept whereby companies integrate social, environmental, and
ethical concerns into their business operations and interactions with stakeholders, going beyond
mere legal compliance.
Question 6. Which of the following is an example of a 'differentiation' competitive strategy
as described by Michael Porter?
A. Creating a unique product or service that is perceived as industry-wide
distinctive
B. Copying competitors' products at lower cost
C. Focusing on a narrow market niche
D. Offering the lowest prices in the market
✓ Correct Answer: A
Rationale: Porter's differentiation strategy involves creating a product or service perceived as
unique across the industry, allowing the firm to command a premium price and build brand loyalty
based on distinctive features.
Question 7. The Balanced Scorecard framework evaluates organizational performance
across which four perspectives?
, A. Marketing, Sales, Operations, and HR
B. Financial, Customer, Internal Processes, and Learning & Growth
C. Revenue, Cost, Profit, and Loss
D. Product, Price, Place, and Promotion
✓ Correct Answer: B
Rationale: The Balanced Scorecard (Kaplan & Norton) measures performance across Financial
(shareholder value), Customer (satisfaction and retention), Internal Business Processes
(operational efficiency), and Learning & Growth (innovation and improvement).
Question 8. In the context of business administration, 'benchmarking' refers to:
A. Comparing an organization's processes and performance metrics to industry
best practices or leading competitors
B. Outsourcing all business functions
C. Setting arbitrary performance targets
D. Reducing employee wages to match competitors
✓ Correct Answer: A
Rationale: Benchmarking is the systematic process of comparing an organization's products,
services, and processes against those of industry leaders or best-in-class organizations to identify
areas for improvement.
Question 9. Which type of business entity provides owners with limited liability protection
while allowing profits to pass through to individual tax returns?
A. Sole proprietorship
B. S Corporation or Limited Liability Company (LLC)
C. C Corporation
D. General partnership
✓ Correct Answer: B
Rationale: Both S Corporations and LLCs provide limited liability protection to owners while
allowing pass-through taxation, where business profits and losses are reported on owners'
individual tax returns, avoiding double taxation.
Question 10. The PESTEL analysis framework examines which macro-environmental
factors?
A. Planning, Execution, Strategy, Tactics, Evaluation, and Learning
B. Price, Efficiency, Service, Time, Ethics, and Loyalty
C. Political, Economic, Social, Technological, Environmental, and Legal
D. Product, Employee, Sales, Technology, Equipment, and Logistics
