P R O F E S S I O N A L P R A C T I C E M AT E R I A L S
C483 Principles of
Management Test Prep
Exam Questions & Answers
Latest Style 2026/2027
Edition Western Governors
University
Verified Answers Exam Ready 105 QUESTIONS
DOCUMENT OVERVIEW
This document provides 105 verified questions with their correct answers, covering
fundamental principles of management. It is suitable for exam preparation, offering direct
review of key concepts and their associated answers. Students can utilize this resource to
efficiently study and reinforce their understanding of management principles.
TOPICS
• Quality Management • Strategic Management
• Organizational Behavior & Culture • Motivation & Rewards
• Change Management • Economic & Market Analysis
Page 1
, E XA M Q U EST I O N S
Q1 QUESTION 1 OF 105
A value chain is the sequence of activities that begins with raw materials.
What result does a value chain end with?
Choose 1 answer
Supply and demand
Operations and logistics
Outsourcing or insourcing
Delivery of products or services
ANSWER
Delivery of products or services
Q2 QUESTION 2 OF 105
What happens when an effective value chain is created?
Choose 1 answer
Profit margins are increased.
A mission statement is developed.
Customized products are standardized.
Total quality management is not required.
ANSWER
Profit margins are increased.
Q3 QUESTION 3 OF 105
According to Michael Porter's competitive environment model, how can suppliers influence
strategic planning?
Suppliers can reduce the threat from substitute products.
Suppliers can reduce the numbers of new entrants in the market.
Suppliers can reduce manufacturing time and increase product quality.
Suppliers can reduce technological, demographic, and legal threats in the environment.
Page 2
, ANSWER
Suppliers can reduce manufacturing time and increase product quality.
Q4 QUESTION 4 OF 105
The introduction of statistical tools to analyze the causes of product defects is associated
with which quality improvement approach?
Six Sigma
Flexible Process
Customer Process
Quality Customization
ANSWER
Six Sigma
Q5 QUESTION 5 OF 105
What is the principal idea of reengineering?
Choose 1 answer
To analyze system failures
To focus on creating two-way exchanges with customers
To revolutionize key organizational systems and processes
To improve total quality in all businesses for the benefit of producers and consumers
ANSWER
To revolutionize key organizational systems and processes
Q6 QUESTION 6 OF 105
How many defects per million are there at Six Sigma, assuming a product or process is
defect-free 99.99966% of the time?
Choose 1 answer
Less than 3.4
Less than 4.4
Less than 5.3
Less than 6.6
Page 3
, ANSWER
Less than 3.4
Q7 QUESTION 7 OF 105
What is the last step to Deming's 14 points of quality management?
To cease dependence on mass inspection
To break down barriers among departments
To evaluate options provided by management
To take action to accomplish the transformation
ANSWER
To take action to accomplish the transformation
Q8 QUESTION 8 OF 105
Process checklists and project audits are components of which management process?
Choose 1 answer
Quality Control
Quality Assurance
Quality Cooperative
Quality Collaboration
ANSWER
Quality Assurance
Q9 QUESTION 9 OF 105
What is the main objective of an internal quality audit?
To gauge the quality of human resources
To assess the quality of control process failures
To determine the quality of an organization's executive management
To measure effectiveness of an organization's quality management system
Page 4
C483 Principles of
Management Test Prep
Exam Questions & Answers
Latest Style 2026/2027
Edition Western Governors
University
Verified Answers Exam Ready 105 QUESTIONS
DOCUMENT OVERVIEW
This document provides 105 verified questions with their correct answers, covering
fundamental principles of management. It is suitable for exam preparation, offering direct
review of key concepts and their associated answers. Students can utilize this resource to
efficiently study and reinforce their understanding of management principles.
TOPICS
• Quality Management • Strategic Management
• Organizational Behavior & Culture • Motivation & Rewards
• Change Management • Economic & Market Analysis
Page 1
, E XA M Q U EST I O N S
Q1 QUESTION 1 OF 105
A value chain is the sequence of activities that begins with raw materials.
What result does a value chain end with?
Choose 1 answer
Supply and demand
Operations and logistics
Outsourcing or insourcing
Delivery of products or services
ANSWER
Delivery of products or services
Q2 QUESTION 2 OF 105
What happens when an effective value chain is created?
Choose 1 answer
Profit margins are increased.
A mission statement is developed.
Customized products are standardized.
Total quality management is not required.
ANSWER
Profit margins are increased.
Q3 QUESTION 3 OF 105
According to Michael Porter's competitive environment model, how can suppliers influence
strategic planning?
Suppliers can reduce the threat from substitute products.
Suppliers can reduce the numbers of new entrants in the market.
Suppliers can reduce manufacturing time and increase product quality.
Suppliers can reduce technological, demographic, and legal threats in the environment.
Page 2
, ANSWER
Suppliers can reduce manufacturing time and increase product quality.
Q4 QUESTION 4 OF 105
The introduction of statistical tools to analyze the causes of product defects is associated
with which quality improvement approach?
Six Sigma
Flexible Process
Customer Process
Quality Customization
ANSWER
Six Sigma
Q5 QUESTION 5 OF 105
What is the principal idea of reengineering?
Choose 1 answer
To analyze system failures
To focus on creating two-way exchanges with customers
To revolutionize key organizational systems and processes
To improve total quality in all businesses for the benefit of producers and consumers
ANSWER
To revolutionize key organizational systems and processes
Q6 QUESTION 6 OF 105
How many defects per million are there at Six Sigma, assuming a product or process is
defect-free 99.99966% of the time?
Choose 1 answer
Less than 3.4
Less than 4.4
Less than 5.3
Less than 6.6
Page 3
, ANSWER
Less than 3.4
Q7 QUESTION 7 OF 105
What is the last step to Deming's 14 points of quality management?
To cease dependence on mass inspection
To break down barriers among departments
To evaluate options provided by management
To take action to accomplish the transformation
ANSWER
To take action to accomplish the transformation
Q8 QUESTION 8 OF 105
Process checklists and project audits are components of which management process?
Choose 1 answer
Quality Control
Quality Assurance
Quality Cooperative
Quality Collaboration
ANSWER
Quality Assurance
Q9 QUESTION 9 OF 105
What is the main objective of an internal quality audit?
To gauge the quality of human resources
To assess the quality of control process failures
To determine the quality of an organization's executive management
To measure effectiveness of an organization's quality management system
Page 4
