WGU C483 2026-09-19
TEST PREP – WGU – PRINCIPALS OF
MANAGEMENT C483 2026 //Multiple-choice
Questions and Answers
1. A value chain is the sequence of activities that begins with raw materials. What result does a
value chain end with?
A. Supply and demand
B. Operations and logistics
C. Outsourcing or insourcing
D. Delivery of products or services
D. Delivery of products or services
2. What happens when an effective value chain is created?
A. Profit margins are increased.
B. A mission statement is developed.
C. Customized products are standardized.
D. Total quality management is not required.
A. Profit margins are increased.
3. Industry and market analysis, competitor analysis, and social analysis are examples of
which step in the strategic planning process?
A. Analysis of mission, vision, and goals
B. Analysis of management implementation
C. Analysis of external opportunities and threats
D. Analysis of internal strengths and weaknesses
C. Analysis of external opportunities and threats
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,WGU C483 2026-09-19
4. Skilled management, positive cash flow, and well-known brands are examples of which
component of the SWOT analysis?
A. Threats
B. Strengths
C. Weaknesses
D. Opportunities
B. Strengths
5. What denotes skills or expertise in an activity that constitutes the roots of competitiveness in
an organization?
A. Strategic values
B. Core competencies
C. Products and services
D. Opportunities and threats
B. Core competencies
6. According to Michael Porter's competitive environment model, how can suppliers influence
strategic planning?
A. Suppliers can reduce the threat from substitute products.
B. Suppliers can reduce the numbers of new entrants in the market.
C. Suppliers can reduce manufacturing time and increase product quality.
D. Suppliers can reduce technological, demographic, and legal threats in the environment.
C. Suppliers can reduce manufacturing time and increase product quality.
7. A company offers unique products in its industry to create a competitive advantage. Which
type of strategy is the company using?
A. Valorization
B. Differentiation
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,WGU C483 2026-09-19
C. Customization
D. Standardization
B. Differentiation
8. Happy Inc. is a leading provider of family entertainment and BCD is a broadcasting
company with news, cable, and entertainment networks. Happy Inc. recently acquired BCD
in hopes of boosting its primary business of family entertainment. Which type of corporate
strategy is represented by Happy Inc.'s purchase of their distribution network?
Vertical integration
Strategic alliances
Networking
Horizontal benchmarking
Vertical integration
9. A local business has provided services to its customers for 40 years. The business's mission
is "To give our customers the best service in town." The owner of the business has had a
long-standing dream to franchise the business and become the best provider of its service in
the United States.
What describes the owner's dream?
Strategic vision
Strategic mission
Strategic planning
Strategic management
Strategic vision
10. What is the first step of organizational strategic planning?
Developing operational goals
Developing internal strengths
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, WGU C483 2026-09-19
Developing a strategic mission
Developing external opportunities
Developing a strategic mission
11. 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
Six Sigma
12. What is the principal idea of reengineering?
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
To revolutionize key organizational systems and processes
13. How many defects per million are there at Six Sigma, assuming a product or process is
defect-free 99.99966% of the time?
Less than 3.4
Less than 4.4
Less than 5.3
Less than 6.6
Less than 3.4
14. 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
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TEST PREP – WGU – PRINCIPALS OF
MANAGEMENT C483 2026 //Multiple-choice
Questions and Answers
1. A value chain is the sequence of activities that begins with raw materials. What result does a
value chain end with?
A. Supply and demand
B. Operations and logistics
C. Outsourcing or insourcing
D. Delivery of products or services
D. Delivery of products or services
2. What happens when an effective value chain is created?
A. Profit margins are increased.
B. A mission statement is developed.
C. Customized products are standardized.
D. Total quality management is not required.
A. Profit margins are increased.
3. Industry and market analysis, competitor analysis, and social analysis are examples of
which step in the strategic planning process?
A. Analysis of mission, vision, and goals
B. Analysis of management implementation
C. Analysis of external opportunities and threats
D. Analysis of internal strengths and weaknesses
C. Analysis of external opportunities and threats
1|Page
,WGU C483 2026-09-19
4. Skilled management, positive cash flow, and well-known brands are examples of which
component of the SWOT analysis?
A. Threats
B. Strengths
C. Weaknesses
D. Opportunities
B. Strengths
5. What denotes skills or expertise in an activity that constitutes the roots of competitiveness in
an organization?
A. Strategic values
B. Core competencies
C. Products and services
D. Opportunities and threats
B. Core competencies
6. According to Michael Porter's competitive environment model, how can suppliers influence
strategic planning?
A. Suppliers can reduce the threat from substitute products.
B. Suppliers can reduce the numbers of new entrants in the market.
C. Suppliers can reduce manufacturing time and increase product quality.
D. Suppliers can reduce technological, demographic, and legal threats in the environment.
C. Suppliers can reduce manufacturing time and increase product quality.
7. A company offers unique products in its industry to create a competitive advantage. Which
type of strategy is the company using?
A. Valorization
B. Differentiation
2|Page
,WGU C483 2026-09-19
C. Customization
D. Standardization
B. Differentiation
8. Happy Inc. is a leading provider of family entertainment and BCD is a broadcasting
company with news, cable, and entertainment networks. Happy Inc. recently acquired BCD
in hopes of boosting its primary business of family entertainment. Which type of corporate
strategy is represented by Happy Inc.'s purchase of their distribution network?
Vertical integration
Strategic alliances
Networking
Horizontal benchmarking
Vertical integration
9. A local business has provided services to its customers for 40 years. The business's mission
is "To give our customers the best service in town." The owner of the business has had a
long-standing dream to franchise the business and become the best provider of its service in
the United States.
What describes the owner's dream?
Strategic vision
Strategic mission
Strategic planning
Strategic management
Strategic vision
10. What is the first step of organizational strategic planning?
Developing operational goals
Developing internal strengths
3|Page
, WGU C483 2026-09-19
Developing a strategic mission
Developing external opportunities
Developing a strategic mission
11. 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
Six Sigma
12. What is the principal idea of reengineering?
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
To revolutionize key organizational systems and processes
13. How many defects per million are there at Six Sigma, assuming a product or process is
defect-free 99.99966% of the time?
Less than 3.4
Less than 4.4
Less than 5.3
Less than 6.6
Less than 3.4
14. 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
4|Page
