1 | Page
CLEP Principles of Management Questions
and Answers
Which of the following words is NOT logically related to the
others?
Ans: Producing
Program evaluation and review technique (PERT) is a system for
Ans: scheduling and finding the critical path for production
Which of the following is a correct statement about controlling as
a management function?
Ans: It must be closely related to planning in order to work efficiently
Decentralization tends to be encouraged by which of the following
business trends?
Ans: Product diversification, telecommuting, Geographical expansion of
operations
Which of the following can be best determined by consulting an
organization chart?
Ans: The relationship of positions and people
The number of subordinates who directly report to a superior
refers to the manager's
Ans: span of control
Which of the following best illustrates informal organization?
Ans: Groupings based on such factors as technical ability, seniority, and
personal influence
© 2025 All rights reserved
, 2 | Page
The choice of organizational structure to be used in a business
should be
Ans: based on the objectives of each individual business
The concept of hierarchy of needs attempts to explain which of
the following?
Ans: Personal motivation
Fredrick Taylor is considered a pioneer in the school of
management referred to as the
Ans: scientific management school
Preparation of which of the following is the most logical first step
in developing an annual operating plan
Ans: A sales forecast by product
A large span of control throughout an organization invariably
results in
Ans: a flat (horizontal) organizational structure
Which of the following is a conflict-resolution practice that seeks
to satisfy both parties to a conflict?
Ans: Collaboration
Which of the following goals is most likely to produce the desired
results?
Ans: Increase sales volume by 10% while maintaining current rate of
expenditures
The practice in large companies of establishing autonomous
divisions whose heads are entirely responsible for what happens in
the decision is referred to as
Ans: decentralization of authority
© 2025 All rights reserved
, 3 | Page
Which of the following control techniques is most likely to
emphasize the importance of time?
Ans: PERT (program evaluation and review technique)
In profit-decentralized companies, which of the following
responsibilities of division managers should be subject to the
LEAST restriction by top managers
Ans: Establishment of procedures in functional areas
Isabel Myers, Katherine Briggs, and Carl Jung developed different
models to help individuals understand
Ans: different approaches to decision making
In a labor negotiation, if a third party has the power to determine
a solution to a labor dispute between two parties, the negotiation
is known as
Ans: an arbitration
A type of control device for assessing the progress of planned
activities and the expenditure of resources allocated to their
accomplishments is referred to as
Ans: a budget
Which of the following do managerial/leadership grids, team
building, and sensitivity training have in common?
Ans: They are tools for organizational development
According to Maslow, the need to feel genuinely respected by
peers, both in and out of the work environment, is included in
which of the following need classifications?
Ans: Esteem
Which of the following management activities is most typically
described as a controlling function?
© 2025 All rights reserved
CLEP Principles of Management Questions
and Answers
Which of the following words is NOT logically related to the
others?
Ans: Producing
Program evaluation and review technique (PERT) is a system for
Ans: scheduling and finding the critical path for production
Which of the following is a correct statement about controlling as
a management function?
Ans: It must be closely related to planning in order to work efficiently
Decentralization tends to be encouraged by which of the following
business trends?
Ans: Product diversification, telecommuting, Geographical expansion of
operations
Which of the following can be best determined by consulting an
organization chart?
Ans: The relationship of positions and people
The number of subordinates who directly report to a superior
refers to the manager's
Ans: span of control
Which of the following best illustrates informal organization?
Ans: Groupings based on such factors as technical ability, seniority, and
personal influence
© 2025 All rights reserved
, 2 | Page
The choice of organizational structure to be used in a business
should be
Ans: based on the objectives of each individual business
The concept of hierarchy of needs attempts to explain which of
the following?
Ans: Personal motivation
Fredrick Taylor is considered a pioneer in the school of
management referred to as the
Ans: scientific management school
Preparation of which of the following is the most logical first step
in developing an annual operating plan
Ans: A sales forecast by product
A large span of control throughout an organization invariably
results in
Ans: a flat (horizontal) organizational structure
Which of the following is a conflict-resolution practice that seeks
to satisfy both parties to a conflict?
Ans: Collaboration
Which of the following goals is most likely to produce the desired
results?
Ans: Increase sales volume by 10% while maintaining current rate of
expenditures
The practice in large companies of establishing autonomous
divisions whose heads are entirely responsible for what happens in
the decision is referred to as
Ans: decentralization of authority
© 2025 All rights reserved
, 3 | Page
Which of the following control techniques is most likely to
emphasize the importance of time?
Ans: PERT (program evaluation and review technique)
In profit-decentralized companies, which of the following
responsibilities of division managers should be subject to the
LEAST restriction by top managers
Ans: Establishment of procedures in functional areas
Isabel Myers, Katherine Briggs, and Carl Jung developed different
models to help individuals understand
Ans: different approaches to decision making
In a labor negotiation, if a third party has the power to determine
a solution to a labor dispute between two parties, the negotiation
is known as
Ans: an arbitration
A type of control device for assessing the progress of planned
activities and the expenditure of resources allocated to their
accomplishments is referred to as
Ans: a budget
Which of the following do managerial/leadership grids, team
building, and sensitivity training have in common?
Ans: They are tools for organizational development
According to Maslow, the need to feel genuinely respected by
peers, both in and out of the work environment, is included in
which of the following need classifications?
Ans: Esteem
Which of the following management activities is most typically
described as a controlling function?
© 2025 All rights reserved
