MGT CLEP TEST Exam 2026 Questions
and Answers
Which of the following words is NOT a step in the management process?
(A) Planning
(B) Leading
(C) Producing
(D) Controlling
(E) Organizing - Correct answer-c
A homebuilder dominates a market by offering attractive options, higher quality,
and value-added services. Which of the following competitive strategies has the
homebuilder adopted?
(A) Cost leadership
(B) Differentiation
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,(C) Price leadership
(D) Generic
(E) Design focus - Correct answer-b
Which of the following is a correct statement about controlling as a management
function?
(A) It can be performed independently of
planning.
(B) It is performed only by the controller of an organization.
(C) It is more prevalent in business than
in government.
(D) It assumes a certain approach to
motivating employees.
(E) It must be closely related to planning in order to work efficiently. - Correct
answer-e
Decentralization tends to be encouraged by which of the following business
trends?
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,I. Product diversification
II. Telecommuting
III. Geographical expansion of operations
(A) I only
(B) II only
(C) III only
(D) I and III only
(E) I, II, and III - Correct answer-e
Which of the following can be best determined by consulting an organization
chart?
(A) The size of the company
(B) The distribution of company resources
(C) The nature of work performed
(D) The connections of positions
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, (E) The quality of management of the firm - Correct answer-d
The number of subordinates who directly report to a superior refers to the
manager's
(A) span of control
(B) organizational role
(C) organizational structure
(D) chain of command
(E) general staff - Correct answer-a
Which of the following best illustrates informal organization?
(A) Line authority, such as that of the field
marshal and battalion commander in
the military
(B) Staff authority, such as that of personnel or cost control in manufacturing
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and Answers
Which of the following words is NOT a step in the management process?
(A) Planning
(B) Leading
(C) Producing
(D) Controlling
(E) Organizing - Correct answer-c
A homebuilder dominates a market by offering attractive options, higher quality,
and value-added services. Which of the following competitive strategies has the
homebuilder adopted?
(A) Cost leadership
(B) Differentiation
©COPYRIGHT 2025, ALL RIGHTS RESERVED 1
,(C) Price leadership
(D) Generic
(E) Design focus - Correct answer-b
Which of the following is a correct statement about controlling as a management
function?
(A) It can be performed independently of
planning.
(B) It is performed only by the controller of an organization.
(C) It is more prevalent in business than
in government.
(D) It assumes a certain approach to
motivating employees.
(E) It must be closely related to planning in order to work efficiently. - Correct
answer-e
Decentralization tends to be encouraged by which of the following business
trends?
©COPYRIGHT 2025, ALL RIGHTS RESERVED 2
,I. Product diversification
II. Telecommuting
III. Geographical expansion of operations
(A) I only
(B) II only
(C) III only
(D) I and III only
(E) I, II, and III - Correct answer-e
Which of the following can be best determined by consulting an organization
chart?
(A) The size of the company
(B) The distribution of company resources
(C) The nature of work performed
(D) The connections of positions
©COPYRIGHT 2025, ALL RIGHTS RESERVED 3
, (E) The quality of management of the firm - Correct answer-d
The number of subordinates who directly report to a superior refers to the
manager's
(A) span of control
(B) organizational role
(C) organizational structure
(D) chain of command
(E) general staff - Correct answer-a
Which of the following best illustrates informal organization?
(A) Line authority, such as that of the field
marshal and battalion commander in
the military
(B) Staff authority, such as that of personnel or cost control in manufacturing
©COPYRIGHT 2025, ALL RIGHTS RESERVED 4
