October 25, 2017

CLEP Principles of Management Exam Practice Questions


Each of the questions or incomplete statements below is followed by five possible answers or completions. Select the best choice in each case.

1. Which of the following is the correct order (from more influential to less influential) of Abraham Maslow’s five categories of need that influence human motivation?

a. Physiological, social, safety, esteem, self-actualization
b. Physiological, safety, social, esteem, self-actualization
c. Physiological, esteem, social, safety, self-actualization
d. Physiological, safety, esteem, self-actualization, social
e. Physiological, social, esteem, safety, self-actualization

2. What does the “S” stand for in the acronym SMART [goal]?

a. Steadfast
b. Substantial
c. Specific
d. Strong
e. Substantive

3. Which of the following is NOT considered a function of management?

a. Planning
b. Organizing
c. Leading
d. Controlling
e. Achieving

4. Which of the following is a benefit of the Systems Theory approach to management?

a. Understanding that long-term success requires looking at the environment for developments
b. Understanding that long-term success requires focusing exclusively on the here-and-now
c. Understanding that long-term success requires ignoring the environment and focusing exclusively on the internal workings of a company
d. Understanding that long-term success is out of the control of management
e. Understanding that long-term success comes from what was accomplished in the past

5. Which of the following is a problem with the Utilitarian ethical framework?

a. It focuses only on the means rather than the ends.
b. It violates people’s freedom of speech.
c. It is arbitrary.
d. It assumes profit optimization leads to the greatest social benefit.
e. It does not provide a means of ranking choices.

6. Which of the following is the phenomenon described by the term satisficing?

a. People search for a minimally acceptable, not optimal, solution.
b. People are inconsistent.
c. People have limited time and mental capacities to make decisions.
d. Decision contexts do not have an objective set of priorities.
e. Some people are willing to take bigger chances than others.

7. Which of the following is NOT a competitive force that can impact a company’s strategy and success?

a. Threat of substitute products
b. Threat of employee strikes
c. Bargaining power of buyers
d. Bargaining power of suppliers
e. Rivalry among competitors

8. Which of the following is the BEST definition of corporate culture?

a. Official statements and procedures
b. Values and beliefs shared by members about how work should be done and what is important
c. Managers “walking the talk”
d. Historical ways of doing things
e. Symbols, language, narrative, and practices

9. What does the acronym SWOT stand for?

a. Strengths, weaknesses, options, tensions
b. Strengths, weaknesses, options, threats
c. Strengths, weaknesses, opportunities, tensions
d. Strengths, weaknesses, opportunities, threats
e. Strengths, weaknesses, opportunities, tendencies

10. Which of the following is the principle that describes the assumption that systems wear down unless they import energy to reverse this tendency?

a. Negative entropy
b. Positive entropy
c. Positive feedback
d. Negative feedback

CLEP Principles of Management Exam Answer Key