CLEP Management Modules 1, 2, 3

Preparation of which of the following is the most logical first step in developing an annual operating plan? (A) A sales forecast by product (B) A production schedule by product (C) A flow-of-funds statement by product (D) A plant and equipment requirement forecast (E) A pro forma income statement and balance sheet

(A) A sales forecast by product

What forecasting technique involves soliciting best-guesses and opinions from a broad variety of experts and then summing or averaging their responses? (A) Delphi technique (B) Group summation analysis (C) Oswald-Baker scenario assessment (D) Strategic averaging (E) Team thinking

(A) Delphi technique

Which of the following is most commonly used to measure the total productivity of a company? (A) The ratio between total outputs and total inputs (B) The ratio between fixed costs and variable costs (C) The ratio between contribution margin and total revenue (D) The ratio between the break-even point and total output (E) The ratio between total inputs and total capital

(A) The ratio between total outputs and total inputs

The process of discovering relationships and patterns in large amounts of data is called data (A) mining (B) clustering (C) encryption (D) networking (E) warehousing

(A) mining

A home builder 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 (C) Price leadership (D) Generic (E) Organizing

(B) Differentiation

The manager most famous for developing the earliest model of management functions, which led to the modern POLC model we use today is: (A) Robert Decker (B) Henri Fayol (C) Abraham Maslow (D) Henry Ford (E) Peter Drucker

(B) Henri Fayol

The management process that involves motivating people to work hard to reach organizational goals is: (A) Planning (B) Leading (C) Controlling (D) Developing (E) Organizing

(B) Leading

What piece of US law requires a corporation to publish a corporate code of ethics? (A) Knowles-Taylor Ethics Act of 1986 (B) Sarbanes-Oxley Act (C) Public Law 2782 on Corporate Ethics (D) Executive Order 27-82, "The Ethics Order" (E) The Foreign Corrupt Practices Act

(B) Sarbanes-Oxley Act

Which of the following describes the critical path in a Program Evaluation and Review Technique (PERT) process? (A) Parts that require the most costly materials (B) The most time-consuming sequence of events and activities (C) The shortest route to the project completion (D) The central guideline for quality control (E) The property insurance

(B) The most time-consuming sequence of events and activities

Which of the following management activities is most typically described as a controlling function? (A) Goal setting (B) Purchasing (C) Budgetary review (D) Staffing (E) Recruiting

(C) Budgetary review

In the Generic Competitive Model, which of these would describe a competitor who concentrates on a small market niche and attempts to offer products to that niche at the lowest price? (A) Generic Cost Leader (B) Generic Differentiated Competitor (C) Focused Cost Leader (D) Focused Differentiated Competitor (E) Niche Price Competitor

(C) Focused Cost Leader

Which generic competitive strategy targets a very specific niche market and offers customers a unique set of product benefits? (A) Cost leadership (B) Focused cost leadership (C) Focused differentiation (D) Focused market strategy (E) Product development

(C) Focused differentiation

Which of the following best describes managerial ethics? (A) It is the social obligation that the individual manager has to fulfill. (B) It is a statement of the social responsibility of the organization. (C) It is the standard of conduct that guides a person's decisions and behavior. (D) It is the mission statement of the organization. (E) It is a behavior that conforms to legal principles of justice.

(C) It is the standard of conduct that guides a person's decisions and behavior.

The statement that describes an organization's reason for being is best described as: (A) Vision statement (B) Statement of purpose (C) Mission Statement (D) Operating goal (E) Strategic plan

(C) Mission Statement

Which of the following words is NOT a step in the management process? (A) Planning (B) Leading (C) Producing (D) Controlling (E) Organizing

(C) Producing

What curve shows the progress of sales of a new product from initial launch to final decline? (A) BCG Matrix (B) Product Adoption Curve (C) Product Life Cycle Curve (D) Product sales forecast (E) The Leaman Curve

(C) Product Life Cycle Curve

Which of these is a strategic planning tool that allows the assessment of an organization's strengths and weaknesses in responding to possible external events? (A) Strength assessment (B) Event Analysis Technique (EAT) (C) SWOT Analysis (D) Capacity Review (E) Strategic Assessment

(C) SWOT Analysis

Which of the following models classifies products as stars, question marks, cash cows, or dogs? (A) Porter's five forces model (B) Theory X (C) The Boston Consulting Group Matrix (D) Theory Y (E) Kanban

(C) The Boston Consulting Group Matrix

Very tightly-coupled control requires close constant feedback and frequent management corrections. What perception can this produce among employees? (A) confidence in management (B) a sense of belonging and trust (C) a sense of distrust and micromanagement (D) that management is keeping secrets from employees (E) that management is unaware of what is going on in the organization

(C) a sense of distrust and micromanagement

The ratio of output to input gives a measure of (A) proficiency (B) effectiveness (C) productivity (D) operations management (E) quality control

(C) productivity

Frederick Taylor is considered a pioneer in the school of management referred to as the (A) management process school (B) empirical school (C) scientific management school (D) behaviorist school (E) social system school

(C) scientific management school

The break even point is defined as the level of production at which (A) fixed costs are covered by revenue (B) variable costs are covered by revenue (C) total revenue is sufficient to cover total costs (D) marginal revenue equals marginal cost (E) the law of diminishing returns is activated

(C) total revenue is sufficient to cover total costs

A performance-appraisal method that utilizes evaluation information from supervisors, employees, and coworkers is known as (A) paired-comparison feedback (B) programmed-feedback decision (C) behaviorally anchored rating scale (D) 360-degree feedback (E) graphic rating scale

(D) 360-degree feedback

Which of the following is the primary concern of employees responsible for strategic planning in a company? (A) Monitoring daily cash flow (B) Determining the contribution each subunit should make to the overall corporation (C) Determining how to accomplish specific tasks with available resources (D) Determining how to pursue long-term goals with available resources (E) Preparing the annual statement

(D) Determining how to pursue long-term goals with available resources

Which competitive strategy from Porter's generic model uses unique product aspects to convince customers to pay a higher price? (A) Cost leadership (B) Focused cost leadership (C) Focused marketing (D) Differentiated competition (E) Advertising model

(D) Differentiated competition

What economic principle describes the reduction of unit costs that come when the number of units produced is increased? (A) Economic return (B) Econometric analysis (C) Economic development (D) Economies of scale (E) Competitive advantage

(D) Economies of scale

Who among the following was important in the scientific management field for promoting motion studies? (A) Max Weber (B) Henri Fayol (C) Abraham Maslow (D) Frank and Lillian Gilbreth (E) Henry Ford

(D) Frank and Lillian Gilbreth

What piece of US law requires a corporation to publish a corporate code of ethics? (A) ISO 9000 (B) ISO 10000 (C) ISO 12000 (D) ISO 14000 (E) ISO 16000

(D) ISO 14000

Which type of decision typically involves extensive data collection and detailed analysis? (A) Programmed decision (B) Critical decision (C) Time-sensitive decision (D) Non-programmed decision (E) group decision

(D) Non-programmed decision

Which of the following pairs of functions of management are most closely interdependent? (A) Staffing and organizing (B) Staffing and controlling (C) Planning and leading (D) Planning and controlling (E) Disciplining and recruiting

(D) Planning and controlling

A manager decides to lay off 10 percent of the workforce and justifies the action by noting that 90 percent still have jobs and the company will remain solvent. This manager has utilized which of the following views of ethics? (A) Rights view of ethics (B) Theory of justice view of ethics (C) Integrative social contracts view of ethics (D) Utilitarian view of ethics (E) Golden rule view of ethics

(D) Utilitarian view of ethics

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 (A) a strategic plan (B) an organizational chart (C) a tactical plan (D) a budget (E) a proposal

(D) a budget

Which of the following should be the first step in a decision-making process? (A) Implementing a decision (B) Assigning the problem to qualified personnel (C) Considering all alternatives (D) Knowing when to decide (E) Defining the problem

(E) Defining the problem

Which of the following is NOT an external environment force on an organization? (A) Sociocultural trends (B) Technology (C) Economy (D) Political trends (E) Human resources

(E) Human resources

In Michael Porter's five forces model of globalenvironmental scanning, which of the followingis one of the five forces? (A) Sociocultural factors (B) Inflation (C) Technology transfer (D) Material artifacts of culture (E) Power of suppliers

(E) Power of suppliers

Which of the following control techniques is most likely to emphasize the importance of time? (A) Break-even charts (B) Physical standards (C) Quality circles (D) Variable budgeting (E) Program Evaluation and Review Technique (PERT)

(E) Program Evaluation and Review Technique (PERT)

Which of the following is a quantitative technique that can be used to predict employee performance based on such factors as education, seniority, job-related skills, and job satisfaction? (A) Time-series analysis (B) Econometric modeling (C) Sales force composition (D) Econometric indicators (E) Regression modeling

(E) Regression modeling

The preparations that a small town might make for a visit by the President of the United States would be considered what type of plan? (A) Strategic (B) Directional (C) Standing (D) Long-term (E) Single-use

(E) Single-use