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EXAM GUIDE
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The first few sections of this guide explain how CLEP Promises that you can get college credit without
can earn you credit for the college-level learning you enrolling in college
have acquired and provide suggestions for preparing Efforts to sell dictionaries or encyclopedias as part
for the exams. The individual exam section includes test of a test preparation package
descriptions, sample questions, and study tips. If you feel you have been cheated, we recommend you
The guide also has an answer key for each exam, as seek the assistance of an organization such as the
well as in-depth information about how to interpret Better Business Bureau (www.bbb.org) or the Federal
your scores. Trade Commission (www.ftc.gov).
For many years, the American Council on Education’s CLEP scores are kept on file for 20 years. During this
College Credit Recommendation Service (ACE CREDIT) period, for a small fee, you may have your transcript
has periodically evaluated CLEP processes and sent to another college or to anyone else you specify.
procedures for developing, administering, and scoring Your score(s) will never be sent to anyone without
the exams. ACE recommends a uniform credit-granting your approval.
score of 50 across all subjects (with additional Level-2
recommendations for the world language exams),
representing the performance of students who earn
a grade of C in the corresponding course. The score
scale for each CLEP exam is decided by a panel of
experts (college faculty teaching the course) who
provide information on the level of student performance
that would be necessary to receive college credit in
the course.
Review the material in the section of this chapter Transcripts only include CLEP scores for the past
entitled “Questions to Ask About a College’s CLEP 20 years; scores more than 20 years old aren’t
Policy.” Use these guidelines to evaluate the college’s kept on file.
CLEP policy. If you haven’t taken a CLEP exam, this
Your CLEP scores will be evaluated, probably by
evaluation helps you decide which exams to take.
someone in the admission office, and sent to the
Because individual colleges have different CLEP
registrar’s office to be posted on your permanent
policies, reviewing several policies helps you decide
record once you’re enrolled. Procedures vary from
which college to attend.
college to college, but the process usually begins in
Step 4. If you haven’t yet applied for admission, do so the admission office.
as early as possible.
Step 6. Ask to receive a written notice of the credit you
Most colleges expect you to apply for admission several receive for your CLEP score(s).
months before you enroll, and it’s essential that you
A written notice may save you problems later when
meet the published application deadlines. It takes time
you submit your degree plan or file for graduation.
to process your application for admission. If you have
In the event that there’s a question about whether
yet to take a CLEP exam, you can take one or more
or not you earned CLEP credit, you’ll have an official
CLEP exams while you’re waiting for your application
record of what credit was awarded. You may also need
to be processed. Be sure to check the college’s CLEP
this verification of course credit if you meet with an
policy beforehand so that you’re taking exams your
academic adviser before the credit is posted on your
college will accept for credit. You should find out from
permanent record.
the college when to submit your CLEP score(s).
Step 7. Before you register for courses, seek academic
Complete all forms and include all documents
advising.
requested with your application(s) for admission.
Normally, an admission decision can’t be reached until Talking with your academic adviser helps you avoid
all documents have been submitted and evaluated. taking unnecessary courses and lets you know exactly
Unless told to do so, don’t send your CLEP score(s) until what your CLEP credit will mean to you. This discussion
you’ve been officially admitted. may take place at the time you enroll. Most colleges
have orientation sessions for new students prior to
Step 5. Arrange to take CLEP exam(s) or to submit your
each enrollment period. During orientation, students
CLEP score(s).
are assigned academic advisers who give them
CLEP exams can be taken at any of the 2,000 test individual guidance in developing long-range plans and
centers worldwide. To locate a test center near you, visit course schedules for the next semester. In conjunction
clep.collegeboard.org/search/test-centers. with this counseling, you may be asked to take some
additional tests so you can be placed at the proper
If you have already taken a CLEP exam, but didn’t have
course level.
your score sent to your college, you can have an official
transcript sent at any time for a small fee. Prior to
sending a transcript to an institution, please ensure that
you have verified the institution’s CLEP credit-granting
policy. Order your transcript online by logging in to My
Account (clepportal.collegeboard.org/myaccount)
using the same account you used to register.
Those with limited knowledge in the subjects covered Following the instructions and suggestions in
by the exams they’re considering are advised to enroll Chapter V, answer as many of the sample questions
in the college courses in which that material is taught. for the exam as you can. Check your answers
Although there’s no way to predict whether you’ll pass against the answer key at the end of each section.
a particular CLEP exam, you may find the following
guidelines helpful. Were you able to answer almost all of the
questions correctly? You may not need to study
1. Test Descriptions the subject extensively.
For each exam, read the test description and the Did you have difficulty answering the
outline set forth in the “Knowledge and Skills questions? You’ll probably benefit from more
Required” section provided in this guide. Are you extensive study of the subject.
familiar with most of the topics and terminology in
the outline? 4. Previous Study
Have you taken noncredit courses in this subject
2. Textbooks
offered by an adult school or a private school,
Review the textbook and other resource materials through correspondence, or in connection with your
used for the corresponding course at your college. job? Did you do exceptionally well in this subject
You can find a list of suggested textbooks and in high school, or did you take an honors course
free online resources for each exam at in this subject?
clep.collegeboard.org/exams. Are you familiar
with most of the topics and terminology used in 5. Experience
college textbooks on this subject? Have you learned or used the knowledge or skills
included in this exam in your job or life experience?
For example, if you lived in a Spanish-speaking
country and spoke the language for a year or
more, you might consider taking the Spanish
Language exam. Or, if you have worked at a job
in which you used accounting and finance skills,
Financial Accounting would be an exam to consider
taking. Or if you have read a considerable amount
of literature and attended art exhibits, concerts,
and plays, you might expect to do well on the
Humanities exam.
6. Other Exams
Have you done well on other standardized tests in
subjects related to the one you want to take? For
example, did you score well above average on a
portion of a college entrance exam covering similar
skills, or did you get an exceptionally high score on a
licensing exam in this subject? Although such tests
don’t cover exactly the same material as the CLEP
exams and may be easier, people who do well on
these tests often do well on CLEP exams too.
7. Advice
Has a college counselor, professor, or some other
professional person familiar with your ability advised
you to take a CLEP exam?
Don’t
Understand Terms
Understand Terms
Most
Sample Questions
Answered Di˜culty Answering
Correctly Sample Questions
5. Establish a study routine and a set of goals. solving is involved, work enough problems to
To study effectively, establish specific goals and a master the required methods and concepts. If
schedule for accomplishing them. Some people find you have difficulty with problems, review any
it helpful to write out a weekly schedule and cross sample problems or explanations in the chapter.
out each study period when it’s completed. Others e. To retain knowledge, most people have to
maintain concentration by writing down the time review the material periodically. If you’re
when they expect to complete a study task. Most preparing for an exam over an extended period
people find short periods of intense study more of time, review key concepts and notes each
productive than long stretches of time. For example, week or so. Don’t wait weeks to review the
they may follow a regular schedule of several 20- or material or you’ll need to relearn much of it.
30-minute study periods with short breaks between
them. Some people allow themselves rewards as
they complete each study goal. It doesn’t matter Test Preparation Tips
whether you accomplish every goal on schedule. 1. Familiarize yourself as much as possible with the
The point is to be committed to your task. test and the test situation before the day of the
exam. It helps to know ahead of time:
6. Learn how to take an active role in studying.
a. how much time is allowed for the test and
If you haven’t done much studying lately, you may find whether there are timed subsections. (See
it difficult to concentrate. Try a method of studying, Chapter VII.)
such as the one outlined below, that gets you to
b. what types of questions and directions appear
concentrate on and remember what you read.
on the exam. (See Chapter VII.)
a. First, read the chapter summary and the c. how your test score is computed.
introduction so you’ll know what to look for d. in which building and room the exam is
in your reading. administered.
b. Next, convert the section or paragraph e. the time of the test administration.
headlines into questions. For example, if you’re
f. directions, transportation, and parking
reading a section entitled “The Causes of the
information for the test center.
American Revolution,” ask yourself, “What
were the causes of the American Revolution?” 2. Register and pay your exam fee through My Account
Compose the answer as you read the at clepportal.collegeboard.org/myaccount and print
paragraph. Reading and answering questions your registration ticket. Contact your preferred test
aloud let you grasp and retain the material. center to schedule your appointment to test. Your test
center may require an additional administration fee.
c. Take notes on key ideas or concepts as you
Check with your test center to confirm the amount
read. Writing fixes concepts more firmly in your
required and acceptable method of payment.
mind. Underlining key ideas or writing notes in
your book may work for you and is useful for
review. Underline only important points. If you
underline more than a third of each paragraph,
you’re underlining too much.
d. If there are questions or problems at the end
of a chapter, answer or solve them on paper
as if you were asked to do them for homework.
Mathematics textbooks (and some other books)
sometimes include answers to exercises. If you
have such a book, write your answers before
looking at the ones given. When problem
3. On the day of the exam, remember to do the – two number 2 pencils with good erasers.
following: Mechanical pencils are prohibited in the
a. Arrive early enough so you can find a parking testing room.
place, locate the test center, and get settled c. Don’t bring a cell phone or other electronic
comfortably before testing begins. devices into the testing room.
b. Bring the following with you: d. Leave all books, papers, and notes outside the
– completed registration ticket. test center. You aren’t permitted to use your
own scratch paper. It’s provided by the test
– any registration forms or printouts required by
center.
the test center. Make sure you have filled out
all necessary paperwork before your testing e. Don’t take a calculator to the exam. If a
date. calculator is required, it will be built into the
testing software and available to you on the
– a form of valid and acceptable identification.
computer. The CLEP website has a link to a
Acceptable identification must:
demonstration on how to use online calculators.
∙ Be government-issued.
4. When you enter the test room:
∙ Be an original document—photocopied
a. You’ll be assigned to a computer testing
documents aren’t acceptable.
station. If you have special needs, be sure
∙ Be valid and current—expired to communicate them to the test center
documents (bearing expiration dates administrator before your test date.
that have passed) aren’t acceptable, no
b. Be relaxed while taking the exam. Read directions
matter how recently they expired.
carefully, and listen to instructions given by the
∙ Bear the test taker’s full name, in test administrator. If you don’t understand the
English language characters, exactly as directions, ask for help before the test begins. If
it appears on the Registration Ticket, you must ask a question not related to the exam
including the order of the names. after testing has begun, raise your hand, and a
∙ Include middle initials only if preferred proctor will assist you. The proctor can’t answer
to be included by test taker. They’re questions related to the exam.
optional and only need to match the first c. Know your rights as a test taker. You can expect
letter of the middle name when present to be given the full working time allowed for
on both the ticket and the identification. taking the exam and a reasonably quiet and
∙ Bear a recent recognizable photograph comfortable place in which to work. If a poor
that clearly matches the test taker. testing situation prevents you from doing your
∙ Include the test taker’s signature. best, ask whether the situation can be remedied.
If it can’t, ask the test administrator to report
∙ Be in good condition, with clearly legible
the problem on a Center Problem Report that
text and a clearly visible photograph.
will be submitted with your test results. You may
Refer to the Exam Day Info page on the
also wish to immediately write a letter to CLEP,
CLEP website (clep.collegeboard.org/
P.O. Box 6656, Princeton, NJ 08541-6656.
earn-college-credit/taking-the-test)
Describe the exact circumstances as completely
for more details on acceptable and
as you can. Be sure to include the name of the
unacceptable forms of identification.
test center, the test date, and the name(s) of the
exam(s) you took.
– military test takers, bring your Geneva
Convention Identification Card. Refer to
clep.collegeboard.org/military for additional
information on IDs for active duty members,
spouses, and civil service civilian employees.
7. Which of the following best illustrates informal 10. Frederick Taylor is considered a pioneer in the
organization? school of management referred to as the
(A) Line authority, such as that of the field (A) management process school
marshal and battalion commander in (B) empirical school
the military
(C) scientific management school
(B) Staff authority, such as that of personnel
or cost control in manufacturing (D) behaviorist school
(C) Functional authority, such as corporate (E) social system school
supervision of the legal aspect of pension
plans in branch plants 11. Preparation of which of the following is the
(D) Groupings based on position titles most logical first step in developing an annual
(E) Groupings based on such factors as technical operating plan?
ability, seniority, and personal influence
(A) A sales forecast by product
(B) A production schedule by product
8. The choice of organizational structure to be
used in a business should be (C) A flow-of-funds statement by product
(D) A plant and equipment requirement forecast
(A) made by mutual agreement among all the
people affected (E) A pro forma income statement and
balance sheet
(B) made by organization specialists rather
than managers
(C) subject to definite and fixed rules 12. A large span of control throughout an
(D) based on the objectives of each individual organization invariably results in
business (A) low morale
(E) based on consideration of the type of (B) high morale
organizational structures used by
competitors (C) an excess workload for each manager
(D) a flat (horizontal) organizational structure
9. Which of the following best describes a system (E) a tall (vertical) organizational structure
that requires subassemblies and components to
be manufactured in small lots and delivered as 13. Which of the following is a conflict-resolution
needed to the next stage of production? practice that seeks to satisfy both parties in a
(A) Just in time (JIT) conflict?
(B) Small batch inventory (SBI) (A) Avoidance
(C) Inventory readiness (IR) (B) Stipulation
(D) Inventory preparedness (C) Competition
(E) Integrated preparedness (IP) (D) Collaboration
(E) Appeal to authority
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14. Which of the following is most commonly used 18. A type of control device for assessing the
to measure the total productivity of a company? progress of planned activities and the
expenditure of resources allocated to their
(A) The ratio between total outputs and total accomplishments is referred to as
inputs
(B) The ratio between fixed costs and variable (A) a strategic plan
costs (B) an organizational chart
(C) The ratio between contribution margin and (C) a tactical plan
total revenue (D) a budget
(D) The ratio between the break-even point and (E) a proposal
total output
(E) The ratio between total inputs and total
capital 19. Beatrice is a full-time employee who is
permitted to arrange her schedule so that she
works only four days a week and does not travel
15. The practice in large companies of establishing during rush hour. This is an example of
autonomous divisions whose heads are entirely Beatrice’s employer
responsible for what happens in the division is
referred to as (A) applying the Civil Rights Act, Title VII
(B) scheduling flextime
(A) management by exception
(C) engaging in sexual discrimination
(B) decentralization of authority
(D) encouraging low productivity
(C) delegation of authority
(E) enhancing compensation
(D) integration
(E) informal organization
20. According to Maslow, the need to feel genuinely
respected by peers, both in and out of the work
16. Which of the following control techniques is environment, is included in which of the
most likely to emphasize the importance of following need classifications?
time?
(A) Physiological
(A) Break-even charts (B) Safety
(B) Physical standards (C) Stability
(C) Quality circles (D) Esteem
(D) Variable budgeting (E) Self-actualization
(E) Program Evaluation and Review Technique
(PERT)
21. Which of the following management activities
is most typically described as a controlling
17. In a labor negotiation, if a third party has the function?
power to determine a solution to a labor dispute
between two parties, the negotiation is known as (A) Goal setting
(B) Purchasing
(A) a grievance
(C) Budgetary review
(B) an arbitration
(D) Staffing
(C) a conciliation
(E) Recruiting
(D) a mediation
(E) a concession
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22. Which of the following personality traits best 26. Which of the following best describes a team
describes individuals who can adapt and adjust that brings together organizational members
their behavior to external factors? from various areas such as marketing,
engineering, human resources, and production
(A) Low self-esteem to work on a task?
(B) External locus of control
(A) Command
(C) High self-monitoring
(B) Self-managed
(D) Low authoritarianism
(C) Cross-functional
(E) High authoritarianism
(D) Restrictive
(E) Informal
23. A person who believes that the ends justify the
means is best described as
27. Which of the following is NOT an input,
(A) self-confident according to equity theory?
(B) Machiavellian
(A) Effort
(C) authoritarian
(B) Experience
(D) having cognitive dissonance
(C) Education
(E) having an internal locus of control
(D) Seniority
(E) Pay incentives
24. In which of the following situations are groups
most effective?
28. Which of the following terms best describes
(A) Cohesive groups with groupthink leaders who guide or motivate their followers in
(B) Noncohesive groups without groupthink the direction of established goals by stressing
(C) Cohesive groups in alignment with rewards and the consequences of not conforming
organizational goals to expectations?
(D) Noncohesive groups in alignment with (A) Transactional
organizational goals
(B) Transformational
(E) Cohesive groups not in alignment with
(C) Charismatic
organizational goals
(D) People-oriented
(E) Informal
25. If a manager commits a halo error in
performance appraisal, the manager may have
done which of the following? 29. Which of the following is the primary purpose of
the management-by-objectives (MBO)
(A) Based assessment on most recent approach?
performance rather than an entire period.
(B) Based assessment on an entire period (A) Aligning goal setting and planning
performance rather than most recent. (B) Creating a dynamic and complex work
(C) Based assessment on a single attribute of environment
employees’ performance. (C) Reducing employee resistance to change
(D) Given every employee the same rating of (D) Implementing standard operating procedures
“average.” (E) Implementing a decision rule to respond to a
(E) Failed to give feedback to employees about designated problem
their performance.
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30. Which of the following is best defined as a 34. Which of the following describes the critical
process that involves defining organizational path in a Program Evaluation and Review
objectives and goals, establishing an overall Technique (PERT) process?
strategy, and developing a hierarchy of plans
to integrate activities? (A) Parts that require the most costly materials
(B) The most time-consuming sequence of
(A) Manipulating events and activities
(B) Leading (C) The shortest route to the project completion
(C) Planning (D) The central guideline for quality control
(D) Managing by objectives (E) The property insurance
(E) Controlling
35. Which of the following oversees the
31. Which of the following terms best describes transformation process that converts inputs
a corporation’s sexual harassment policy? such as labor and raw materials into outputs
such as goods and services?
(A) A single-use plan
(B) A standing plan (A) Operation management
(C) A strategic plan (B) Control management
(D) A short-term plan (C) Strategic management
(E) A specific plan (D) Human resource management
(E) Project management
32. The preparations that a small town might make
for a visit by the President of the United States 36. An employee manual is given by a supervisor to
would be considered what type of plan? employees reporting to that supervisor. The
manual outlines attendance policies. This is an
(A) Strategic example of which of the following methods of
(B) Directional developing norms in groups?
(C) Standing
(A) First behavior precedents
(D) Long-term
(B) Secondary behavior
(E) Single-use
(C) Explicit statements from an authority figure
(D) Critical events in the team’s history
33. Which of the following best describes a type (E) Carryover from other experiences
of planning in which multiple scenarios are
developed to test possible future outcomes?
37. The behavior of young athletes when they imitate
(A) Queuing theory the way they see professional athletes celebrate
(B) Simulations on television is most likely explained as
(C) Linear regression
(A) classical conditioning
(D) Marginal profits
(B) operant conditioning
(E) Project management
(C) cognitive learning
(D) social learning
(E) behavior modification
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38. Which of the following best describes the 42. If George blames new software for his group’s
situation in which an employee arrives for poor performance in the most recent quarter, but
work on time in order to avoid being placed attributes the group’s success in the prior quarter
on probation for a second time? to his outstanding managerial skills, he is most
likely exhibiting
(A) Positive reinforcement
(B) Negative reinforcement (A) projection
(C) Extinction (B) selective perception
(D) Intermittent reinforcement (C) fundamental attribution error
(E) Cognitive learning (D) self-serving bias
(E) Pygmalion effect
39. Which of the following are most likely to cause
a team to avoid groupthink? 43. Praise received from an employee’s peers is best
described as an example of
I. The team holds a second-chance meeting.
(A) an extrinsic reward
II. Outside experts are invited to observe and
react to the group process. (B) an intrinsic reward
III. The team leader expresses an opinion at the (C) low valence
outset of the meeting to save time. (D) high instrumentality
(E) high directive leadership
(A) I only
(B) I and II only
(C) I and III only 44. Which of the following procedures is (are)
appropriate when disciplining an employee?
(D) II and III only
(E) I, II, and III I. Advising the employee of what he or she
has done wrong.
40. If a manager announces a casual-dress policy on II. Advising the employee of what he or she
Fridays and then comes to work dressed casually does well.
on the following Friday, this is an example of III. Disciplining the employee in private.
(A) planning (A) I only
(B) organizing (B) II only
(C) leading (C) I and II only
(D) controlling (D) II and III only
(E) negative reinforcement (E) I, II, and III
41. Which of the following models classifies 45. When a company adopts telecommuting, which
products as stars, question marks, cash cows, core job characteristic is likely to be influenced
or dogs? the most?
(A) Porter’s five forces model (A) Skill variety
(B) Theory X (B) Task identity
(C) The Boston Consulting Group Matrix (C) Task significance
(D) Theory Y (D) Autonomy
(E) Kanban (E) Job feedback
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46. If jobs are designed so that each worker 50. In their classic study of the bases of social
assembles a different part of a product on power, John R. P. French and Bertram Raven
an automated assembly line, the job design explicitly identified all of the following sources
is most likely to EXCEPT
(A) provide high levels of intrinsic rewards (A) referent
(B) be highly challenging (B) expert
(C) make it easy to train workers (C) coercive
(D) be highly satisfying (D) information
(E) demand creativity from the workers (E) reward
47. If individual contributions in a group project 51. If an investor buys a stock based on the
are not evaluated, which of the following is recommendation of a broker because the
likely to occur? broker’s previous recommendations have
been profitable, the broker possesses which
(A) Synergy type of power?
(B) Task significance
(A) Referent
(C) Social loafing
(B) Legitimate
(D) The Leavitt effect
(C) Informal authority
(E) Vertical loading
(D) Charismatic
(E) Expert
48. Determining whether membership of a group
should be heterogeneous or homogeneous
should be most influenced by which of the 52. Which of the following styles of leadership is
following factors? most likely to be effective with workers who
have experience and are professionally oriented?
(A) The group size
(B) Status congruence (A) Supportive
(C) The organizational setting (B) Task-oriented
(D) The goals, rewards, and resources (C) Achievement-oriented
(E) The nature of the task (D) Mentoring
(E) Authoritarian
49. Which of the following describes the most
favorable situation for a leader of a group? 53. “You are always late to meetings
and this will have to change!”
(A) The group has high group cohesiveness and
positive group performance norms Which of the following best describes the
(B) The group has high group cohesiveness and comment above by a manager to an employee?
negative group performance norms
(A) Proxemics
(C) The group has low group cohesiveness and
positive group performance norms (B) Constructive feedback
(D) The group has low group cohesiveness and (C) A general overspecific comment
negative group performance norms (D) A specific overgeneral comment
(E) The group has both moderate cohesiveness (E) Nonverbal communication
and moderate performance norms
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54. The power base that relies on the use of 58. Which of the following pairs of functions of
knowledge to persuade is best described as management are most closely interdependent?
(A) rewards (A) Staffing and organizing
(B) expert (B) Staffing and controlling
(C) referent (C) Planning and leading
(D) coercive (D) Planning and controlling
(E) legitimate (E) Disciplining and recruiting
55. Which of the following is the most accurate 59. Which of the following is the primary concern
description of a grapevine in an organization? of employees responsible for strategic planning
(A) It is a constant source of disruptive in a company?
information. (A) Monitoring daily cash flow
(B) It follows the chain of command.
(B) Determining the contribution each subunit
(C) It can be suppressed once it is recognized. should make to the overall corporation
(D) It plays an important role in organizations. (C) Determining how to accomplish specific
(E) Most managers believe that it is a positive tasks with available resources
source of information. (D) Determining how to pursue long-term goals
with available resources
56. Which of the following business situations is (E) Preparing the annual statement
most appropriate for telecommuting?
(A) Workers thrive on competition. 60. Which of the following is most likely to result
(B) Decisions and actions are predetermined. from the use of flowcharts in planning?
(C) Decisions rely on negotiation and social (A) A guarantee that work will progress
interaction. according to schedule
(D) There is an oversupply of workers.
(B) A visual sequencing of activities
(E) Individual productivity is of primary
(C) A chart useful for comparing cash flow
importance.
during two different quarters
(D) A scheduling process
57. Empowerment opportunities are LEAST likely
(E) A combined sequencing and scheduling plan
to be found in which of the following?
(A) Participative goal setting
61. Which of the following is a deterrent to
(B) Serving as a messenger “escalation of commitment”?
(C) Delegation of work
(D) Self-managed teams (A) A desire to justify earlier decisions
(E) Freedom to experiment (B) Organizational politics
(C) An efficiency “reality check”
(D) The Abilene paradox
(E) A cultural emphasis on persistence
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62. Which of the following is most likely to be 66. The span of control most appropriate in a given
a major advantage of group-aided decision organization is primarily influenced by which of
making? the following?
(A) Social pressure can drive the decision. (A) Types of services or products being
(B) Goal displacement and hidden agendas produced
can occur. (B) Amount of supervision needed by
subordinates
(C) Groupthink may occur.
(C) Amount of authority given to a supervisor
(D) The likelihood that the decision will be
accepted increases. (D) Number of hierarchical levels within the
organization
(E) It frequently saves both time and money.
(E) Presence of work teams
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79. Job enrichment can be an effective tool to Questions 83–84 are based on the following
achieve which of the following? information.
(A) Better communication Ruth has been the chief executive officer of her
(B) Increased job responsibility company for fifteen years. Ten years ago, Ruth
utilized the Internet to augment the traditional way
(C) Improved work relations
of doing business, but she did not intend the Internet
(D) Teamwork to replace her company’s main source of revenue.
(E) Shared decision making Five years ago, Ruth’s company began to use the
Internet to perform traditional business functions
80. Social Security, unemployment benefits, and better but did not sell anything on the Internet.
workers’ compensation are benefits required by Also, the company began to utilize an intranet as
law. If a company has 120 employees, what an internal organizational communication system.
other benefit does federal law require a company Last year, Ruth decided that her company’s total
to provide? existence must revolve around the Internet, leading
to a seamless integration between traditional and
(A) Health insurance only e-business functions.
(B) Paid vacations only
(C) Family and medical leave 83. Ten years ago, Ruth’s company would have been
(D) Both health insurance and paid vacations classified as which type of e-business?
(E) Flextime
(A) A total e-business organization
(B) An e-business enhanced organization
81. Which of the following best describes
managerial ethics? (C) An e-business enabled organization
(D) An e-business committed organization
(A) It is the social obligation that the individual (E) An e-business learning organization
manager has to fulfill.
(B) It is a statement of the social responsibility
of the organization. 84. Five years ago, Ruth’s company would have
(C) It is the standard of conduct that guides a been classified as which type of e-business?
person’s decisions and behavior. (A) A total e-business organization
(D) It is the mission statement of the (B) An e-business enhanced organization
organization.
(C) An e-business enabled organization
(E) It is a behavior that conforms to legal
principles of justice. (D) An e-business committed organization
(E) An e-business learning organization
82. A manager decides to lay off 10 percent of the
workforce and justifies the action by noting that 85. According to Hofstede, the degree of
90 percent still have jobs and the company will individualism found in a country is most closely
remain solvent. This manager has utilized which related to which of the following characteristics?
of the following views of ethics?
(A) Age
(A) Rights view of ethics
(B) Wealth
(B) Theory of justice view of ethics
(C) Religion
(C) Integrative social contracts view of ethics
(D) Location
(D) Utilitarian view of ethics
(E) Democracy
(E) Golden rule view of ethics
620
86. A multinational company expands its operation 90. In one stage of group development, group
to Brazil and hires Brazilians to manage the members come to accept and understand one
operation of the new branch. The company is another; differences are resolved and members
using which type of approach to expand its develop a sense of team cohesion. This stage of
operations? group development is known as
(A) Ethnocentric (A) Adjourning
(B) Polycentric (B) Performing
(C) Monocentric (C) Storming
(D) Geocentric (D) Norming
(E) Egocentric (E) Forming
87. Knowledge management involves encouraging 91. Solomon is reviewing the types of power the
members of an organization to company has provided him for his job as a
department head. A certain degree of authority
(A) create educational programs targeted at the comes with his position. He will directly
average employee exercise authority through which form of power?
(B) develop new training programs to help new
employees learn their jobs (A) Referent
(C) develop a corporate university to provide (B) Information
educational solutions in-house (C) Expert
(D) systematically gather information and share (D) Legitimate
it with others (E) Decision making
(E) retrain top managers through traditional
MBA programs
92. A performance-appraisal method that utilizes
evaluation information from supervisors,
88. Which of the following is the type of team that employees, and coworkers is known as
is made up of experts in various specialties
working together on various organizational (A) paired-comparison feedback
tasks? (B) programmed-feedback decision
(C) behaviorally anchored rating scale
(A) Functional
(D) 360-degree feedback
(B) Cross-functional
(E) graphic rating scale
(C) Self-directed
(D) Vertical
(E) Autonomous 93. Which of the following refers to gender-related
problems in the career advancement of
employees?
89. Which of the following types of questions would
be the best to use during a job interview? (A) Flextime
(B) Glass ceiling
(A) Open-ended
(C) Job enrichment
(B) Rotational
(D) Job sharing
(C) Technology-ended
(E) Career anchor
(D) Prodding
(E) Hypocritical
621
94. The breakeven point is defined as the level of 99. Which of the following should be the first step in
production at which a decision-making process?
(A) fixed costs are covered by revenue (A) Implementing a decision
(B) variable costs are covered by revenue (B) Assigning the problem to qualified
(C) total revenue is sufficient to cover total costs personnel
(D) marginal revenue equals marginal cost (C) Considering all alternatives
(E) the law of diminishing returns is activated (D) Knowing when to decide
(E) Defining the problem
95. Which technology integrates financial,
marketing, operational, and human resource 100. Which of the following can best be described as
applications on a single computer system? a planning function?
(A) Universal application server (UAS) (A) Monitoring operations
(B) Material requirements planning (MRP) (B) Determining objectives
(C) Vendor managed inventory (VMI) (C) Acquiring necessary resources
(D) Electronic data exchange (EDI) (D) Controlling inventory
(E) Enterprise resource planning (ERP) (E) Coordinating interdepartmental activities
96. The Hawthorne studies are examples of which 101. Which of the following people is associated
management approach? with the development of the Theory X and
Theory Y model?
(A) Classical
(B) Behavioral (A) Abraham Maslow
(C) Modern (B) Elton Mayo
(D) Administrative (C) Douglas McGregor
(E) Scientific (D) Frederick Taylor
(E) Lillian Gilbreth
97. A Gantt chart is a visual depiction of the time
frame planned for completing specific tasks as 102. If the verbal and nonverbal parts of a manager’s
compared to which of the following? message are in conflict, research suggests that
(A) The delivery date promised to the customer an employee usually should believe which of
the following?
(B) The actual progress made on each task
(C) The manager’s projected task completion (A) The verbal message only.
(D) The budgeted task completion (B) The nonverbal message only.
(E) The weighted-average task-completion score (C) Either depending on the circumstance.
(D) Neither the verbal nor the nonverbal parts
98. A manager who outlines a problem to of the message.
employees, accepts suggestions, and makes a (E) It is impossible to judge which part of the
decision is said to be following what style of message should be believed.
leadership?
(A) Free reign
(B) Democratic
(C) Charismatic
(D) Autocratic
(E) Laissez-faire
103. The process of discovering relationships and 107. Which of the following is a quantitative
patterns in large amounts of data is called data technique that can be used to predict employee
performance based on such factors as
(A) mining education, seniority, job-related skills, and job
(B) clustering satisfaction?
(C) encryption (A) Time-series analysis
(D) networking (B) Econometric modeling
(E) warehousing (C) Sales force composition
(D) Econometric indicators
104. The style of leadership in which the manager (E) Regression modeling
shouts and screams is typical of
(A) participative leadership 108. Who among the following was important in the
(B) benevolent leadership scientific management field for promoting
motion studies?
(C) autocratic leadership
(D) free-rein leadership (A) Max Weber
(E) democratic leadership (B) Henri Fayol
(C) Abraham Maslow
(D) Frank & Lillian Gilbreth
105. The hierarchy of needs theory argues that
deficiency needs must be met before the push (E) Henry Ford
to satisfy growth needs drives personal growth.
The individual most commonly associated with 109. Elton Mayo was famous for which of the
this theory is following?
(A) Peter Drucker (A) Theory X
(B) Henri Fayol (B) Theory Y
(C) Abraham Maslow (C) The Hawthorne Studies
(D) Elton Mayo (D) Administrative management
(E) F. W. Taylor (E) Bureaucratic management
106. In a company, Employee A is scheduled to 110. Which of the following is NOT an external
work from 9 a.m. to 6 p.m., while Employee B environment force on an organization?
is scheduled to work from 7 a.m. to 4 p.m.
(A) Sociocultural trends
This situation is an example of which of the
following? (B) Technology
(C) Economy
(A) Flextime (D) Political trends
(B) Job sharing (E) Human resources
(C) Job enrichment
(D) Compressed work schedule
(E) Telecommuting
623
Study Resources
Answer Key
Most textbooks used in college-level principles of
management courses cover the topics in the outline
1. C 29. A 57. B 85. B
given earlier, but the approaches to certain topics
2. B 30. C 58. D 86. B
and the emphases given to them may differ. To 3. E 31. B 59. D 87. D
prepare for the Principles of Management exam, 4. E 32. E 60. B 88. B
it’s advisable to study one or more college 5. D 33. B 61. C 89. A
textbooks, which can be found in most college 6. A 34. B 62. D 90. D
bookstores. When selecting a textbook, check the 7. E 35. A 63. E 91. D
table of contents against the knowledge and skills 8. D 36. C 64. D 92. D
required for this test. 9. A 37. D 65. A 93. B
Visit clep.collegeboard.org/earn-college- 10. C 38. B 66. B 94. C
credit/practice for additional management 11. A 39. B 67. E 95. E
resources. You can also ÿnd suggestions for exam 12. D 40. C 68. D 96. B
preparation in Chapter IV. In addition, many 13. D 41. C 69. D 97. B
14. A 42. D 70. D 98. B
college faculty post their course materials on their
15. B 43. A 71. B 99. E
schools’ websites.
16. E 44. E 72. D 100. B
17. B 45. D 73. A 101. C
18. D 46. C 74. C 102. B
19. B 47. C 75. A 103. A
20. D 48. E 76. C 104. C
21. C 49. A 77. E 105. C
22. C 50. D 78. E 106. A
23. B 51. E 79. B 107. E
24. C 52. C 80. C 108. D
25. C 53. C 81. C 109. C
26. C 54. B 82. D 110. E
27. E 55. D 83. B
28. A 56. E 84. C
624
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