Free CLEP Principles of Management Practice Questions

Sample Practice Questions

Try these 10 sample questions from the CLEP Principles of Management practice bank. Each includes the answer and explanation. Continue with the interactive practice above to review the full question set.

1. 1Which human resources document describes a position's duties and responsibilities?

   1. A.Job specification
   2. B.Job descriptionCorrect answer: B
   3. C.Performance appraisal
   4. D.Employee development plan

   Explanation: OpenStax states, "The tasks and responsibilities of a job are listed in a job description." A job specification describes the qualifications needed, while a job analysis studies the work and a supply forecast estimates available employees.

   Reference: Introduction to Business: Achieving High Performance through Human Resources Management — 8.1, HR Planning and Job Analysis and Design

2. 2In production and operations control, what does routing specify?

   1. A.The sequence of operations through which work progressesCorrect answer: A
   2. B.The time allocated to each operation in the sequence
   3. C.The available stock of materials before work begins
   4. D.The quantity of output planned for each operating period

   Explanation: The source states, "It sets out a work flow, the sequence of machines and operations through which a product or service progresses from start to finish." Routing establishes the workflow; scheduling controls timing.

   Reference: Introduction to Business: Production and Operations Control — 10.5, Routing: Where to Next?

3. 3What is the role of a tactical plan in relation to a strategic plan?

   1. A.It develops more specific objectives to implement strategic goalsCorrect answer: A
   2. B.It defines the organization's overarching mission and long-term direction
   3. C.It sets detailed methods for routine work in a single functional area
   4. D.It specifies alternatives for an unusual crisis or disruption

   Explanation: OpenStax states, "Tactical plans have a shorter (less than one year) time frame than strategic plans and more specific objectives designed to support the broader strategic goals." Tactical plans support implementation of the broader strategy.

   Reference: Introduction to Business: Planning — 6.2, Tactical Planning

4. 4In Hofstede's framework, what does power distance describe?

   1. A.Acceptance of differences in power and authorityCorrect answer: A
   2. B.Comfort with uncertain or unpredictable situations
   3. C.Preference for group membership over individual achievement
   4. D.Emphasis on advancement and earnings rather than quality of life

   Explanation: The source states, "The first cultural dimension is power distance, the degree to which members of a society accept differences in power and authority." Power distance concerns acceptance of power differences.

   Reference: Principles of Management: Hofstede's Cultural Framework — 6.2, Cultural Dimension 1: Power Distance

5. 5What does an internal labor supply forecast estimate?

   1. A.The number of employees needed to meet future demand
   2. B.The number of current employees available for future jobsCorrect answer: B
   3. C.The number of outside applicants attracted by advertising
   4. D.The number of new positions required by future expansion

   Explanation: OpenStax describes "estimating the number of people currently employed by the organization who will be available to fill various jobs at some future time; this is an internal supply forecast." This forecast concerns the future availability of current staff; a demand forecast instead estimates the number of people needed.

   Reference: Introduction to Business: Achieving High Performance through Human Resources Management — 8.1, HR Planning and Forecasting

6. 6What information does a bill of material provide in production planning?

   1. A.The components and quantities required for one productCorrect answer: A
   2. B.The components currently held in the warehouse
   3. C.The purchase orders issued to each supplier
   4. D.The quantities of finished products awaiting shipment

   Explanation: The source states, "A bill of material is then drawn up that lists the items and the number of each required to make the product." The bill identifies components and required quantities.

   Reference: Introduction to Business: Resource Planning — 10.4, Resource Planning

7. 7What is the purpose of a contingency plan?

   1. A.To specify alternatives for unusual or crisis situationsCorrect answer: A
   2. B.To establish the organization's broad long-term mission
   3. C.To coordinate routine tasks under normal operating conditions
   4. D.To translate a strategic goal into a department's ordinary targets

   Explanation: OpenStax states, "many companies have developed contingency plans that identify alternative courses of action for very unusual or crisis situations." A contingency plan prepares alternatives for exceptional events.

   Reference: Introduction to Business: Planning — 6.2, Contingency Plans

8. 8In Hofstede's framework, which dimension concerns comfort with unpredictable situations?

   1. A.Uncertainty avoidanceCorrect answer: A
   2. B.Power distance
   3. C.Individualism
   4. D.Long-term orientation

   Explanation: The source states, "Hofstede’s third cultural dimension is uncertainty avoidance, the degree to which people in a society are comfortable with risk, uncertainty, and unpredictable situations." The dimension concerns reactions to risk and uncertainty.

   Reference: Principles of Management: Hofstede's Cultural Framework — 6.2, Cultural Dimension 3: Uncertainty Avoidance

9. 9In expectancy theory, what does effort-performance expectancy describe?

   1. A.The perceived likelihood that effort will produce performanceCorrect answer: A
   2. B.The perceived likelihood that performance will produce a reward
   3. C.The personal value assigned to a particular reward
   4. D.The perceived fairness of pay compared with a coworker's

   Explanation: OpenStax states, "The effort-performance expectancy, abbreviated E1, is the perceived probability that effort will lead to performance (or E ➨ P)." The performance-to-outcome relationship, outcome value and social comparison are different concepts.

   Reference: Principles of Management: Process Theories of Motivation — 14.3, Expectancy Theory, The Basic Expectancy Model

10. 10What is the intended timing of material deliveries under a just-in-time system?

    1. A.Materials arrive when they are needed for productionCorrect answer: A
    2. B.Materials arrive well in advance to build a large safety stock
    3. C.Materials arrive on a fixed schedule regardless of production demand
    4. D.Materials arrive only after a stockout interrupts production

    Explanation: The source states, "JIT is based on the belief that materials should arrive exactly when they are needed for production, rather than being stored on-site." The system coordinates deliveries to production needs.

    Reference: Introduction to Business: Improving Production and Operations — 10.6, Lean Manufacturing