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Unit 1: Planning and Organizing

Study guide for CLEP CLEP Principles of Management — Unit 1: Planning and Organizing. Practice questions, key concepts, and exam tips.

254

Practice Questions

13

Flashcards

7

Key Topics

Key Concepts to Study

strategic planning
SWOT analysis
organizational structure
span of control
centralization vs decentralization
mission and vision
MBO

Sample Practice Questions

Try these 5 questions from this unit. Sign up for full access to all 254.

Q1MEDIUM

Which of the following is a characteristic of Theory Y?

A) Workers are inherently lazy
B) Workers are motivated by punishment
C) Workers are capable of self-direction
D) Workers require close supervision
E) Workers are only motivated by monetary incentives
Show Answer

Answer: C — Workers are capable of self-direction is correct because Theory Y assumes workers are self-motivated. Theory X, which assumes workers are lazy, is incorrect.

Q2MEDIUM

Which of the following is a barrier to effective communication?

A) Active listening
B) Clear language
C) Cultural differences
D) Similar interests
E) Open-mindedness
Show Answer

Answer: C — Cultural differences are correct because they can lead to misunderstandings, misinterpretations, and a lack of shared meaning, ultimately hindering effective communication.

Q3MEDIUM

What is a potential drawback of a trading alliance?

A) Increased economic growth
B) Improved trade balances
C) Reduced income inequality
D) Job losses in certain industries
E) Increased government revenue
Show Answer

Answer: D — Job losses in certain industries is correct because trading alliances can lead to increased competition and job losses in industries that are not competitive, as companies may outsource jobs to countries with lower labor costs.

Q4MEDIUM

What is the purpose of a training evaluation?

A) To determine the cost of training
B) To assess the effectiveness of training
C) To identify training vendors
D) To develop a training schedule
E) To select training participants
Show Answer

Answer: B — Assessing the effectiveness of training is correct because a training evaluation aims to determine whether the training achieved its intended objectives, by applying metrics and feedback to measure the impact of the training on employee performance and organizational goals.

Q5EASY

A system with no exchange of inputs and outputs with the environment is called a

A) Open system
B) Closed system
C) Subsystem
D) Synergistic system
E) Entropic system
Show Answer

Answer: B — Closed system is correct because it has no exchange of inputs and outputs with the environment, and its components interact only with each other.

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Study Tips for Unit 1: Planning and Organizing

  • Focus on understanding concepts, not memorizing facts — CLEP tests application
  • Practice with timed questions to build exam-day speed
  • Review explanations for wrong answers — they reveal common misconceptions
  • Use flashcards for key terms, practice questions for deeper understanding

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