Principles-of-Management Exam Questions and Answers

QUESTION: 9

A computer manufacturer purchases the company that supplies computer chips for the company.

Which type of corporate strategy is the company using? Choose 1 answer

Conglomerate diversification
Strategic alliance
Vertical integration
Domain selection

Answer(s): C

Explanation:

When a computer manufacturer purchases the company that supplies computer chips for the company, it is using a vertical integration strategy. Vertical integration involves expanding a company's operations into different stages of production within the same industry, such as acquiring suppliers or distributors, to increase control over the supply chain and reduce costs.

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QUESTION: 10

During an annual staff meeting the CEO of a corporation addressed the audience by stating that the long-term goal of the corporation is to "become the most competitive company in the world and to grow more rapidly than our competitors by providing the best customer service in the business."

What did the CEO's statement reflect?

Choose 1 answer

Strategic analysis
Strategic mission
Strategic vision
Strategic competencies

Answer(s): C

Explanation:

The CEO's statement about the long-term goal of the corporation reflects the strategic vision. A strategic vision articulates what the organization aspires to achieve in the future, guiding its direction and efforts. It is a broad statement that defines the desired long-term outcomes and the future state the company aims to reach.

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QUESTION: 11

Which management process has the benefits of group problem solving, information sharing, and cooperation across business functions? Choose 1 answer

Change Control
Total Quality Management
Total Control Management
Criteria for Growth

Answer(s): B

Explanation:

Total Quality Management (TQM) has the benefits of group problem solving, information sharing, and cooperation across business functions. TQM focuses on continuous improvement in all aspects of an organization's operations and involves all employees from top management to front-line workers. It encourages participation in decision-making and emphasizes collaboration and teamwork across different functions.

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QUESTION: 12

What is the purpose of the Six Sigma Quality approach? Choose 1 answer

To break down communication barriers
To analyze the causes of product defects
To promote the six most common leadership objectives
To improve employee education processes

Answer(s): B

Explanation:

The purpose of the Six Sigma Quality approach is to analyze the causes of product defects and to reduce variability in manufacturing and business processes. Six Sigma uses statistical methods to identify and eliminate defects, aiming for near perfection in production processes. It involves steps like defining the problem, measuring key aspects, analyzing the data, improving processes, and controlling the future process performance.

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QUESTION: 13

Wardrobe Web. Inc., wants to analyze defects such as late delivery, wrong shipment, and poor customer service.
Which process should the company use? Choose 1 answer

Statistical analysis
Job analysis
Social constructivist analysis
Objective analysis

Answer(s): A

Explanation:

Wardrobe Web, Inc. should use statistical analysis to analyze defects such as late delivery, wrong shipment, and poor customer service. Statistical analysis involves collecting and analyzing data to identify trends, patterns, and root causes of issues. It helps in making informed decisions to improve quality and efficiency by addressing the identified defects.

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QUESTION: 14

When developing a qualify management system, which step involves answering the question, "If you were the customer, how would you like us to operate?" Choose 1 answer

Benchmarking
Customerization
Downsizing
Reengineering

Answer(s): B

Explanation:

When developing a quality management system, the step that involves answering the question, "If you were the customer, how would you like us to operate?" is known as customerization. This process is focused on tailoring and personalizing the customer experience to meet individual needs and preferences, thus ensuring that the company's operations align closely with customer expectations and desires. By prioritizing the customer's perspective, businesses can enhance satisfaction and loyalty, which are critical components of an effective quality management system.

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QUESTION: 15

Which process is used to verify that deliverables are correct and complete? Choose 1 answer

Quality Control
Quality Collaboration
Quality Cooperative
Quality Assurance

Answer(s): A

Explanation:

The process used to verify that deliverables are correct and complete is known as Quality Control. Quality control involves the operational techniques and activities used to fulfill requirements for quality. It includes activities such as measuring, examining, and testing to gauge one or more characteristics of a product or service and the comparison of these with specified requirements to determine conformity.

Quality Control (Answer A): This process is a part of the quality management focused on fulfilling quality requirements. It involves monitoring specific project results to determine if they comply with relevant quality standards and identifying ways to eliminate causes of unsatisfactory performance.

Quality Assurance (Answer D): This process is about ensuring that quality standards and processes are adhered to, and that the final products meet those standards.
While it helps prevent defects by focusing on the process used to make the product, it is not directly involved in verifying the deliverables themselves.

Quality Collaboration (Answer B) and Quality Cooperative (Answer C): These terms are not standard processes in quality management as defined in the principles of management, thus making them incorrect choices for this question.

The textbook clearly states that quality control involves the steps taken to monitor results and ensure that they meet the required standards, making it the correct choice for verifying that deliverables are correct and complete.

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QUESTION: 16

A company believes that their manufacturing processes can be measured, analyzed, improved, and controlled. They have the commitment of the entire organization, particularly top management, to initiate a quality control process. The company has decided to produce output of their product at or below a particular defect level with the goal of improving all of their processes to that level of quality or better.

Which quality process is the company using?

Choose 1 answer

ISO 9000
Customer relationship management
Reengineering
Six Sigma

Answer(s): D

Explanation:

The quality process the company is using is Six Sigma. Six Sigma is a disciplined, data-driven approach and methodology for eliminating defects in any process. It emphasizes the measurement, analysis, improvement, and control of manufacturing and business processes with the aim of producing output at or below a particular defect level. This approach requires the commitment of the entire organization, particularly top management, to ensure continuous process improvement and to maintain high standards of quality.

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WGU Principles-of-Management Exam (page: 2) WGU Principles of Management at Western Governors University (IAC1) Updated on: 07-Feb-2026

QUESTION: 9

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QUESTION: 10

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QUESTION: 11

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QUESTION: 12

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QUESTION: 13

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QUESTION: 14

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QUESTION: 15

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QUESTION: 16

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WGU Principles-of-Management Exam (page: 2)
WGU Principles of Management at Western Governors University (IAC1)
Updated on: 07-Feb-2026