WGU Principles of Management at Western Governors University (IAC1) Principles of Management Exam Questions

Answer : C

A common consideration for starting a new business venture is finding the right opportunity. This involves identifying a viable market need or problem that the new business can address effectively. It also includes evaluating the feasibility, potential profitability, and personal fit of the business idea. Entrepreneurs must thoroughly assess opportunities to ensure that their venture can achieve success and sustainability.

Answer : C

A clear and concise statement of the basic purpose of an organization is its mission. A mission statement provides a broad description of how the organization intends to achieve its vision. It specifies the organization's reason for being and answers the question, 'What business(es) should we undertake?'.

In the textbook 'Principles of Management,' a mission statement is defined as a broad description of how a firm will try to make its vision a reality, often describing the products and services the company plans to offer and the customers it plans to serve. This differentiates it from a vision statement, which is more general and focuses on what the business aspires to become in the future.

Answer : D

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.

Answer : C

When a company does something especially well in comparison to its competitors, this is evident through its core capabilities. Core capabilities refer to a firm's resources and skills that are fundamental to its business and competitive advantage. These capabilities enable the firm to differentiate itself from competitors, achieve better performance, and maintain a strong market position.

Answer : C

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.

Answer : A

To stimulate conflict and get a different perspective, bringing in outsiders is the most appropriate technique.

Bringing in Outsiders (Answer A): This technique involves introducing new individuals who have different viewpoints, which can stimulate conflict and provide new perspectives that might be overlooked by the current team. It helps in shaking up the status quo and encouraging innovative thinking.

Appointing a Devil's Advocate (Answer B): While also effective in stimulating conflict, this technique involves someone within the group challenging ideas to ensure thorough evaluation. However, it might not provide as fresh a perspective as bringing in outsiders.

Authoritative Command (Answer C) and Compromise (Answer D): These are more about resolving conflict rather than stimulating it.

Answer : C

The source of conflict between older tenured faculty and younger, nontenured faculty members at the university is structure. Structural conflicts arise due to hierarchical or organizational arrangements that create differences in status, power, or access to resources. In this scenario, the inability to terminate older tenured faculty regardless of their competence creates a structural conflict with the younger nontenured faculty who may feel disadvantaged or undervalued.