Free Practice Questions for WGU Principles-of-Management Exam

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​​.

Entrepreneurs who want to start a new business need to assess levels of risk and innovation involved in establishing a new venture. The tool commonly used to assess these dimensions is the Entrepreneurial Strategy Matrix.

Entrepreneurial Strategy Matrix(Answer D): This matrix helps entrepreneurs evaluate their business ideas by plotting the level of innovation (low to high) against the level of risk (low to high). This analysis aids in understanding the feasibility and potential success of the new venture by identifying which strategies are likely to succeed given the level of risk and innovation involved​​.

Collaboration Tracking Matrix(Answer A) andInnovation Creation Diagram(Answer B): These are not standard tools used to assess risk and innovation in entrepreneurship as described in the textbook.

Entrepreneurial Loss Function Diagram(Answer C): This is not a recognized tool for assessing risk and innovation in entrepreneurial ventures as per the principles of management.

The type of organizational design used when a company groups employees according to the tasks they perform is a functional structure. In a functional structure, employees are organized based on their specific roles or functions within the organization, such as marketing, finance, production, or human resources. This allows for specialization and efficiency within each functional area​​.

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​​.

A company offering a no-frills product to be efficient is pursuing a low-cost strategy. This strategy focuses on minimizing costs and offering products at the lowest possible price to attract cost-conscious customers. This approach involves strict cost control and operational efficiency to maintain profitability while offering lower prices than competitors​​.

The strategy the corporation is using to overcome resistance to change is participation and involvement. This approach involves engaging employees who are affected by the change,soliciting their input, and incorporating their suggestions into the change process. By involving employees, the organization can reduce resistance and gain valuable insights that facilitate smoother implementation of changes​​.

The organizational concept that best describes a manager assigning tasks to various employees is the division of labor. This concept involves breaking down work into specialized tasks that different workers or groups perform. It aims to increase efficiency and productivity by allowing employees to focus on specific functions where they can develop expertise.

Division of Labor(Answer C): This refers to the assignment of different tasks to different employees, allowing for specialization and increased efficiency in the workplace​​.

Segmentation(Answer A),Teamwork(Answer B), andIntegration(Answer D): These concepts relate to different aspects of organizational structure and functioning but do not specifically describe the assignment of tasks to employees.

The most effective conflict-resolution technique for creating a shared goal that cannot be attained without the cooperation of each of the conflicting parties is the establishment of superordinate goals.

Superordinate Goals(Answer B): Superordinate goals are overarching goals that are important to both parties in a conflict and require their cooperation to be achieved. These goals help conflicting parties to focus on common objectives and work together to achieve them, thereby reducing conflict and promoting collaboration​​.

Communication(Answer A): While communication is crucial in conflict resolution, it alone may not create a shared goal that necessitates cooperation.

Avoidance(Answer C): Avoidance is a passive approach that generally postpones the conflict rather than resolving it.

Authoritative Command(Answer D): This involves using authority to resolve the conflict, which may not create cooperation or shared goals among the parties.

The approach to change that the manager was using is facilitation and support. This method involves providing the necessary training and resources to employees to help them adapt to new changes. It includes efforts to reduce resistance by making the transition as smooth as possible and ensuring that employees feel supported during the change process​​.