CLEP Principles Of Management Exam

The CLEP: Principles of Management examination was developed by the College Board as a way for individuals to demonstrate undergraduate-level knowledge and skills in this subject. Almost three thousand American colleges give credit to students who pass a CLEP exam; for this reason, many college-bound students take a CLEP exam in order to skip over introductory courses.

To succeed on the Principles of Management exam, students will need to master the following topics and skills: the purposes, functions, and techniques of management (approximately 10% of the exam); the specific terminology of management ideas, processes, techniques, concepts, and elements (40%); management theory and the underlying assumptions, concepts, and limitations of management data (40%); and the application of knowledge, general concepts, and principles to specific problems (10%). The content of the exam is broken down as follows: organization and human resources (15-25% of the exam); operational aspects of management (10-20%); functional aspects of management (45-55%); and international management and contemporary issues (10-20%). The Principles of Management exam consists of 100 multiple-choice questions and must be completed within 90 minutes.


After the exam is complete, an unofficial score report will be made available. This score report will include the total score on a scale of 20 to 80; the American Council on Education recommends that students get credit if they score 50 or above. The total score is the raw score (number of correct answers) adjusted according to the difficulty of the exam version. The College Board does not distinguish between unanswered questions and questions answered incorrectly, so test-takers are encouraged to respond to every question. Some of the questions on the exam are pre-test questions, which are used to develop future versions of the exam and do not contribute to the raw score. It is impossible for test-takers to determine which questions are pre-test questions. The CLEP exams are administered in both computer and paper formats at over a thousand locations throughout the world. To register for an exam, visit the College Board website.

CLEP Principles Of Management Practice Questions

1. What is the term used to define the number of subordinates directly controlled by a manager?
A: division management
B: departmentation
C: sphere of influence
D: investment span
E: span of management

2. Which management theorist is responsible for the motivation-hygiene theory?
A: Abraham Maslow
B: Dale Hawthorne
C: Peter Drucker
D: Frederick Herzberg
E: Dave Pelz

3. What kind of organizational structure combines a vertical chain of command with horizontal reporting requirements?
A: line authority
B: matrix
C: functional
D: quality circle
E: line-and-staff

4. What is the name for a contract that expressly forbids an employee from joining a union?
A: fixed-price contract
B: yellow-dog contract
C: blacklist contract
D: cost-reimbursement contract
E: unfair list contract

5. What kind of training program is most appropriate for a simple task?
A: on-the-job training
B: vestibule training
C: laboratory training
D: away-from-the-job training
E: job rotation

6. Which leadership theory suggests that management style should adapt itself to changing circumstances?
A: autocratic theory
B: participatory theory
C: permissive theory
D: delegation theory
E: contingency theory

7. According to Abraham Maslow, the most elevated type of need is _____.
A: safety
B: esteem
C: self-actualization
D: physiological
E: social

8. Which of the following was NOT a result of the Wagner Act of 1935?
A: employers were forbidden from interfering with union activity.
B: the National Labor Relations Board was created.
C: a normal workweek was defined as 40 hours.
D: employers could no longer engage in collective bargaining with unions.
E: employers could no longer discriminate in hiring and firing based on union membership.

9. Which management concept suggests that low-importance decisions be handled by subordinates, so that managers can focus on high-importance decisions?
A: management by exception
B: exclusionary management
C: inclusionary management
D: management by objective
E: participatory management

10. Which human resource document outlines the qualifications required for the jobholder?
A: job announcements
B: job specification
C: job application
D: job description
E: job portfolio

CLEP Principles Of Management Answer Key

1. E. The span of management should be determined by the manager’s expertise and the demands on his or her time.
2. D. Herzberg asserted that job performance is the result of a combination of extrinsic and intrinsic motivators.
3. B. A matrix organization is especially good at channeling information throughout an organization.
4. B. The Norris-LaGuardia Act of 1932 outlawed yellow-dog contracts.
5. A. Simple jobs can be learned on the fly, without sacrificing time for comprehensive training.
6. E. Contingency theory suggests that managers should take an objective look at the organization before adopting a particular management style.
7. C. Self-actualization can only be considered when physiological and social needs have been achieved.
8. C. The Wagner Act made labor unions a much more powerful bargaining agent.
9. A. Management by exception essentially means concentrating managerial efforts on irregular events.
10. B. A job specification form should be completed by the human resource department before interviewing applicants.