CANNON CTFA TEST 2026
COMPLETE QUESTIONS AND
VERIFIED ANSWERS
◉ Authority typically is associated with a particular
A) Person rather than a particular position
B) Department rather than a particular team
C) Position rather than a particular person
D) Person rather than a particular department
E) department rather than a particular person. Answer: C) Position rather
than a particular person
◉ For years, Kathleen served as head of the research and development
(R&D) department at Bannerman Pharmaceuticals in Chicago. She
enjoyed enormous support from her team, who liked her personally and
respected her professionally. Now she has retired, and her place has been
taken by Jerome from Bannerman's Cleveland facility. Yet employees
continue to sidestep Jerome and come directly to Kathleen for guidance,
calling or emailing her at home with questions. What is her best course
of action?
A) to call Jerome and offer some advice regarding the techniques she
has developed over the years for winning and keeping employees'
loyalty
B) to willingly offer guidance to her former direct reports, as well as her
replacement, and encourage them to involve her in settling any disputes
,C) to let employees know that she wishes she were still in charge, but
Jerome is their boss now, and there is nothing anyone can do about that
fact. Answer: E) to continually direct her former direct reports to Jerome
while emphasizing the fact that, as the new director of R&D, he has
authority over, and responsibility for, the team
◉ The ________blank dimension of an organization's structure refers to
issues as reporting relationships, authority, responsibility, and related
ideas.
A) unilateral
B) transcendental
C) horizontal
D) lateral
E) Vertical. Answer: E) Vertical
◉ Dante, an operations manager at Therma-Pro Insulation, has been put
on a big project with a tight deadline. He distributes half the work to two
other supervisors, taking care of the bigger aspects of the project
himself. This is an example of
A) span of control
B) delegation
C) unity of command
D) differentiation
E) specialization. Answer: B) delegation
, ◉ It is generally accepted that having fewer hierarchical levels creates
greater operating efficiency.
True/False. Answer: True
◉ Andrea delegates an important project to José. Andrea tells José that
he must give her regular reports. Andrea also tells José that she will take
over the work if José falls behind or does not produce quality results.
This is an example of
A) hierarchy
B) subordination
C) authority
D) differentiation
E) accountability. Answer: E) accountability
◉ A ________organization can often create scale economies and
economies of scope, which leads to advantages such as lower operating
costs, greater purchasing power, and easier access to capital.
A) small
B) large
C) highly flexible
D) mass customized
E) high agility. Answer: B) large
◉ Goal! Sportswear, a maker of clothing for soccer players, buys
textiles made in South Asia, which are then sewn into jerseys, shorts,
COMPLETE QUESTIONS AND
VERIFIED ANSWERS
◉ Authority typically is associated with a particular
A) Person rather than a particular position
B) Department rather than a particular team
C) Position rather than a particular person
D) Person rather than a particular department
E) department rather than a particular person. Answer: C) Position rather
than a particular person
◉ For years, Kathleen served as head of the research and development
(R&D) department at Bannerman Pharmaceuticals in Chicago. She
enjoyed enormous support from her team, who liked her personally and
respected her professionally. Now she has retired, and her place has been
taken by Jerome from Bannerman's Cleveland facility. Yet employees
continue to sidestep Jerome and come directly to Kathleen for guidance,
calling or emailing her at home with questions. What is her best course
of action?
A) to call Jerome and offer some advice regarding the techniques she
has developed over the years for winning and keeping employees'
loyalty
B) to willingly offer guidance to her former direct reports, as well as her
replacement, and encourage them to involve her in settling any disputes
,C) to let employees know that she wishes she were still in charge, but
Jerome is their boss now, and there is nothing anyone can do about that
fact. Answer: E) to continually direct her former direct reports to Jerome
while emphasizing the fact that, as the new director of R&D, he has
authority over, and responsibility for, the team
◉ The ________blank dimension of an organization's structure refers to
issues as reporting relationships, authority, responsibility, and related
ideas.
A) unilateral
B) transcendental
C) horizontal
D) lateral
E) Vertical. Answer: E) Vertical
◉ Dante, an operations manager at Therma-Pro Insulation, has been put
on a big project with a tight deadline. He distributes half the work to two
other supervisors, taking care of the bigger aspects of the project
himself. This is an example of
A) span of control
B) delegation
C) unity of command
D) differentiation
E) specialization. Answer: B) delegation
, ◉ It is generally accepted that having fewer hierarchical levels creates
greater operating efficiency.
True/False. Answer: True
◉ Andrea delegates an important project to José. Andrea tells José that
he must give her regular reports. Andrea also tells José that she will take
over the work if José falls behind or does not produce quality results.
This is an example of
A) hierarchy
B) subordination
C) authority
D) differentiation
E) accountability. Answer: E) accountability
◉ A ________organization can often create scale economies and
economies of scope, which leads to advantages such as lower operating
costs, greater purchasing power, and easier access to capital.
A) small
B) large
C) highly flexible
D) mass customized
E) high agility. Answer: B) large
◉ Goal! Sportswear, a maker of clothing for soccer players, buys
textiles made in South Asia, which are then sewn into jerseys, shorts,
