What is the most likely explanation for why compensation and rewards require a strong grasp of business acumen for compensation professionals?
A. Because the internal and external environments are constantly changing
B. Because the best interests of the organization take priority, which can lead to difficult decisions and implementation issues
C. Because they are emotional issues and stakeholders have many vested interests
D. Because strong business acumen is required for all compensation decisions
What is the term for the skills, technologies, applications and practices of continuous iterative exploration and investigation of past business performance used to gain insight and drive business planning?
A. Business forecasting
B. Business analytics
C. Predictive modeling
D. Statistical analysis
In what stage of the business lifecycle do companies typically begin standardizing procedures through policy creation?
A. Start-up
B. Growth
C. Mature
D. Decline
The XYZ Company produces innovative products and brings them to market in advance of their competitors. What strategy is XYZ using?
A. Operational excellence
B. Product/service leadership
C. Customer intimacy D. Brand loyalty
What best describes the primary purpose of budgeting?
A. Limiting spending to a fixed percentage of organizational revenue
B. Making choices about spending based on expectations of performance
C. Increasing profitability of the business annually to maximize shareholder/owner value
D. Complying with local legislation and maintaining accurate records to prepare financial reports and tax documents
An organization whose focus is on obtaining capital, marketing products or services, sales growth and cash conservation is most likely to be in what stage of the business lifecycle?
A. Start-up
B. Growth
C. Mature
D. Decline
The "Value Store" retail company offers its customers low prices and ease of purchase by minimizing waste and striving for high efficiency. What strategy is the "Value Store" using?
A. Operational excellence
B. Product/service leadership
C. Customer intimacy
D. Brand loyalty
What statement is most accurate regarding compensation communications with employees at varying levels?
A. They tend to be fairly consistent because the elements of pay may differ, but the concerns are universal.
B. They generally require a greater degree of detail for lower level employees who have less of an understanding of pay plan design.
C. They usually require more detail for senior employees regarding plan details and performance and the needs from one employee group to another can vary greatly.
D. They should be kept to a minimum for employees at all levels to maximize efficiency and efforts can be focused only on those who have questions.
How are the compensation communication needs of managers different from those of individual employees?
A. They aren't. Managers are concerned about their compensation also.
B. They are also responsible for merit increases, incentives and hiring so they have greater information needs.
C. They tend to have more influence, so it is important to resolve any concerns they have quickly and efficiently.
D. They have more duties and responsibilities and are less likely to have the time to discuss compensation issues.
The Alpha Company was once a strong company that commanded a high percentage of the market it operated in. In recent years, Alpha has been losing market share to competitors in its primary line of business and has been unable to find a competitive strategy to grow and return to profitability. Given its market position, how is Alpha most likely finding the monetary resources to continue operations?
A. By using cash from other segments of the business
B. By using its high credit rating from prior years to receive a line of credit until the strategy begins to work
C. By selling its products and services at a loss until revenue increases and slowly raising prices until it begins to break even
D. By identifying and duplicating the strategy used by its main competitor.
