Business Acumen for Compensation Professional v7.0

Page:    1 / 6   
Exam contains 78 questions

Regarding market position, a business with a high market share but low growth potential is typically referred to as what?

  • A. A Star
  • B. A Question Mark
  • C. A Market Leader
  • D. A Cash Cow


Answer : D

What best describes what forecasting helps the organization to do?

  • A. Recognize possible issues and concerns that will drive budget planning
  • B. Prepare quarterly and annual reports and their associated statements
  • C. Withhold payroll taxes for all elements of compensation
  • D. Anticipate future capital needs by determining when the organization will enter the next phase of the business lifecycle


Answer : A

A fine jewelry chain distinguishes itself from the competition by focusing on carefully selected customers and building bonds to meet or exceed their needs and expectations.
What strategy is this company using?

  • A. Operational excellence
  • B. Product/service leadership
  • C. Customer intimacy
  • D. Brand loyalty


Answer : C

Which of the following factors has the greatest impact on how aggressive a stance (high vs. low) an organization will take in terms of where it positions itself against the market with its compensation strategy?

  • A. The industry it operates in
  • B. The bottom line
  • C. The organizational headcount
  • D. The risk tolerance of compensation leaders


Answer : B

Which of the following is the earnings available to equity owners after paying debt and taxes?

  • A. EBIT
  • B. EPS
  • C. Net income
  • D. Operating profit


Answer : C

What is the most accurate statement regarding forecasting?

  • A. It is a precise estimate of what the future holds for the organization.
  • B. It is done primarily by using historical revenue and expense data.
  • C. It is done primarily by evaluating market conditions and economic indicators.
  • D. It uses internal and external factors to help answer questions about business expectations for the future.


Answer : D

What best describes the most effective tactic for getting stakeholders’ attention and buy-in?

  • A. Ask them to review or provide feedback, especially on something you have done for them
  • B. Talk to the individuals they report to in advance and gain their support so the stakeholders realize upper management already supports your position
  • C. Schedule a meeting of all stakeholders and make a strong case that overcomes all of their objections
  • D. Explain in precise terms to each stakeholder how your position is the most realistic approach to the issue or concern


Answer : A

What question is answered by the organization’s mission statement?

  • A. What direction will we take?
  • B. How do we work?
  • C. Why are we in business?
  • D. How will we achieve our objectives?


Answer : C

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


Answer : B

What best describes an effective core technique for communicating with executives?

  • A. Focus on negative issues first, such as compensation costs exceeding budget, to get their attention
  • B. Provide a wide range of facts and figures. With their high level of responsibility, executives must have all the data before they can make informed decisions.
  • C. Assume they have little knowledge of the issue and make a detailed presentation leading up to the purpose of the meeting.
  • D. Recommend a solution that will solve the issue and explain why it is the best solution available.


Answer : D

The XYZ Company focuses on maintaining/increasing market share and its products tend to be more evolutionary than revolutionary. What stage of the business lifecycle is XYZ most likely in?

  • A. Start-up
  • B. Growth
  • C. Mature
  • D. Decline


Answer : C

What is the most accurate statement regarding the effect of compensation plans on the organization?

  • A. They typically have the greatest effect on net income and operating results of any organizational expense or program
  • B. Their success or failure is closely tied to the success or failure of organizationwide goals and objectives
  • C. They have very little effect as long as they are managed effectively and efficiently
  • D. They affect the organizations overall financial status and impact multiple stakeholders across most, if not all, business units


Answer : D

Gross margin is which of the following, as percent of revenue?

  • A. Revenue minus cost of goods sold
  • B. Expenses plus taxes and depreciation
  • C. Gross profit minus expenses
  • D. Cost of goods sold


Answer : A

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.


Answer : B

What best describes a key competency of compensation professionals regarding HR management of the organizations employees?

  • A. Ensuring they are appropriately selected, developed, appraised and rewarded
  • B. Monitoring individual employee career paths and succession planning
  • C. Communicating regularly with line management on performance management
  • D. Ensuring that all regulatory and voluntary payroll deductions are properly administered


Answer : A

Page:    1 / 6   
Exam contains 78 questions

Talk to us!


Have any questions or issues ? Please dont hesitate to contact us

Certlibrary doesn't offer Real Microsoft Exam Questions.
Certlibrary Materials do not contain actual questions and answers from Cisco's Certification Exams.
CFA Institute does not endorse, promote or warrant the accuracy or quality of Certlibrary. CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.