Worldatwork c8 Exam Questions Instant Access

Question 1

Internal process metrics are most useful in which of the following situations?

AAssessing how well the business is running

BDetermining employee satisfaction levels

CMeasuring the financial success of the business

DEvaluating customer perceptions of products or services

Answer : A

Question 2

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?

ABusiness forecasting

BBusiness analytics

CPredictive modeling

DStatistical analysis

Answer : B

Question 3

What best describes a key competency of compensation professionals regarding HR management of the organization's employees?

AEnsuring they are appropriately selected, developed, appraised and rewarded

BMonitoring individual employee career paths and succession planning

CCommunicating regularly with line management on performance management

DEnsuring that all regulatory and voluntary payroll deductions are properly administered

Answer : A

Question 4

Your company has had a strong fiscal year with a 15% increase in net income over the prior fiscal year. Share prices are at an all time high. Working with Finance, you have arrived at a 2.5% merit increase budget for the next fiscal year, a smaller increase than the last fiscal year. Finance has indicated that some large capital expenditures will be needed next year, so the company needs to conserve resources. Additionally, Legal is in final negotiations on a lawsuit that may be very costly to the company. Word of the smaller increases has line management concerned that they will lose their best performers. Given all of these factors, what is your best course of action?

AImplement the merit increase budget as is because the anticipated financial obligations have made it necessary

BMeet with Finance and make a case for a larger merit increase budget because the loss of key talent will cost more over the long term than the savings from the smaller merit increases

CGather the perspectives of all stakeholders, analyze their individual concerns and meet to determine whether a compromise solution is possible

DRecommend a reduction in force to eliminate poor performers, which will increase the merit budget by reducing headcount

Answer : C

Question 5

Which financial statement or combination of statements provide(s) the most comprehensive view of the company's financial situation?

AThe balance sheet

BThe income statement

CThe cash flow statement and the income statement

DThe cash flow statement, along with the balance sheet and income statement

Answer : D

Question 6

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?

AStart-up

BGrowth

CMature

DDecline

Answer : C

Question 7

What best describes what forecasting helps the organization to do?

ARecognize possible issues and concerns that will drive budget planning

BPrepare quarterly and annual reports and their associated statements

CWithhold payroll taxes for all elements of compensation

DAnticipate future capital needs by determining when the organization will enter the next phase of the business lifecycle

Answer : A

Worldatwork Business Acumen for Compensation Professional c8 Exam Questions