Worldatwork c8 Exam Practice Test Instant Access

Question 1

What best describes a benefit of business acumen with regard to career development?

AThe ability to display confidence and decisiveness that will inspire others and make you a better leader

BA greater likelihood of promotion, especially when you are competing with individuals with more experience

CIncreased marketability, which will lead to qualification for opportunities outside of human resources

DIt is critical to your career development and a deficiency is very likely to hinder career advancement and success.

Answer : A

Question 2

The ''return'' represented by the Total Shareholder Return (TSR) metric is the increase in what?

AEarnings

BShares

CMarket capitalization

DIncreased market value and reinvested dividends paid

Answer : D

Question 3

You have been asked to develop a short-term incentive plan that motivates employees in business units to increase productivity. Your team has designed a plan that rewards managers and employees quarterly based on achievement against target on measures that should generate productivity increases that will self-fund the plan. When presenting the plan to senior management, what would be the best strategy to receive approval?

ADemonstrate how it is aligned to the rewards philosophy, principles and organizational business strategy

BProvide details on the plan design and measures and how they will be administered to employees at different levels

CMake the case that a self-funded plan poses no risk to the organization while creating the potential for significant gains

DIdentify in advance the priorities of the various stakeholders and design your presentation to address any objections or perceptions they may have

Answer : A

Question 4

The XYZ Company opened a new manufacturing facility with a capital investment of 10,000,000. The cost to obtain the capital was 8%. In its first year of operations, the facility's net operating profit after taxes was 10,500,000. What was the economic value added (EVA) using the EVA formula?

A500,000

B840,000

C8,000,000

D9,700,000

Answer : D

Question 5

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?

AStart-up

BGrowth

CMature

DDecline

Answer : A

Question 6

What metric should compensation professionals pay closest attention to for ensuring alignment between the compensation strategy and the HR and business strategies?

AVariable pay costs as a percent of total compensation

BTotal compensation expense for the business, including base pay and variable pay

CReward costs as a percent of total operating costs

DThe organization's market compa-ratio

Answer : C

Question 7

Using efficient and cost-effective approaches to integrate technology into the workplace is most likely to do what?

AReduce compensation expense

BImprove program efficacy

CSelect the best vendors

DCompensate employees competitively

Answer : B

Worldatwork Business Acumen for Compensation Professional c8 Exam Practice Test