Worldatwork c8 Exam Practice Test Instant Access

Question 1

If employees have a significant impact on the bottom line, what type of pay mix is most appropriate?

AA varying mix depending on employee influence on goals to provide the necessary incentive to maximize profits

B100% variable pay to motivate all employees to maximize productivity and sales

C90/10 for the majority of employees (base/variable) to share in the company's success with increased variable pay for management/executives to motivate employees to seek higher positions

DHigh base pay and low variable pay to ensure predictability of total compensation expense

Answer : A

Question 2

To ensure appropriate funding levels, the compensation professional must generally do which of the following?

APossess a high level of education and competency in accounting principles

BDetermine which programs are crucial to the enterprise and which programs are expendable

CPartner with multiple departments and external consultants and vendors

DDemonstrate broad understanding of principles of financial management and business expertise

Answer : D

Question 3

What best describes the most effective approach for facilitating fact-based decisions?

AEnsuring support from all internal and external stakeholders

BEstimating results based on historical data

CUsing statistical methods to predict outcomes

DDetermining, sourcing and collecting appropriate data

Answer : D

Question 4

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

AA Star

BA Question Mark

CA Market Leader

DA Cash Cow

Answer : D

Question 5

Understanding basic organization design principles is an example of what key competency for compensation professionals?

AFinancial Management

BHR Management

CResource Management

DPolicy Management

Answer : B

Question 6

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 7

What is the most likely explanation for why compensation and rewards require a strong grasp of business acumen for compensation professionals?

ABecause the internal and external environments are constantly changing

BBecause the best interests of the organization take priority, which can lead to difficult decisions and implementation issues

CBecause they are emotional issues and stakeholders have many vested interests

DBecause strong business acumen is required for all compensation decisions

Answer : C

Worldatwork Business Acumen for Compensation Professional c8 Exam Practice Test