Worldatwork c8 60 Exam Practice Test Instant Access

Question 1

What best describes an effective approach for balancing multiple priorities and perspectives regarding compensation?

ABeing firm and uncompromising in your decision-making

BRepresenting your view with data and relating it to business results

CFinding a compromise that may not appease all stakeholders but does not give any one group or person everything they are seeking

DGiving priority to perspectives based on the job or influence level of the stakeholders

Answer : B

Question 2

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 3

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 4

What happens to the marginal cost if revenue accelerates slower than variable costs but fixed costs remain the same?

AIt remains the same.

BIt decreases because variable costs are increasing.

CIt increases at the same rate as variable costs.

DIt becomes increasingly higher as revenues increase.

Answer : D

Question 5

What is the most accurate definition of organizational vision?

AA description of who the organization is, where it is headed and what it wants for the future

BA written explanation of the intention or purpose of the organization and why it is in business

CA statement of what kind of organization it wants to be and the guiding principles and/or beliefs shared by stakeholders

DA detailed account of the organization's goals, directions to achieve them and how it will compete

Answer : A

Question 6

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

AFocus on negative issues first, such as compensation costs exceeding budget, to get their attention

BProvide 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.

CAssume they have little knowledge of the issue and make a detailed presentation leading up to the purpose of the meeting.

DRecommend a solution that will solve the issue and explain why it is the best solution available.

Answer : D

Question 7

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?

ABy using cash from other segments of the business

BBy using its high credit rating from prior years to receive a line of credit until the strategy begins to work

CBy selling its products and services at a loss until revenue increases and slowly raising prices until it begins to break even

DBy identifying and duplicating the strategy used by its main competitor.

Answer : A

Worldatwork c8 Business Acumen for Compensation Professional 60 Exam Practice Test