Worldatwork CECP Exam Practice Test Instant Access

Question 1

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 2

How do quarterly reports most commonly compare to the annual report?

AThe cumulative information on the four quarterly reports adds up to the information on the annual report.

BThe quarterly reports are more detailed. The annual report provides similar data in summary form.

CThe annual report is required and the quarterly reports, while commonly used, are optional.

DThe quarterly reports are not as detailed as annual reports, and might not match due to changing accounting estimates over the year.

Answer : D

Question 3

Assessment of current and future staffing needs should be based primarily on what?

ACompensation budgets only because staffing cannot exceed the funds available

BA combination of organizational goals and budget realities

CThe consensus of HR management and line management estimates

DThe opinions of senior leaders in the organization

Answer : B

Question 4

What do working capital metrics evaluate?

AThe change in working capital over a specific period of time, typically one year

BA company's efficiency in converting short-term capital into cash

CA company's mean capital expenditure per employee

DThe amount of cash needed to meet the company's short-term obligations

Answer : B

Question 5

If a company has a higher percentage of employees with fixed compensation than variable compensation, what happens as revenues increase?

ACompensation costs eventually stabilize and become a consistent percent of revenue.

BCompensation costs and revenue increase at approximately the same rate.

CCompensation costs eventually decrease as a percent of revenue, increasing profit growth.

DCompensation costs remain the same as a percent of revenue until variable compensation costs exceed fixed compensation costs.

Answer : C

Question 6

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 7

What best describes a benefit of business executive 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

Worldatwork CECP Certified Executive Compensation Professional Exam Practice Test