Worldatwork CECP Exam Questions Instant Access

Question 1

What is the most likely explanation for why compensation and rewards require a strong grasp of business executive 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 executive is required for all compensation decisions

Answer : C

Question 2

What choices are most commonly faced by companies in the decline phase of the business lifecycle?

AWhether to improve productivity, obtain new operating capital or generate new sales growth

BWhether to reinvest in existing products, create new products or maximize profits with current products as long as possible

CWhether to acquire competitors with greater market share or merge with more successful companies

DWhether to increase sales, maximize distribution capacity or increase efficiency to meet growing demand

Answer : B

Question 3

Which of the following is the best definition of variable pay?

ACompensation that is given in the form of perquisites such as a company car, fitness membership, paid training, etc.

BCompensation that is nondiscretionary and does not vary according to performance or results

CCompensation that is contingent on discretion, performance or results

DCompensation that is determined by the organization's pay structure

Answer : C

Question 4

Which of the following best describes the guiding principles and/or beliefs shared by stakeholders in an organization?

AMission

BVision

CValues

DStrategy

Answer : C

Question 5

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 6

Which of the following factors has the greatest impact on how aggressive a stance (high vs. low) an organization will take in terms of where it positions itself against the market with its compensation strategy?

AThe industry it operates in

BThe bottom line

CThe organizational headcount

DThe risk tolerance of compensation leaders

Answer : B

Question 7

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

Worldatwork Certified Executive Compensation Professional CECP Exam Questions