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WorldatWork C8 Business Acumen for Compensation Professional Exam Practice Test

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Total 78 questions

Business Acumen for Compensation Professional Questions and Answers

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Question 1

The XYZ Company produces innovative products and brings them to market in advance of their competitors. What strategy is XYZ using?

Options:

A.

Operational excellence

B.

Product/service leadership

C.

Customer intimacy

D.

Brand loyalty

Question 2

What question is answered by the organization’s mission statement?

Options:

A.

What direction will we take?

B.

How do we work?

C.

Why are we in business?

D.

How will we achieve our objectives?

Question 3

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?

Options:

A.

The industry it operates in

B.

The bottom line

C.

The organizational headcount

D.

The risk tolerance of compensation leaders

Question 4

What is the primary reason why a compensation professional working for a multinational company should understand regulatory requirements and application of rewards globally?

Options:

A.

Because legal compliance with compensation-related regulations is the responsibility of the compensation department

B.

Because the compensation professional has a fiduciary responsibility to ensure that the financial resources of their organization are spent in a prudent manner

C.

Because it is possible to pay significantly less for talent in different countries and compensation should advise management on when and where to locate various jobs within the company

D.

They shouldn’t. Due to the complexities of global regulations and practices, compensation administration outside of the home country should be outsourced.

Question 5

A fine jewelry chain distinguishes itself from the competition by focusing on carefully selected customers and building bonds to meet or exceed their needs and expectations. What strategy is this company using?

Options:

A.

Operational excellence

B.

Product/service leadership

C.

Customer intimacy

D.

Brand loyalty

Question 6

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

Options:

A.

Compensation budgets only because staffing cannot exceed the funds available

B.

A combination of organizational goals and budget realities

C.

The consensus of HR management and line management estimates

D.

The opinions of senior leaders in the organization

Question 7

“Cost-benefit thinking” is most useful in the context of financial management for purposes of what?

Options:

A.

Procurement

B.

Recruiting

C.

Setting priorities

D.

Plan administration

Question 8

What best describes a use of strategic analysis?

Options:

A.

Pricing your products appropriately

B.

Understanding your business and its competitive strengths and weaknesses

C.

Forecasting profit, growth and investment performance to develop realistic budgets

D.

Evaluating prior year performance for the narrative portion of annual financial reports

Question 9

Information on the annual report shows results for what time period?

Options:

A.

The calendar year from January 1 to December 31

B.

The fiscal year, which matches the calendar year from January 1 to December 31

C.

The fiscal year, which shows results from July 1 to June 30

D.

The fiscal year, which may match the calendar year or may be a different 12-month period, depending on the company

Question 10

Regarding key competencies for financial management, HR management and resource management, what sets top performers apart?

Options:

A.

The level of formal education in each area

B.

The ability to prioritize which is most critical in any given situation and allocate time and resources accordingly

C.

The ability to tie them together, distill key messages and make impactful decisions

D.

Effective interpersonal and communication skills that can overshadow minor deficiencies in any one area

Question 11

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

Options:

A.

Reduce compensation expense

B.

Improve program efficacy

C.

Select the best vendors

D.

Compensate employees competitively

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Total 78 questions