Question 1

Which of the following is the most accurate statement about the business strategy?

Options :

A : It usually is a secondary consideration in compensation design.

B : It is the company-s plan for competitive positioning of its products or services.

C : It must be written after the company-s operating plans are approved by senior management.

D : It is developed for compensation, benefits and the work-life using the HR strategy as a basis.

Answer: B

Question 2

Regarding presentations to executives, which of the following is most accurate?

Options :

A : Keep them brief

B : Use multiple media

C : Include all details related to the issue

D : Leave backup data out of the presentation so there is time to develop an effective response to unexpected questions

Answer: A

Question 3

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

Options :

A : Possess a high level of education and competency in accounting principles

B : Determine which programs are crucial to the enterprise and which programs are expendable

C : Partner with multiple departments and external consultants and vendors

D : Demonstrate broad understanding of principles of financial management and business expertise

Answer: D

Question 4

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

Answer: C

Question 5

Regarding fixed and variable costs, what are Finance's primary concerns?

Options :

A : Fixed costs must be kept to a minimum, but variable costs can fluctuate since they tend to correlate with revenue.

B : Variable costs often have a heavier focus than fixed costs, which applies to all areas, including compensation.

C : Fixed costs and variable costs are equally important and both should be kept to a minimum.

D : Fixed costs are not a concern because they cannot be changed, so the focus is primarily on variable costs.

Answer: B

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