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  • Exam Name: Business Acumen for Compensation Professional
  • Last Update: 18-May-2024
  • Questions and Answers: 78
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C8 Questions and Answers

Question # 1

What is the most common term for the broad framework of principles and approaches that guide day-to-day decisions affecting the business, including how it positions itself in the market?

A.

The business plan

B.

The corporate objective

C.

The mission statement

D.

The competitive strategy

Question # 2

Which of the following best describes present value?

A.

The current value of holdings

B.

The current value of holdings and how much it will grow over time at a given rate of return

C.

The desired value in the future and what needs to be invested today to realize that amount

D.

The difference between the desired value in the future and the current value as a percentage of the desired value

Question # 3

As a general rule, what are individual contributors most likely to ask about their compensation?

A.

What the take-home pay will be

B.

How their pay compares to co-workers

C.

How the company sets compensation budgets

D.

How the company makes pay decisions that affect them

Question # 4

An organization whose focus is on obtaining capital, marketing products or services, sales growth and cash conservation is most likely to be in what stage of the business lifecycle?

A.

Start-up

B.

Growth

C.

Mature

D.

Decline

Question # 5

If employees have a significant impact on the bottom line, what type of pay mix is most appropriate?

A.

A varying mix depending on employee influence on goals to provide the necessary incentive to maximize profits

B.

100% variable pay to motivate all employees to maximize productivity and sales

C.

90/10 for the majority of employees (base/variable) to share in the company’s success with increased variable pay for management/executives to motivate employees to seek higher positions

D.

High base pay and low variable pay to ensure predictability of total compensation expense

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